Plastic prices rise again, impact likely on packaged goods and healthcare
Price increases linked to rising feedstock costs and supply disruptions tied to tensions in West Asia
- Mar 27, 2026,
- Updated Mar 27, 2026 6:42 PM IST
A fresh round of polymer price hikes is set to raise costs for a range of everyday products, from packaged food and bottled items to household plastics, even as manufacturers are still adjusting to earlier increases this month.
Indian Oil Corporation has increased prices of key plastics effective March 25, raising polypropylene (PP) by about ₹4,000 per tonne for homopolymer and ₹7,000 per tonne for copolymer, while polyethylene (PE) prices have also gone up by around ₹7,000 per tonne.
Business Today has reviewed the IOC price notification confirming these revisions. The price increases are linked to rising feedstock costs and supply disruptions tied to tensions in West Asia, which have affected petrochemical supply chains and logistics. Industry executives say the impact is now flowing through to domestic polymer prices.
These materials are widely used in packaging, containers, buckets, bottles and a range of daily-use products. Industry players say that while companies may not immediately increase retail prices, the higher input costs are typically passed on over time, either through price hikes or smaller pack sizes. This is especially relevant in India, where plastics are widely used in low-cost packaging for everyday consumer goods.
The latest increase comes after a series of sharp revisions earlier this month. Polymer prices were raised multiple times through March, with polypropylene increased by ₹2 per kg on March 1, followed by ₹6 per kg on March 3 and ₹15 per kg on March 6. By March 11, polypropylene prices had risen by as much as ₹23 per kg, while polyethylene grades such as LLDPE and HDPE saw cumulative increases of ₹20,000 to ₹24,000 per tonne over the same period. PVC prices were also raised by about ₹13,000 per tonne during the month. Taken together, plastic input costs have risen sharply in recent weeks, putting pressure on manufacturers even before the latest round of hikes.
The impact is not limited to consumer goods. The healthcare sector is also exposed, as polymers are used in syringes, IV bottles, diagnostic kits and pharmaceutical packaging.
“Amid the Strait of Hormuz blockade, medical device input costs have surged 50–60% for plastics and over 20% for packaging and self-generated power, eroding margins on essentials like syringes and gloves. There are no shortages yet, and prices have been raised by 10–20%, but continued weekly hikes may demand further revisions in April,” said Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD).
He added that the industry has sought government support, including reduction in inland freight costs, faster GST refunds and temporary relief on duties and taxes on plastic inputs to ease pressure on manufacturers.
At the manufacturing level, the pressure is already affecting output and supplies. “The medical devices manufacturing industry, nitrile gloves manufacturing in particular, is facing a very challenging situation due to acute shortage and high costs for essential raw materials like nitrile butadiene rubber latex (NBR), driven by the ongoing West Asia conflict. This is directly impacting the availability and pricing of essential medical disposables like nitrile gloves that hospitals rely on every day,” said K. Anindith Reddy, Co-Founder and Managing Director, Wadi Surgicals Pvt Ltd.
He added that supply disruptions are worsening the situation. “Our plant at AMTZ, Visakhapatnam, relies on a continuous LPG supply for production. We are facing constant shortages and supply interruptions, which has forced us to slow down production and reduce output. This is leading to higher glove prices for hospitals and real-time shortages.”
For consumers, the effect may show up gradually. Companies tend to absorb part of the cost initially, but repeated increases make that difficult to sustain. Over time, this can translate into higher prices for packaged goods, plastic items and possibly even healthcare consumables. With another round of hikes coming in after an already sharp rise this month, industry players expect cost pressures to continue in the near term.
A fresh round of polymer price hikes is set to raise costs for a range of everyday products, from packaged food and bottled items to household plastics, even as manufacturers are still adjusting to earlier increases this month.
Indian Oil Corporation has increased prices of key plastics effective March 25, raising polypropylene (PP) by about ₹4,000 per tonne for homopolymer and ₹7,000 per tonne for copolymer, while polyethylene (PE) prices have also gone up by around ₹7,000 per tonne.
Business Today has reviewed the IOC price notification confirming these revisions. The price increases are linked to rising feedstock costs and supply disruptions tied to tensions in West Asia, which have affected petrochemical supply chains and logistics. Industry executives say the impact is now flowing through to domestic polymer prices.
These materials are widely used in packaging, containers, buckets, bottles and a range of daily-use products. Industry players say that while companies may not immediately increase retail prices, the higher input costs are typically passed on over time, either through price hikes or smaller pack sizes. This is especially relevant in India, where plastics are widely used in low-cost packaging for everyday consumer goods.
The latest increase comes after a series of sharp revisions earlier this month. Polymer prices were raised multiple times through March, with polypropylene increased by ₹2 per kg on March 1, followed by ₹6 per kg on March 3 and ₹15 per kg on March 6. By March 11, polypropylene prices had risen by as much as ₹23 per kg, while polyethylene grades such as LLDPE and HDPE saw cumulative increases of ₹20,000 to ₹24,000 per tonne over the same period. PVC prices were also raised by about ₹13,000 per tonne during the month. Taken together, plastic input costs have risen sharply in recent weeks, putting pressure on manufacturers even before the latest round of hikes.
The impact is not limited to consumer goods. The healthcare sector is also exposed, as polymers are used in syringes, IV bottles, diagnostic kits and pharmaceutical packaging.
“Amid the Strait of Hormuz blockade, medical device input costs have surged 50–60% for plastics and over 20% for packaging and self-generated power, eroding margins on essentials like syringes and gloves. There are no shortages yet, and prices have been raised by 10–20%, but continued weekly hikes may demand further revisions in April,” said Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD).
He added that the industry has sought government support, including reduction in inland freight costs, faster GST refunds and temporary relief on duties and taxes on plastic inputs to ease pressure on manufacturers.
At the manufacturing level, the pressure is already affecting output and supplies. “The medical devices manufacturing industry, nitrile gloves manufacturing in particular, is facing a very challenging situation due to acute shortage and high costs for essential raw materials like nitrile butadiene rubber latex (NBR), driven by the ongoing West Asia conflict. This is directly impacting the availability and pricing of essential medical disposables like nitrile gloves that hospitals rely on every day,” said K. Anindith Reddy, Co-Founder and Managing Director, Wadi Surgicals Pvt Ltd.
He added that supply disruptions are worsening the situation. “Our plant at AMTZ, Visakhapatnam, relies on a continuous LPG supply for production. We are facing constant shortages and supply interruptions, which has forced us to slow down production and reduce output. This is leading to higher glove prices for hospitals and real-time shortages.”
For consumers, the effect may show up gradually. Companies tend to absorb part of the cost initially, but repeated increases make that difficult to sustain. Over time, this can translate into higher prices for packaged goods, plastic items and possibly even healthcare consumables. With another round of hikes coming in after an already sharp rise this month, industry players expect cost pressures to continue in the near term.