Indian PE demand to be hit by Supreme Court gutka packaging ban

27 December 2010 02:02  [Source: ICIS news]

SINGAPORE (ICIS)-Indian polyethylene (PE) film consumption is set to take a hit from the Supreme Court of India's ban on the use of plastics packaging in gutka, a mix of tobacco and areca nut consumed extensively in the country, industry sources said over the weekend.

"The ban, which was announced in early December, will take effect on 1 March 2011, but PE film trades have already begun to slow down ahead of that," said a Delhi-based trader.

Consumption of PE film by the gutka sector is estimated at around 50,000 tonnes/year, traders and end-users said.

However, PE demand is still expected to grow at 9-10% year-on-year in the financial year beginning 1 March 2011, only slightly down from the 10-12% projected earlier, as food packaging and pipe grades are showing robust growth, said industry sources.

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By: Prema Viswanathan
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