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The Metal Container Manufacturers’ Association has called on the Steel Ministry to delay the deadline of implementation of the BIS norms till March 31, 2022 and consider ISO certification in addition to BIS for sourcing raw materials.
The Steel Ministry has been requested to allow use of materials that are aligned to ISO. This has already been included in FSSAI order and recommended by the MSME Ministry.
The ₹10,000-crore metal container packaging industry is in a state of quandary over shortage of raw material used for packaging food and other items that have resulted in increase in prices of packaging items.
In the past, representations were made to Steel Minister Dharmendra Pradhan, wherein the association requested the Steel Ministry mandate directing to use of BIS certified steel be put off till March 31, 2022.
Sanjay Bhatia, President of the Metal Container Manufacturers Association and Director of Hindustan Tin Works Ltd, said the steel and steel products quality control order dated July 17, 2020, which directs usage of BIS certified raw materials, has had a major impact on the country’s metal container packaging industry. This has resulted in shortage of raw material as imported inputs do not have BIS certification.
While the industry requires about 7 lakh tonnes of raw material, about 4.5 lakh tonnes is produced by the Tinplate Company, JSW Steel, the rest is imported. Since the order directly impacts imports, there is raw material shortage and this has resulted in upward price revisions, he told BusinessLine .
“Following representations by the association, the government which had ordered that this will come into implementation from January 17, had postponed it till April 17, 2020. However, we believe that the industry needs some more time and it would be better if this mandate is put off till March 31, 2022,” he said.
Similar orders
He said similar quality control orders had been brought in 2008, 2015 and 2017, but were later withdrawn keeping in mind the practical difficulties in implementation. The tin containers and closures are used for packing of edible and non-edible products. And the tin-free steel is mainly required to manufacture crowns, closures and components used to seal bottles for soft drink beer, juices and flavoured milk.
In order to ensure use of prime tinplate for food products, FSSAI had issued a notification on December 24, 2018 where they have allowed use of equivalent International Standards for tinplate and and tin-free steel along with relevant BIS standard as they were considered to be equivalent International Standard.
Pandemic pain
Due to the Covid-19 situation and ban on international travel as well pandemic threat, the foreign tinplate mills are not in a position to get the relevant BIS licence. Therefore, ISO certification could be considered in addition to BIS-like FSSAI, the association suggested.
The industry is struggling to reset their business and facing huge liquidity crisis. It felt that the government should seriously consider the setting up a development fund under the Atmanirbhar Bharat initiative to boost local manufacturing, import substitution and exports from India.
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