Metal packaging industry may face an acute shortage of raw material

The metal packaging industry in India is facing hurdles in securing its raw material, tinplate and tin-free steel due to the imposition of BIS Standards at a time when countries are witnessing travel restrictions due to the viral pandemic. “There is going to be an acute shortage of raw material as the global players have refused to accept their orders to provide tinplate/tin-free steel while the domestic market is not so equipped to fulfil the demand,” said the Metal Containers Manufacturers Association of India (MCMA) in a statement on Monday. The industry which is largely dependent upon the import of tinplate/ tin-free steel from various countries is under tremendous pressure as there is a shortage of raw material and the prices have escalated by more than 15% in the last six months. The Ministry of Steel issued the steel and steel products quality control order (QCO) on the 17th of July 2020. This order mandates BIS Certification on the major input required by the industry like tinplate and tin-free steel. It imposes restrictions on steel products like easy-open ends, peel off ends, which the industry imports from several foreign countries. The MCMA in its statement said that the QCO has been notified at a time when the industry is already reeling under the pressure and trying to reset the business during the pandemic. “The industry feels that it is difficult to force the international suppliers to go for BIS certifications as the procedure of BIS registration is unmanageable during these times,” it said. The tin containers and closures are mostly used for packing edible and non-edible items. The tin-free steel is majorly used to manufacture closures, crowns, and components used to seal bottles for soft drinks, beer, juices and flavoured milk. The Metal Container Manufacturers’ Association (MCMA) is requesting the government to put on hold the implementation of the Steel and Steel Products Quality Control Order dated 17th July 2020. “We want the Ministry of Steel to postpone the implementation of the QCO till sufficient quantity of tinplate/ tin-free steel is produced locally to meet the industries demand of 700,000 tonnes per annum,” the statement said. The industry is already reeling under the pressure due to the pandemic enforced lockdown across the country and further virus threat looming large at several countries including India, the statement added.