Plastic exports were lower-than-targeted figure despite the fact that prices of plastic raw materials -- HDPE, LDPE, LlDPE, polymers and others -- have all been dipping both in the international and domestic markets throughout the last one year. Given the export performance of the plastic goods last year, indicates that the plastic exporters have not been able to take advantage of the lower raw material prices, which gives a competitive edge for their products in the international market.

Exports of toys and games and polylined jute goods are the two product ranges under the plastic goods sector which saw a jump of over 100 per cent growth during 1997-98over the previous year. Exports of toys and games were up 149.66 per cent to $3.62 million ($1.45 million) while the exports of polylined jute goods were up by 122.90 per cent to $2.92 millioin ($1.31 million).

On the other hand, cine X-ray films and spectacles among others topped the list of plastic related exports which saw exports dip by over 33 per cent.

Majority of Indian companies seem to be satisfied with the vast domestic market and therefore, have little inclination for manufacturing goods exclusively for the export market.

Accepting the fact that the exporting community was not able to take advantage of the declining plastic raw material prices, Plexconcil executive director RP Kalyanpur said: "We hardly produce goods exclusively for the export markets. Most of them export those goods which are the surplus left after selling goods at a high price in the domestic market."

The high prices charged in the local markets, help majority of the plastic exporters to charge lower prices in the exportmarkets.

However, according to Kalyanpur, "the exports could have been higher if the there were standardised procedural policies, which they are not."

Added Kalyanpur:Even when plastic exports is considered to be a thrust area, the government does not seem to be inclined to give exporters the benefits given to other sectors -- mainly getting raw materials at international prices.

What is more, the commerce ministry, despite promises for a meeting with the plastic exporting community and the council members, have been avoiding the meeting.

In a recent letter to the commerce minister Ramakrishna Hegde, Plexconcil chairman, Gaurav Swarup said: Our performance for the last fixcal has been disappointing for reasons discussed with your ministry on various occasions.

Added Swarup: `Export growth rate can be sustained and enhanced by generating exportable surplus for which improved productivity and additional investment are required. For the plastics sector, this is all the more important since we barelyenjoy any comparative advantages.

As such it is imperative that the zero duty benefits under the EPCG scheme for imports of at least Rs 1 crore should be extended to the plastic sector. This step will encourage additional investment to generate exportable surplus.'

The council had intended to further appraise the ministry about the suggestions and strategies for sustaining export growth from the plastic sector at a meeting to be held sometime last month (along with chairmen of all the export promotion councils). However, the meeting has not been held as yet, informed sources said.