The canning market in India is under threat. This sentence may seem exaggerated, but the truth is that it is not. Faced with a compulsory certificate that the Ministry of Steel of India (BIS QCO – already explained in other editions of Mundolatas) requires producers of major inputs such as tinplate and tin-free steel, to name a few, exporting companies to that country, far from adapting to this standard, have said “no”. India is a small market for tinplate, so international suppliers have decided not to take on the costs involved in this Bis Certificate and withdraw: they are no longer shipping tinplate. This is resulting in shortages in the market, but also in higher prices.
The industry is understandably concerned and is awaiting a response from the Indian government to its demand for the withdrawal of such certification.
According to Kumud Das, a contributor to Indian media outlet The Hans India, the resistance of the metal packaging industry against the supply-demand gap, i.e., the industry needs around 7 lakh tonnes of material, while the domestic production is around 4.50 lakh tonnes. Given the demand and growth of around five percent, the industry meets its import requirements.” So why this imposition? With international suppliers rejecting this regulation, the tinplate and tin-free steel market is leading to a monopoly of two Indian manufacturers. This is what has brought a 7% – 8% increase in prices.
The change in consumer habits brought about by the Covid pandemic, coupled with an increase in India’s population and income levels, has led to an increase in demand for certain pharmaceuticals and food and beverages. Notes Das, “The end-user of such products include food, beverages, healthcare, cosmetics, personal care, paints, home care and industrial segment. According to reports from the retail association, the current situation due to Covid-19 is creating more opportunities for packaging food products, disinfectants and sanitizers in aerosol cans for longer shelf life. But it is enough to see, if the final consumer will be able to buy them…
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Much of the material imported was secondary grade, so will never meet the Indian Standards, or any other prime material standard. There have been problems in using this secondary material for applications such as food contact, so rightly it was banned from these uses. The main problem for the users of this material is that prime material meeting the standards naturally costs more, upsetting their business plans. There is plenty of capacity for tinplate to meet all India’s needs, as the main suppliers are exporting significantly, and both have announced major expansion plans.