The sharp increase in raw material costs for plastic packaging has significantly impacted kirana stores, restaurants, bakers, and various consumer-facing businesses in Pune. The price surge, driven by rising global crude oil prices amid the West Asia conflict, has led to a 40-50% hike in the cost of plastic bags, bubble wrap, foam tarpaulin, and other industrial plastics.
Impact on Local Businesses
Ramesh Kumar, a chikki seller in Lonavala, reported that the price of plastic used for packaging has risen by almost 50% per bag. With no alternative material available, he has been forced to purchase the expensive plastic and may pass the cost onto consumers if prices do not decrease.
Bakeries are also feeling the pressure. A baker from Camp, who preferred to remain anonymous, explained that every product, from bread to biscuits, is packed in plastic for hygiene and convenience. With thousands of kilograms of bags purchased monthly, the bakery is now exploring the possibility of replacing some plastic bags with paper packaging.
Industry Perspectives
Prashant Thakkar, owner of Siddheshwar Trading in Pimpri Chinchwad, noted that suppliers have raised prices by 40-50%, leaving businesses with no option but to pass these costs on to consumers. Hasmukh Shah, owner of Arihant Plastics in Shukrawar Peth, observed that plastic bags previously available at Rs150 per kg have now increased to Rs200 per kg. Consequently, consumers are buying less or only as much as they need, and B2B clients are also purchasing less.
Plastics manufacturers report a 30-40% slowdown in orders due to the higher costs. Umang Gupta, owner of MK Plastics in Pimpri Chinchwad, stated that customers are in a wait-and-watch mode as plastic prices are currently 50% higher. Supply constraints have further complicated the situation, making it harder for manufacturers to secure raw materials.
Restaurant and Gifting Sectors
Restaurants, which rely heavily on plastic packaging for food deliveries, have seen price increases for bags, cutlery, and other items. Saili Jahidardar, owner of Zillionth Bistro and Pune chapter head of the National Restaurant Association of India, mentioned that not all restaurants have passed the hikes on to customers yet.
Sharmila Jain, who runs a corporate and bulk gifting company, reported that the cost per hamper has increased by almost Rs50 due to higher packaging costs for bubble wrap, plastic bags, and foam sheets used in wedding and corporate hampers. She has had to pass the price hikes on to clients, as costs are unlikely to decrease soon.
