Dead stock of plastic worries MSMEs

In the case of the molds – he brought for lakhs of Rupees – he plans to sell them in the market as scrap. “I spent around Rs 2-4 lakh on the molds, but now I will get Rs 7,000 if I sell it for scrap value.”

Maharashtra was among the few states that had banned some single-use plastic even before the central government had called for a single-use plastic ban. But many small businesses still managed to remain afloat as they supplied to other states that did not impose a ban on SUP.

Since 2019, many existing MSMEs in the SUP segment have slowly diversified. However, COVID had made this diversification more painful.

As per UDYAM registration of the MSME ministry, there were around 88,000 MSMEs units engaged in single-use plastic (SUP) products. “More than Rs 39,000 crore of investment is at stake –invested by our small and medium industries,” said Kishore Sampat, President of All India Plastics Manufacturers Association (AIPMA).  He added many of the MSMEs are paying off loans on their investment.

Adding to it, Jayesh Rambhia, Co-Chairman, Environment Committee, AIPMA commented, “When dams and airports are built, the project-affected people are compensated, we suggest the policy-affected people here as well should be compensated. If there is a change in direction of government policy, the MSMEs should not be asked to pick up the pieces.”

Just recently it was stated by a Union Minister that the plastic industry is expected to reach USD 100 billion in the next five years from USD 39 billion currently.

While the government has put a curb on imports, Kishore Sampat feels the government should at least allow some leeway in exports to clear the dead stock. He added the industry exports SUP worth Rs 25,000 crore annually. Appealing to policymakers, he said, “Companies that are exporting to other markets should be allowed to carry on their activities. Proper clarification here would be needed so that export is not hit and employment is not hampered.” However, sources confirm SUP in Special Economic Zones is still allowed.

As per law, the central government bans the manufacture, import, stocking, distribution, sale and use of identified single-use plastic items, which have low utility and high littering potential, all across the country from July 1, 2022.

The list of banned items includes:

Earbuds with plastic sticks

Plastic sticks for balloons

Plastic flags

Candy sticks

Ice-cream sticks

Polystyrene (Thermocol) for decoration

Plastic plates

Cups

Glasses

Forks

Spoons

Knives

Straw

Trays

Wrapping or packing films around sweet boxes

Invitation cards

Cigarette packets

Plastic or PVC banners less than 100 micron

Stirrers

While AIPMA supports the government’s decision to ban SUP, it expects the government to develop robust incentive-based plastic waste management.

AIPMA claims the government decided to find an easy way out to ban the product. It added that plastic pollution is not due to the pollution caused by the plastic producers but the end consumers who litter and an inadequate waste management ecosystem. Many Western Countries follow an incentive-based model which encourages consumers to dispose of plastic properly and enjoy either a monetary reward or some other incentive in return. Thus, encouraging community participation.

Sampat stressed, “India has got the world's best recycling system but they are largely informal in nature. The government will have to take a proactive step to get these informal recycling units into the formal sector.”

Meanwhile, Rambhia added, “Despite collecting taxes, the local authorities have failed to create the much-needed infrastructure and systems in place. Today, due to littering and no adequate waste management, SUP manufacturers have to suffer.”

In 2019, National Green Tribunal (NGT) pulled up 22 states for failing to submit action plans by April 30, 2019, to the Central Pollution Control Board (CPCB). Rambhia added, “The responsibility is given to the municipality and urban planning department to create infrastructure to collect the post-consumer plastic which can be recycled by the industry. But authorities have not achieved that.”

He added, “Unless we do not speed up our waste management system and make local authorities accountable for not creating the requisite infrastructure, putting an end to plastic pollution will be difficult. Unless we do not solve the waste management issue, the concerns related to waste management will not be solved soon –whether it is plastic or paper waste or any other waste.”

According to Plastic Waste Makers Index - 2021, in 2019, India generated 55.82 lakh tonnes of SUP waste, making it the third-largest generator of plastic waste.

It needs to be noted that India is home to 690 plastic waste sites, as per Global Plastic Watch (GPW) Website – a platform that maps the world’s plastic pollution in near real-time. Among those plastic waste sites, there are approximately 100 to 125 dumpsites (20 percent of the sites currently covered by GPW) that are located within 200m of a waterway and 60-75 dumpsites (or 10 percent) located within 100m of a waterway. This means a quick entry into water bodies.

Apart from the existing ban, the Plastic Waste Management Amendment Rules, 2021, also prohibits the manufacture, import, stocking, distribution, sale and use of plastic carry bags having a thickness of less than 120 microns with effect from December 31, 2022. A plastic manufacturing company proprietor said, “By increasing the thickness of the plastic bag, the producers will end up using more raw material to produce one plastic bag. But the issue of plastic littering continues. It is still not addressed.”

The  MSME ministry is engaging with the MSME units to provide technical assistance for the manufacturing of alternatives. Nevertheless, the industry feels there is a need for more and that is more to do with public awareness and encouraging appropriate waste management.