Imposition of BIS requirements on tinplate or tin totally free steel has develop into a main hurdle to the Rs 10,000-crore Indian metal packaging sector as it has fallen quick of raw material, with most international players and suppliers of tinplate pulling out of supplies to India.
The sector, making metal cans and containers, is largely dependent on tinplate imports from several nations. Moreover, costs of tinplate or the the raw material for metal packaging have escalated more than 15%, Metal Container Manufacturers Association, (MCMA) stated.
The MCMA has requested the steel ministry to place the Quality Control Order (QCO) on hold till adequate quantity of tinplate is produced in India to meet the industry’s demand of 7 lakh tonnes per annum.
The steel ministry issued the QCO on July 17 final year when the sector was currently reeling below stress for the pandemic-induced lockdown. While the sector expected resetting its company post lock down, forcing suppliers to to go for BIS certification came as a enormous road block considering that it was an costly affair. India not becoming a major marketplace for tinplates, the exporters stopped shipments placing the metal packaging sector in a good difficulty, MCMA president Sanjay Bhatia stated.
The MCMA has urged the ministry to enable use of supplies, aligned to ISO, which the MSME ministry’s FSSAI order has also advisable. The steel ministry’s QCO mandates BIS Certification on main inputs like simple-open ends, peel off ends apart from tin totally free steel. The sector imports all the inputs from various foreign nations and the order notifiying that steel things can not be created, sold/traded, imported and stocked without the need of BIS mark has held back all foreign tinplate mills from exporting to India.
Tin containers and closures are largely used to seal bottle for soft drinks, beer, juices, flavoured milk and other non edible things. Unless the government place its order on hold there would be a cascading impact with enormous job losses and shortage of metal packaging to the meals and pharma sector. The government earlier issued QCO in 2008,2015 and 2017 but withdrew it in view of the demand provide gap and issues in implementation. The exact same circumstance prevails till date with a demand provide gap of 2.5 lakh tonnes per annum, Bhatia stated.