The Bureau of Indian Standards (BIS), under India’s Ministry of Chemicals and Fertilizers, has exempted specialized polyethylene products from the mandatory quality requirements with immediate effect. These products are utilized in packaging end-consumer goods. In 2022, the government issued a quality control order applicable to all primary polyethylene products, including high-density polyethylene (HDPE), low-density polyethylene (LDPE), and linear low-density polyethylene (LLDPE).
A Gazette notification initially released by the government of India on behalf of the Department of Chemicals and Petrochemicals (DCPC) in the Ministry of Chemicals and Fertilizers on April 6, 2022, was revised on January 4, 2024. The revision includes an exemption for specialized polyethylene products used for specific applications in the coating and pharmaceutical categories aiming to facilitate the smooth functioning of these industries. The revision in the Order is a welcomed move by the government for the betterment of the industry.
| BIS quality exemptions |
| Serial No | Products |
| 1 | Low Density Polyethylene Extrusion (LDPE) Coatin |
| 2 | Low Density Polyethylene (LDPE) Film Grades (Blown/ Cast) or Pharma |
| 3 | Linear Low Density Polyethylene (LLDPE) Butene Grades |
| 4 | Linear Low Density Polyethylene (LLDPE) Hexene/ Octene Grades |
| 5 | Metallocene Polyethylene Grades |
| 6 | Base Resins of Power Cable, Jacketing and other applications; and |
| 7 | Compounds for Cable Jacketing/ Sheathing/ Polyethylene-80 and Polyethylene-100 (Black and Pigmented)/ Reinforcement Fillers |
Source: Department of Chemicals and Petrochemicals, Government of India
The amended notification exempts various categories of polyethylene materials, including low-density polyethylene extrusion (LDPE) coating, LDPE film grades (blown/ cast) or pharma, linear low-density polyethylene (LLDPE) butene grades, LLDPE hexene/ octene grades, etallocene polyethylene grades, base resins of power cable, jacketing and other applications, as well as compounds for cable jacketing/ sheathing/ polyethylene-80 and polyethylene-100 (black and pigmented)/ reinforcement fillers from mandatory quality norms. Most of these value-added products are imported to meet consumer demand in India.
The notification reads, “The central government, after consulting the Bureau of Indian Standards (BIS), is of the opinion that it is necessary so to do in the public interest, hereby makes this order to amend the Polyethylene Material for Moulding and Extrusion (Quality Control) Order, 2022. Nothing in this order shall apply to the aforementioned specialized polyethylene category listed above of polyethylene material for moulding and extrusion. This order may be called the Polyethylene Material for Moulding and Extrusion (Quality Control) Amendment Order, 2024, and will come into force on the date of its publication in the official gazette, i.e. January 5, 2024.”
Earlier in 2022, the BIS marked primary LDPE, LLDPE, and HDPE under the mandatory quality norms. The premier industry body All India Plastic Manufacturers Association (AIPMA) had earlier urged the government to exempt these products from mandatory quality adherence, arguing, “These are primarily imported products and cannot be substituted with domestic materials.”
Furthermore, plastic manufacturers have urged the government to extend exemptions on the packaging materials used in the automobile industry. Although the government has not issued any relief to the industry, producers are hopeful for a favourable decision in this regard shortly. According to industry sources, domestic and overseas producers of these products have not received any certificate from the BIS yet. “Hence, the implementation of the mandatory BIS quality norms on these products could have been counter-productive for the Indian industry.”
| India’s polyethylene industry scenario (‘000 tonnes) |
| Categories | 2020-21 | 2021-22 | 2022-23 | 2023-24(e) | 2024-25(e) |
| Capacity | 5860 | 5860 | 5860 | 7110 | 7110 |
| Production | 5646 | 5390 | 4648 | 6760 | 6757 |
| Imports | 1287 | 1476 | 2410 | 1254 | 1615 |
| Exports | 956 | 488 | 163 | 179 | 200 |
| Apparent demand | 6076 | 6448 | 6846 | 7411 | 7965 |
| Demand growth (%) | 8.3 | 6.1 | 6.2 | 8.3 | 7.5 |
Sources: Chemicals & Petrochemicals Manufacturers’ Association of India and Polymerupdate; (e)=Estimated
BIS quality requirementThe BIS certification scheme is essentially voluntary. However, for a range of products, compliance with Indian Standards is made compulsory by the central government under various considerations, such as public interest, protection of human, animal, or plant health, safety of the environment, prevention of unfair trade practices, and national security. For such products, the central government directs mandatory use of Standard Mark under a Licence or Certificate of Conformity (CoC) from BIS through the issuance of Quality Control Orders (QCOs).
Escalating demandIndia’s polyolefin demand witnessed a 6 percent growth in the financial year 2022-23 because of a revival in the domestic consumers’ sentiment, especially in rural markets where the growing agriculture economy and demand from infrastructure sectors encouraged buyers to take advantage of the low price and fill the past two years’ pandemic-related consumption gap. As per an estimate by the apex industry body the Chemicals & Petrochemicals Manufacturer’s Association (CPMA), India’s polyolefin demand was 13.4 million tonnes for the financial year 2022-23, compared to 12.72 million tonnes in the previous year.
Furthermore, India’s polyolefin demand would continue to rise to 15.4 million tonnes in the financial year 2024-25. All polyethylene registered a modest demand growth of 6.24 percent to touch 6.8 million tonnes in the financial year 2022-23. By 2025, India’s polyethylene demand is forecasted to touch 7.97 million tonnes with end-use sector demand increasing continuously.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
