Leading beverage companies, including Coca-Cola, PepsiCo, and Bisleri, are contemplating legal action against the government’s April 1 deadline to implement a mandate requiring 30% recycled PET (polyethylene terephthalate) in packaging for food-grade products. The industry cites a lack of infrastructure, insufficient recycling capacity, and increased costs as major challenges in meeting the deadline.
The mandate, issued over two years ago by the Ministry of Environment, Forest & Climate Change, applies to manufacturers of soft drinks, water, and juices that use PET bottles. With the deadline fast approaching, industry executives argue that the current recycling infrastructure is inadequate to meet the 30% target.
A senior executive from a major beverage company stated that legal recourse, including seeking an anticipatory stay, might be necessary if the deadline is not extended. The executive emphasized that capacity expansion for recycling facilities is a long-term process, taking two to three years, and the timing of the mandate is particularly challenging ahead of the peak summer season.
PET bottles account for approximately 70% of beverage packaging in India. They favored for their convenience and cost-effectiveness compared to glass bottles and cans. However, the industry faces significant hurdles in sourcing food-grade recycled PET (rPET). Currently, only five plants in India are approved by the Food Safety and Standards Authority of India (FSSAI) to produce rPET suitable for food contact, with a combined capacity meeting just 15% of the average demand.
Angelo George, CEO of Bisleri International, highlighted the impracticality of implementing a 30% recycled plastic mandate at this stage. He suggested starting with a 10-15% obligation initially, gradually increasing as FSSAI-approved rPET capacities expand. George also pointed out that the Bureau of Indian Standards (BIS) technical standards for rPET are still in the draft stage, further complicating compliance.
Industry executives warned of potential shortages of PET bottles, a 30% increase in production costs, and the risk of smaller companies resorting to uncertified recyclers, compromising on quality. They urged the government to push back the deadline and provide incentives, such as tax breaks and capital subsidies, to encourage the establishment of new recycling facilities.
A former senior official from the Ministry of Food Processing Industries echoed these concerns, stating that the private sector lacks sufficient incentives to invest in recycling infrastructure. Unlike other countries where governments actively support third-party recycling plants, India’s current policy framework does not offer similar benefits.
While the move to promote recycled PET is seen as a positive step toward reducing virgin plastic consumption, the industry insists that a more phased approach is necessary to ensure a smooth transition. As the April 1 deadline looms, beverage companies are intensifying their efforts to seek relief, with legal action remaining a last resort if their concerns are not addressed.