Rise in cost of polypropylene sacks hits rice millers, traders in Tiruchi

Rising polypropylene sack costs amid crude oil fluctuations are impacting rice millers and traders in Tiruchi, increasing packaging expenses.

A sharp rise in the cost of polypropylene sacks used for packing rice, linked to fluctuations in crude oil prices amid the crisis in West Asia, has affected rice mill owners and traders in the region.

The sacks, made from polypropylene, a petroleum derivative, have become costlier in the past two weeks as polymer prices increased. Traders and mill owners pointed out that many small plastic-processing units use LPG or industrial gas for heating and operating processing machines, and disruptions in supply have added to production costs.

Rice mill owners say the prices of packing sacks used for packaging rice have increased significantly within a short span. “Sacks that were earlier available for around ₹10.50 are now being sold for ₹15 to ₹16. A 26-kg low-quality sack that cost about ₹11.50 has risen considerably,” said R.A. Raguraman, proprietor of Arumugam Modern Rice Mill in Adavathur near Srirangam.

He said medium-quality sacks had become costlier by about ₹2.50 in recent days while high-quality export-grade sacks that earlier cost around ₹22 were now being sold for nearly ₹24. “The price fluctuations have happened within the past two weeks,” he said.

Rice traders pointed out that packaging materials were usually sourced from manufacturing hubs such as Sivakasi in Tamil Nadu and Hyderabad.

“If we purchase around 10,000 sacks, the increase means we are paying more than ₹25,000 as additional expenditure,” said a paddy dealer in Tiruchi and added that even low-quality polythene packing sacks had risen from about ₹11 to nearly ₹15 during the same period.