Plastic product prices likely to rise 50-60% as polymer prices shoot up

Plastic product prices are expected to rise by 50 to 60% from the beginning of April if the war in West Asia continues impacting supply of key raw material mainly crude oil, industry officials said.

They said the prices of polymers, derived from crude oil and natural gas, has risen by 50 to 60% in last few days creating concern and margin pressure.

Iran-Israel war updates on March 18, 2026

Plastic manufacturers are yet to fully pass on the additional financial burden on their customers as they have been managing with the inventory that was procured well before the war broke out. But the stocks are fast depleting, they said.

“Product prices will go up. All the companies are under margin pressure and they will go for price rise. Manufacturers are procuring raw material based on the order on a day to day basis and pricing the supplies based on the raw material price,” said Sunil Shah, president, The All India Plastics Manufacturers’ Association (AIPMA).

“Because there is some materials available in pipeline, things can be managed till March end and as soon as March goes, prices will be affected from April onwards. After that prices will be fixed for the year. But we believe the war will end in March and the impact of the temporary high prices will playout for the next 30 to 45 days,” Mr. Mehta said.

The cost of a small water bottle is about ₹2 and if prices rises it would cost more than ₹3. It all depends on the bottled water brand to absorb that cost or pass on to buyers. Similarly, the price of a 20-liter plastic water bottle which is about ₹110 now can go up sharply, industry officials said. 

Confirming that polymer prices have gone up over last weeks, Arvind M. Mehta, chairman, the All India Plastics Manufacturers Association said the war and its impact has disturbed plastic manufacturers as well as the whole world.

“Because of raw material price rise the demand has slowed down by 25-30% and will come down further if the war prolongs,” he said.

He said despite the price hike exports can continue. “There is possibility that we can export 4 times more. For exports we are positive because our international competitors will have the same raw material price,” Mr Mehta said.

The industry is now positioning India as a leading global hub for plastic finished goods. In line with this vision, it has announced plans to organise Plastiworld 2026, a premier B2B exhibition to connect Indian manufacturers with international buyers and global markets.

The global trade of plastic finished products is estimated at approximately $1.3 trillion, while India’s exports currently stand at about $12.5 billion, representing less than 1% of the global market. By comparison, the United States alone imports plastic products worth over $72 billion annually.

Industry leaders believe that with supportive government policies, development of 2–3 new polymer parks, expansion in plastic machinery and mould manufacturing, and a 100% increase in MSME-based production, India can significantly enhance its export footprint while creating large-scale employment.

Industry experts also said that, similar to how China leveraged major trade platforms like the Canton Fair, India can strengthen its export ecosystem through strategic initiatives and global buyer engagement.

According to Mr Mehta the initiative goes beyond trade expansion and represents a national economic mission.

“Plastiworld is not merely about expansion of trade, but a national mission to establish India as a global hub for plastic finished products,” he said.

To identify export opportunities, AIPMA’s Export Cell conducted a comprehensive study covering 21 countries and found that with competitive pricing and improved quality standards, Indian manufacturers can replace suppliers from China and Vietnam in several markets.

To accelerate this export mission, AIPMA is organising PlastiWorld 2026 from 23–26 March 2026 at the Jio World Convention Centre. The exhibition will be India’s first international event dedicated exclusively to plastic finished products, showcasing a wide range of products including household items, packaging. building, bags, and sports for global buyers.

The increasing cost of packaging materials threaten to inflate the price of food items in the retail market. 

Rice producers in Kangayam, a rice mill hub in Tamil Nadu, say the bags they use to pack 26 kg rice used to cost ₹23 a piece. Now, it is ₹29 a piece. “We have local suppliers who get the packing material in rolls and stitch it for us according to our requirement. There is a delay in getting the bags too. We buy another kind of bag from Gujarat. The prices of both these varieties of bags have shot up,” said Palaniswamy, president of the Kangayam Rice Mill Association. 

The cost of firewood has also seen a jump from ₹4,500 a tonne to ₹6,000 a tonne, he said. 

The oil mill owners in Kangayam say they pack edible oil in bottles or pouches and both are polymer-based. A bottle that used to cost ₹10 is now sold for ₹15. The cost of firewood has increased 20-25 %. The oil mills have told their bulk buyers that they may increase the end product prices if this continues for a month. 

In Tiruppur, leading brands and all hosiery manufacturers for the domestic market have announced that hosiery products will be priced ₹7 more for a piece as the cost of inputs have shot up.  

R. Ramamurthy, former president of the Coimbatore District Small Industries Association, said that in Coimbatore, a large number of MSMEs use plastics. “From automobiles to pumps, use of plastics is on the rise. We have a lot of injection moulding MSMEs. Jump in cost of plastic prices and shortage in availability of commercial cylinders will hit the MSMEs badly,” he said. 

Published – March 18, 2026 10:06 pm IST