Speaking to Rajesh S Kurup of The Financial Express, Rajendra Somani, the president of the association, who is also the managing director of Oriental Containers Ltd., a leading tin packaging manufacturer, says that the tin sector is facing severe problems at present and would cease to exist unless and until war-footing measures are taken to protect it. Cutting down customs duty from the present 38.5 per cent to zero, and enforcing mandatory use of tin containers in edible and petroleum sectors are the measures suggested by him to revive this ailing industry.Excerpts:

About tin as a packaging material

Tin is the most sturdy packaging material available in the country. This protects the odour and quality, apart from retaining the aroma of the products, especially in case talcum powder or food materials. Tin can withstand the transport hazards, resulting in the consumer getting the product in its finest form. Tin is also pilferage proof and attractive, when compared to plastics.

About plastic substitutes replacing tin and metal packaging materials in the country

The plastic sector is the biggest competitor to this industry at present, especially plastic substitutes. The prices of plastics and polymers fell all over the world in the last couple of years, enabling them to make deep inroads into the packaging industry. The fall in prices, coupled with the availability of raw materials, had helped plastic to substitute metal packaging in the country, especially tin packaging.

At present, almost all edible oils and petroleum products areshipped in plastic containers contrary to the conventional method of packing it in tin materials.

Your comments on manufacturers substituting plastics and flexi-packages vis-a-vis tin and other metals in India

Tin containers and packaging materials are the most sturdy kind of packages available in the country, when transportation, sturdiness, adulteration and pilferages are taken into consideration. But, price is the most sensitive point for the buyer and the manufacturer has to opt for cheaper modes of packaging in order to be competitive in the market. Indian market being price sensitive, the customers in the country opt for the immediate gain. For example, till recently a leading brand of talcum powder was shipped in tin containers, but has of late shifted over to plastic containers. Plastic containers are not foolproof, they can be cut open, filled with cheap substitutes and can be marketed again under the same brand name.

On the growth of tin packaging industry depending on that of thefood packaging sector in the country

All industries in the country are directly or indirectly dependent on agriculture, which is the main stay of the majority of Indians. The lack of proper incentives and policies in the country, has hampered the growth of the agriculture sector, which in turn dampened all other industries in the country, not to mention the food processing and packaging sector.

As far as the metal packaging sector in the country is concerned, especially for tin packeteers, I think this sector is the last resort. Even though, the food sector in the country is in its infancy, if this grows by leaps and bounds, the metal packaging sector in the country will also grow along with it. For, tin containers being the best option for food packaging, the latter will have to depend heavily on the former.

About your request to the government for a separate cell

The metal and tin packaging sectors in the country fall under the steel ministry and are treated on par with the major steelcompanies in the country. This is quite unfortunate because steel is used for a multitude of purposes ranging from automobile manufacturing to building constructions. It should be noted that the need of these sectors are different, so should be the policies and duties. We have made repeated requests to the government to create a separate cell, which would enable the smooth functioning of this sector. Even though, we have represented our case in at least three meetings, apart from writing to the concerned authorities, nothing has been done to save this industry. For instance the floor price structure. Drastic steps should be immediately taken to save this industry, which has been in a crippled state for the last 20 years.

About your suggestions that would save this ailing industry

Earlier, the government had issued a notification that cement should only be packed in jute bags. This was issued to protect the jute industry in the country. Similarly we suggest that the government should issue orders ornotifications that all petroleum products and edible oil should be packed only in tin or metal containers. Another suggestion we have is that the government should reduce the customs duty from the present level of 38.5 per cent to zero level, at least for the next three years. With 38 per cent customs duty, plus another 16 per cent a small scale manufacturer of tin containers cannot simply survive.

About the small players of this sector in the country

At present, there are only a few small players of this sector in the country. There would be only one or two in every city, catering to certain small sectors in a daring attempt to stay buoyant. If these conditions prevail, it is really sad to mention that in the next three years time these small players will have to close down.