Plastic manufacturers flags raw material price surge, alleges cartelisation

The Tamil Nadu and Puducherry Plastic Manufacturers’ Association (TANPPA) has flagged a steep rise in the prices of key raw materials, alleging the operation of a large cartel that is constraining supply. The association has called on the government to intervene and stabilise the situation.

“The price of Low Density Polyethylene (LDPE) has increased from ₹110/kg in March 2026 to ₹171/kg now. They are saying its because of war,” G.Sankaran, President of Tamil Nadu, Pondy Plastic Association (TANPPA) said. “The price of Linear Low-Density Polyethylene and High Density Polyethylene has also gone up. The cost of both these have gone up from ₹100 to ₹165/kg,” he added.

He pointed out that major plastic raw material manufacturing companies should supply raw materials directly to plastic product manufacturers through their authorized stockists located in key cities. “Under no circumstances should large manufacturing companies sell raw materials in bulk to traders and intermediaries. Because traders purchase several hundred tons of raw materials in bulk, create artificial shortages in the market, and increase prices through black-market practices,” he explained.

The association said that the government should ensure uninterrupted supply of raw materials to such units so that production can continue without disruption. They also requested that the 18% GST imposed on waste plastic and recycled plastic products must be fully exempted.