Imported paper straws have cost implications for the packaged food industry

Manufacturers of small packaged fruit juices and dairy products said that imported paper straws are expected to increase their input costs but are unlikely to meet the industry’s requirements, hence they have asked for an extension of the July 1 deadline, for implementing the ban on plastic straws.

Arguing that there is no viable alternative at present, industry body Action Alliance for Recycling Beverage Cartons (AARC) and home-grown FMCG major Dabur India said there is a need to extend the deadline by at least two-three years for a smooth transition. The government’s ban on single-use plastics, to be effective July 1, will also impact the plastic straws that are packaged with small juice and milk beverage packs sold by food companies.

Dabur India CEO Mohit Malhotra said that they have requested the government to extend the implementation date of the ban till proper infrastructure for producing paper straws locally is developed.

AARC CEO Praveen Agarwal said the ban is going to have a big impact as there are no alternatives at the moment. The industry has been working on biodegradable PLA straws as alternatives, but these are still 9-12 months away from validation. The industry is also looking to import paper straws or whatever could be imported, though there is not enough availability globally.

Production and sales will stop to a large extent if the government does not extend the deadline for the industry, which is estimated to be around Rs 6,000 crore. Also, globally, there are limited manufacturers of straw line machines, and they have long waiting periods. So despite the industry’s wanting to fast-track, it will take some time and has asked the government to give it some transition time.

We need at least two to three years for every plastic straw to be replaced by either bio-compostable or paper straws. ” Malhotra of Dabur said importing paper straws will also have cost implications for companies, which will lead to a loss of revenue for the government exchequer, and this runs contrary to the spirit of the government’s Atmanirbhar Bharat initiative.

Dairy cooperative GCMMF, which markets products under the Amul brand, on Monday said alternatives to plastic straws are 3-4 times costlier and not effective, adding that such straws do not even account for 0.1 per cent of total plastic consumption. GCMMF managing director R. S. Sodhi suggested adopting extended producer responsibility for using straws with milk beverage packs. “Straws are not even 0.1 percent of total plastic consumption. The alternatives are at least 3-4 times costlier and not as effective as straw. We are ready to adopt Extended Producer Responsibility (EPR) for plastic straws, “said Sodhi.

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