New Delhi With the deadline for a nationwide ban on single-use plastics fast approaching, beverage manufacturers and industry associations have once again asked the government to gradually phase out plastic straws for small packs of juices, fizzy drinks and milk-based drinks. Petition has been filed for permission to evict.
Companies said imposing restrictions from July 1 would create several challenges such as supply crunch and arranging for alternative items, such as imported paper straws, as well as increasing costs.
Action Alliance for Recycling Beverage Cartons (AARC), representing Coca-Cola India, PepsiCo India, Parle Agro, Dabur, Diageo and Radico Khaitan, said the change could hurt many people. 3,000 crore in sales for the industry.
Beverage companies are looking to import paper straws as India does not have enough capacity to manufacture them. In addition, the raw material for paper straws must also be imported.
Parle Agro said it had placed an order to import paper straws to meet the deadline, but at an “excessive cost”, noting that a plastic straw costs 15 paise, while a paper straw costs 40 paise. There could be money. “It is not sustainable. Higher lead times are required for paper straw manufacturers. Also, shipping disruptions will delay deliveries,” said Shauna Chauhan, chief executive officer of Parle Agro, which manufactures Frooti and Appy Fizz.
Considering that smaller packs account for 40% of the sales, Parle is seeking an extension of the time frame for capacity building by six months for making options locally. “This expansion will ensure that all straw manufacturers in India can build capacity to supply to beverage companies,” he said.
A Coca-Cola India spokesperson said that it is working with all stakeholders. “As things progress and we have more clarity, we will be able to share more information.”
Some manufacturers are also considering removing straws from smaller packs, said the people, requesting anonymity.
AARC CEO Praveen Agarwal expects 10-15% of the stock to use non-plastic straws by the end of July. “In the first month of the ban, the supply will be minimal due to severe disruptions,” he said.
“We are asking for a gradual change. We are asking for 18 months, during which we will see a gradual transition to an alternative to plastics,” Agarwal said.
According to CK Jaipuria, chairman, Pearl Beverages, it has ordered paper straws from China and Indonesia, but its cost is high. “There is little scope to absorb prices; This worries the manufacturers. We are asking for time till we are able to build capacity in the country. It is not that we are not trying to build capacity, but it will take at least 16-18 months. Some capacity will come before the end of the year.”
Dabur India chief executive Mohit Malhotra said that it is working on import of paper straws. “Since there is no sustainable alternative to integrated plastic straws in India, we will import paper straws, which will result in cost impact on companies and loss of revenue to the exchequer,” he said.
“The transition will burden companies with additional costs in times of inflation”, however, Malhotra did not specify whether Dabur plans to hike prices. “While some state regulators have permitted the use of biodegradable plastic straws and paper straws, the infrastructure to mass-produce these straws does not exist in India. Therefore, we would urge the government to continue with the use of paper straws at the local level. Let us extend the implementation of the ban until the proper infrastructure for production is developed.”
In April, packaging firm Uflex said it was setting up a paper straw manufacturing unit in Sanand, Gujarat. “Interest from companies is very high. We are building infrastructure and capacity for paper straws. The first lot will be ready by the first week of July,” said Jivraj Pillai, joint president of packaging and new product development, Uflex .