The industry also wants the government to clear the anomalies existing in the tax structure, import duties, labour laws, lending rates by banks to make the domestic industry more competitive, against the expected threat under WTO regime, he said. The industry wants the Centre to reduce the customs duty on imported polymers from 38.5 per cent to 20 per cent, to give a level playing field to the processing industry, Mr Ravindra Babu, president, AP Plastics Manufacturers' Association (APPMA) told The Financial Express, that annual consumption of polymers in India is about 4 million tonne, and it is growing at the rate of about 15 per cent per annum.

It is expected that by 2010 the annual consumption of polymers in India, will touch 12.5 million tonne, he said. Higher rate of tariff protection, given to the domestic polymer industry is enabling them to adjust the prices frequently, which leads to fluctuations and making the market turbulent, Mr Ravindra Babu said. The industry is facing many problems such as poor technology, lack of working capital limits, lack of access to easy credit flow from FIs and banks, apart from collateral security. According to him, though some of the raw materials to the industrial sector and packaging material, are kept under uniform sales tax of 4 per cent, the plastic articles are taxed at 12 per cent.

The term plastic goods, PVC products is vague which is bound to create confusion, and there is a possibility of adopting different classifications, for the same products, by the state governments to suit their purpose, hence causing considerable damage to the local processing industry, Mr Babu claimed. Regarding the de-reservation of items for small scale sector, Mr Babu said this will adversely hit the small and tiny industry. However, he asked the small scale sector, to see the positive aspect of this move. APPMA is creating proper awareness among the users, and the general public and also has taken the initiative in countering misinformation on the environmental aspect, by joining hands with the Indian Centre for Plastics in Environment, to launch an awareness campaign at the All India Exhibition Society, he said.