This is due to the fact that there is no control over the prices by the Union government, industry sources maintain, demanding the price fixation of these raw materials to be done once in 6 months. The price stability should be maintained, they insisted.

With the consumption of plastic products -- from PVC pipes, sanitary pipes, electrical goods, moulded articles to milk packaging-- growing fast in the domestic market, the government should reduce the excise duty from 24 per cent to 15 per cent and protected customs duty from 35 per cent to 20 per cent as per the Raja Chelliah and Rajesh Mohan committees. PVC priceswent up 40 per cent since March 1999 while PP, LDPE and LLDEP prices have gone up by 33 per cent as the small scale sector bukling down since February.

The plastic industry has been already passing through a difficult time on account of recessionary trend coupled with highest taxes from all sides. These frequent hike will further hit their finances and working capital, the industry fears.

The industry sources alleged that the raw material producers like Reliance, IPCL and Nocil have taken undue advantage of international market prices without considering the plight of plastic processing units by hiking raw material prices nearly five times. For example, Reliance hiked the prices of PP (polypropelene) nearly five times.

In March 1999, the price was at Rs 32,250 per tonne (fob). In June the price touched a high at Rs 42,550/tonne, by hiking the price every month, the official said. Like that IPCL, a government undertaking, hiked PVC resin (also a raw material) prices five times. It was Rs 33,400 a tonne(inclusive of excise and freight) in March; Rs 36, 900 in April; twice in May Rs 40,620 to Rs 43,600; Rs 46,600 in June, he added.