Shortage of raw material slows down packaging units

Ambika Sharma

Tribune News Service

Solan, May 3

With the shortage of raw material plaguing the packaging industry operating in various industrial clusters of Himachal, including the industrial hub of Baddi-Barotiwala-Nalagarh(BBN), manufacturing activities were unable to pick up the pace.

Though, as many as 407, pharmaceutical units were operational, but their manufacturing capacities were barely ranging from 10 to 45 per cent in BBN, Kala Amb, Mehatpur, Parwanoo, Kangra, Paonta Sahib, etc, with only a few bigger units like Alkem, Mankind, Cipla, Cadila, etc, managing to manufacture up to 70 per cent.

Krishan Mohan Khanna, Managing Director, Shree Naina Container, Baddi, which manufacturers pet bottles and pet preform for beverages across the country and among the largest packagers of the state said: “Shortage of raw material has slowed down their manufacturing operations and it was very difficult to get partial shipments to Baddi. As against 15 truckloads of finished products which were dispatched every week earlier, barely 5 to 6 trucks were being dispatched now.”

“Lack of labour availability was further adding to the problems as barely one-third workforce was available. The non-consumption of beverages has also drastically reduced the demand for pet preforms which was among our major products,” added Mohan.

The State has about 250 corrugation units which catered to the state’s industries with almost 95 per cent being tiny or small enterprises.

These industries operated on semi-auto mode and employed a large number of migrant labourers. A large number of labourers have returned to their native State and shortage of labour was making it difficult to operate the corrugation industries.

Surinder Jain, president, HP Corrugation Box Manufacturers Association, who runs Devashish Food Packaging unit said: “The State’s industries produced about 40,000 tonne material per month but after the lockdown, their productivity has been reduced to about 30 per cent”.

He said several factors like non-operation of 6 paper mills in the State, which produced kraft paper for the packaging units as well unavailability of the paper from mills in Uttar Pradesh has drastically reduced its availability.

Though as much as 20,000 tonnes of kraft paper is produced in mills located in Kangra, Baddi, Una and Kala Amb, since they were closed the supply of kraft paper was adversely hit.

The price of kraft paper has increased from Rs 4 per kg to Rs 5 kg while margins have shrunk.

He said the state government should consider the opening of paper mills as they were subsidiaries of packaging units and pharmaceutical units which were manufacturing essential products like medicines.

With various horticulture crops like apple, peach, apricot, cherry and dry fruits like almonds etc—which have either attained maturity or will do so in the coming months—will need at least 3 crore boxes for their packaging.

If these problems persist, availability of packaging material will also become an issue for the fruit growers opines Jain.

Similar, sentiments were aired by SL Singla, Advisor, Himachal Drug Manufacturers Association, who said the State Government should consider opening paper mills as they will reduce the shortage of kraft paper, which the pharma industries were facing in packing of medicines.

Since, every third drug in the Indian market was manufactured, here, this step will ease the industry to some extent.

Sanjay Sharma, a pharmaceutical manufacturer, said: “Lack of availability has increased the cost of packaging material by 25 per cent and advance payments were being sought to secure packaging material which was difficult in view of the shrinking cash availability. The productivity was at an all-time low at 45 per cent and lack of packaging material availability was a contributory factor.”