Within the LLDPE segment, consumption of film butene is likely to increase from 1,09,000 tonnes to 5,13,000 tonnes while film octene will see a jump from 26,000 tonnes to 2,09,000 tonnes. Consumption of extrusion is likely to go up from 12,000 tonnes to 61,000 tonnes.

Consumption of high density polyethylene (HDPE) by the packaging sector is expected to grow by 12 per cent per annum from 4,10,000 tonnes to 11,00,000 tonnes. Also offtake of films could rise from 98,000 tonnes to 4,67,000 tonnes. Packaging demand for polypropylene (PP) is set to reach 10,00,000 tonnes in 2006-07 from levels of 2,72,000 tonnes in 1997-98 recording a growth of 15per cent.

Consumption of polyvinyl chloride (PVC) is likely to increase from 54,000 tonnes to 160,000 tonnes. In this category demand from calendered sheets is set to increase from 17,000 tonnes to 60,000 tonnes.

The plastic industry is hopeful of high growth in demand from the various products requiring packaging. Massive potential exists in the milk and milk products packaging industry as only 12 per cent of the current consumption is in packaged form, which is likely to increase to 20 per cent by the turn of the century. Total milk and milk products in packaged form is expected to increase from nine per cent to 17 per cent. A 190 per cent rise is expected in the plastic pouch consumption.

Massive potential exists in the food processing industry. While only 1.3 per cent of food is processed in India, in developing countries this ratio is 40 per cent and in developed countries it is 70 per cent. Value addition of food production in the country is only seven per cent as compared to 45 per cent inPhilippines and 188 per cent in UK. Potential in India by 2005, for value added foods is Rs 2,25,000 crore.

With the recent adulteration in mustard oil, the industry is optimistic that vegetable oil sector will see a boost in demand.

Currently only 10 per cent of oil sold in the country is in packed form.Currently the plastics processing units are operating at a paltry 62 per cent capacity utilisation with 11,500 units operating in the industry. The industry has an installed capacity of 4.6 million tonnes set up with an investment of Rs 6,810 crore.

The highest capacity is in monolayer films with 3845 units having an installed capacity of 3,65,000 tonnes.

Concerns were raised over increasing competition in the international market and the declining tariffs rates in India. As capacity in India are fragmented and of smaller capacities they are uncompetitive and need upgradation and modernisation.