Metal packaging industry in country facing crises after imposition of BIS standards by govt, urges review

The Rs 10,000 crore metal packaging industry of India is in a fix as it doesn’t have many options on securing raw material after global players and suppliers of tinplate/ tin free steel have refused to supply the same to India in the wake of imposition of BIS standards.

The Metal Containers Manufacturers Association of India (MCMA), an organization that represents the interests of companies involved in the production of metal containers, packaging and allied components and representing MSMEs engaged in the business of metal cans, containers and components etc. has said that there is going to be an acute shortage of raw material as global players have refused to accept their orders to provide tinplate/tin free steel even as the domestic market is not equipped to fulfil their needs.

This 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 more than 15% recently, as per a press release.

The MCMA has sought a freeze on the implementation of ‘Steel and Steel products Quality Control Order’ dated 17th July, 2020. The association has requested 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 industry’s demand of 700000 tonnes per annum as the industry is already reeling under the pressure due to the pandemic enforced lockdown across the country and further virus threat looming large in several countries including India.

The association has also requested the ministry to allow use of ISO certification materials in addition to BIS certified material. It requested the ministry to allow the use of materials which are aligned to ISO. The same has been included in FSSAI order and also recommended by the Ministry of Micro, Small & Medium Enterprises (MSME).

The Ministry of Steel’s order mandated BIS certification on the major inputs 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 believes 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.

The MCMA says that there is a shortage of raw material used for packaging food and other items which has resulted in an increase in prices of packaging items.

The tin containers and closures are mostly used for packing of 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 flavored milk etc.