Container manufacturers in Gujarat raise issue of raw material shortage

Now, owing to the non-availability of raw material, the overall industry, including these SME players based in Gujarat would be badly hit and jobs of nearly one lakh people will be at stake.

Although the umbrella body, MCMA, has forth a set of recommendations to the ministry over the concern of BIS certifications and hoping for a positive response. However, so far there is no respite other than just a three-month extension.

The Metal Container Manufacturers’ Association (MCMA), which represents the interests of companies involved in the production of metal containers and allied components, received a three-month extension on 17 April from the government to implement BIS notification.

MCMA has urged the government to put on hold the implementation of steel and steel products Quality Control Order dated 17 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 association has requested the ministry of steel to postpone the implementation of the QCO till a sufficient quantity of tinplate / tin-free steel is produced locally to meet the industries demand of 700,000 tonnes per annum, as the industry is already under pressure due to the pandemic. The second wave of the pandemic with lockdown being implemented will only worsen the situation.

The association has also requested the ministry of steel to allow the use of ISO-certified materials, in addition to BIS-certified material. The MCMA requested the ministry to allow the use of materials that are aligned to ISO. The same has been included in the FSSAI order and also recommended by the MSME ministry.

The industry feels that it is difficult to force international suppliers to go for BIS certification as the procedure of BIS registration is unmanageable during these times. So, these suppliers have already stopped shipping tin plates to India. There is a huge shortage of products in the market.