Companies scramble to switch to paper as plastic straw ban looms
As per industry sources, most companies are importing these paper straws from Indonesia, with very few other alternatives available. Import of paper straws, as against the integrated plastic straws has more than tripled the costs of straws for most companies.
FMCG companies, especially those selling beverages, have started replacing plastic straws on tetrapacks of juice boxes with imported paper straws as they rush to comply with the ban on some single-use plastic products that comes into effect on July 1.
On August 13, 2021, the government notified the Plastic Waste Management Amendment Rules, 2021, which prohibit the manufacture, import, stocking, distribution, sale and use of various single-use plastic products from July 1, 2022. The list includes ear buds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, polystyrene (thermocol) for decoration, plates, cups, glasses, cutlery such as forks, spoons, knives, straw, trays, wrapping or packing films around sweet boxes, invitation cards, and cigarette packets, plastic or PVC banners less than 100 micron and stirrers.
This includes the plastic straws that come attached to tetra juice boxes such as Frooti, the smaller packs of Real juice, Amul Lassi, among others. The FMCG industry reached out to the government over the past year, urging for a delay or an extension in the implementation of the ban, but in vain.
Also read:
Their argument was that this ban would potentially disrupt the industry as the smaller beverage packs that come with these straws make up 40-60 percent of the beverage portfolios of some of these companies.
However, with no relief coming from the government, companies such as Parle Agro and Dabur have replaced plastic straws with imported paper straws, and are also scrambling to develop domestic manufacturing capabilities.
“Our manufacturing locations would be starting with biodegradable straws as per new guidelines and time frame. As part of our transition, we will have to import paper based straws and then move to PLA based straws. This will commence once all the machineries of our business partners for manufacturing PLA straws are installed and commissioned which will take a few months. We have created infrastructure for the same by developing many local MSMEs as business partners to support us and cater to our volume of biodegradable straws,” Schauna Chauhan, CEO of Parle Agro said.
Dabur, which sells smaller packs of Real juices with these straws, has said that it has already commenced production of Real juice packs with integrated paper straws. “We are committed to meeting the regulations and will ensure that all packs come with integrated paper straws,” Shahrukh Khan, Executive Director-Operations of Dabur India said.
As per industry sources, most companies are importing these paper straws from Indonesia, with very few other alternatives available. Import of paper straws, as against the integrated plastic straws has more than tripled the costs of straws for most companies.
In addition, global supply, companies said, is limited and the current availability of paper straws will only make up for 10-15 percent of the industry demand.
While companies had been flagging unavailability of plastic straws, the Indian Paper Manufacturers Association (IPMA) said in a statement earlier this month that India has enough capacity and the technological know-how to manufacture paper straws in the country.
“A wrong impression is being created by some in the general public that presently there is no Indian paper mill that can manufacture the required paper for making paper straws. Any additional paper requirement for making paper straws can also easily be met by Indian paper mills,” A S Mehta, President of IPMA, said in the statement.
First Published: Jun 30, 2022 7:20 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Repolling underway at one polling booth in Chamarajanagar LS segment in Karnataka
Apr 29, 2024 10:32 AM
2024 Lok Sabha Elections | What does a low voter turnout indicate for NDA and I.N.D.I.A Bloc
Apr 29, 2024 5:48 AM
'Borrowed' leaders: Congress hits out at AAP for not fielding their own candidates in Punjab
Apr 28, 2024 9:53 PM
EC asks AAP to modify election campaign song and Kejriwal's party is miffed
Apr 28, 2024 9:25 PM