Gujarat Plastic Manufacturers Flag Shutdown Risk, Seek Relief and Subsidies

Surat: The ongoing Iran–US–Israel conflict has dealt a severe blow to Gujarat’s plastic manufacturing sector, with losses exceeding ₹18,000 crore in the past month, according to the Gujarat State Plastic Manufacturers’ Association (GSPMA). The body has sought urgent government intervention, citing major disruptions in global supply chains that have triggered sharp volatility in polymer raw material prices.

GSPMA said the industry is facing steep and unpredictable price hikes, irregular supply, and longer lead times, all of which are disrupting production planning and straining working capital cycles.

Association president Anish Patel noted that Gujarat houses nearly 60% of India’s plastic industry, directly employing around 50 lakh people and supporting 2.5 crore indirect jobs. He added that about 50% of units have already shut operations due to the ongoing crisis and rising overhead costs, warning that the sector may struggle to sustain operations beyond a month if the situation persists.

The association has urged both the central and state governments to reinstate 17 discontinued subsidies for the sector. It has also sought temporary GST relief and requested banks to waive interest charges to help the industry stay afloat. DeshGujarta