The government has launched an “affordable plastic bag” program to stabilize local supply, as heightened Middle East tensions have caused fluctuations in the petrochemical raw materials market and led to supply constraints for some materials and higher prices, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday.
Under the program, state-run CPC Corp, Taiwan (CPC, 台灣中油) would allocate 5,000 tonnes of additional ethylene to produce affordable plastic bags to meet demands from local shopping areas, night markets and consumers, Kung said after meeting representatives from 30 local commercial districts at the ministry in Taipei.
CPC on Wednesday last week started to supply the 5,000 tonnes of additional ethylene from the No. 4 naphtha cracker in Kaohsiung to Formosa Plastics Corp (台灣塑膠) to produce polyethylene, which would be supplied to manufacturers of plastic bags.
Photo: CNA
Upstream ethylene production by CPC is expected to increase to 79,000 tonnes this month from 60,000 tonnes last month and reach 90,000 tonnes next month, the Ministry of Economic Affairs said.
As for the supply of midstream polyethylene, the ministry said that CPC would increase production from 22,000 tonnes last month to 27,500 tonnes this month, with a further increase next month.
The ministry expects the higher output of such materials to help stabilize plastic bag supply and prices, Kung said.
While no fixed reference prices would be set for plastic bags, suppliers are expected to reflect CPC’s material costs within a reasonable range to prevent inappropriate price manipulation, Kung said.
The ministry has reviewed distribution channels nationwide and activated response measures to stabilize inventories at major retail chains and ensure stable consumer access, he said.
Commercial district representatives said during the meeting that plastic bag supply remains broadly stable, but shortages and rising prices have been reported in some retail channels, rural areas and for some specialized products.
Chiayi City Commercial District Development Association head Liu Ching-tsung (劉慶宗) said shortages appear more severe in southern Taiwan, with shelves still empty at major plastic bag suppliers.
Commonly used plastic bags — including smaller bags and inner bags — are in particularly short supply, he said.
While commercial district representatives gave their support to the government’s plastic bag program to ease panic buying, they also suggested that the government introduce incentive measures to encourage consumers to reduce use of plastic bags, bring their own shopping bags or practice recycling amid the current shortage, which would help balance people’s needs with environmental sustainability.
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