India extended the timeline to implement quality control on PE, EVA.
The decisions came as many overseas suppliers have not completed the rigorous application process, including plant auditing, in order to obtain the B.I.S mark
The Indian government on 26 September 2023 released an official statement postponing the implementation of quality control on all locally produced and imported PE and EVA cargoes under the Bureau of Indian Standards Act, 2016 (BIS).
In the case of PE, the implementation date was pushed back by three months, to 5 January 2024.
For EVA, the implementation date was set six months later, on 3 April 2024.
The decisions came as many overseas suppliers have not completed the rigorous application process, including plant auditing, in order to obtain the B.I.S mark to be printed on the packaging of the products. Without the official Standard Mark, the Indian Customs could deny the entry of the cargo into the country.
As reported earlier, overseas suppliers might need up to six months to obtain the B.I.S license.
Indian buyers have repeatedly submitted requests for an extension since August 2021. Market representatives have raised concerns that some of the specialized grades are not available locally, but the demand is too small to incentivize overseas sellers to go through with the application process, resulting in supply shortages.
In the past quarter, Indian customers rushed to stock up on materials fearing supply disruptions. The extension of the grace period means sellers could continue to supply normally in the next three months for PE and six months for EVA. Many buyers are stuck with high inventories, mediocre demand, and steady availability. Within this week, a key local producer in India has cut HDPE prices by INR5000/ton ($60/ton) and LLDPE film by INR4500/ton ($54/ton).