The import of paper straws may increase prices for prepackeaged beverages

FMCG companies that sell juices and milkshakes in Tetra packs with attached straws are opting for the only other viable option of paper straws, with barely two and half months left to kickstart the plastic ban drive.

The Government’s ban on single-use plastic from July 1 has forced the fast-moving consumer goods (FMCG) companies that sell juices, milk, and shakes in small tetra packs with a plastic straw to shift their focus to paper straws. Since paper straw manufacturing is still a small specialized market, these FMCG companies will be required to import the paper straw for the time being. This will rack up prices and make the products more expensive. 

Since the plastic ban has had a direct hit on the FMCG manufacturers, they have requested for the deadline of July 1 to be extended for imposing the ban on plastic straws. Manufacturers of small packaged fruit juices and dairy products have stated that though imported paper straws will increase their manufacturing cost, it will not help them meet the industry standards.

Dabur India, the FMCG major and Industry body Action Alliance for Recycling Beverage cartons (AARC), has appealed for the deadline of July 1 to be extended by a minimum of two and a maximum of three years for a streamlined phase-out. Dabur CEO Mohit Malhotra has stated that the ban will have a huge impact due to the availability of limited alternate options available currently.

Before scraping the plastic straws, the industry has to figure out replacement substitutes. FMCG has been working on biodegradable plastic straws, which can be good alternatives to the currently used plastic straws as they are environmentally friendly.

Biodegradable materials like paper are non-toxic and reduce a carbon footprint. However, the implementation and validation may take between nine to twelve months. The FMCG is also looking for other options like paper straws that need to be imported, but global availability is also in scarcity right now. AARC CEO Praveen Agarwal states that the production and sales will halt if the deadline is not extended by the Government, and the estimated loss will be approximately Rs 6,000 crore.

Switching from plastic straws to paper straws is expensive but an environmentally friendly option. Plastic straws are being banned by the Government as they are a menace to wildlife, human well-being, and the environment. Plastic straws are not recyclable and are usually dumped in landfills which cause land waste or pollution and are virtually impossible to decompose. They break into microplastics which contaminate our ecosystem.

Paper straws break down into natural materials that leave a smaller footprint on the earth. They are easily compostable and hence cause minimal to no harm to the ecosystem. Paper straws made of pure paper will be biodegradable if left for some time with nature.

Malhotra from Dabur expressed that importing paper straw will have cost ramifications on companies and will lead to revenue loss for the government treasury. This will prove to be in direct contrast to the spirit of the Government’s Atmanirbhar Bharat initiative.

AARC CEO Agarwal said that even though the industry supported the Government’s initiative, there could be a difference between loose straws and packaged integrated straws as the industry picks up and reuses more than 50% of the cartons and straws and is already committed to increasing it to 70% the following year.

GCMMF, the dairy co-operative that buys and sells products under the brand Amul, said that the substitutes for plastic straws are uneconomical. It also added that such straws account for less than 0.1 % of the total plastic consumption.

Following the new regulations, the manufacturers, importers, and brand owners have to give details of reuse certificates only from the registered recyclers together with the info of the sent quantity for end-of-life disposal latest by June 30 of next financial year, during the online filing of the annual returns.

Realistically, from a consumer standpoint, plastic has been a menace to society and human health. The packing industry must adopt these futuristic, green and recyclable options as quickly as possible while figuring out how to not pass the increase in costs to the average consumer. Climate change and pollution are real threats to human civilization in total which cannot be weighed against temporary inconveniences or capital losses. 

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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Thanks, it’s a great thing that this article suggested the importance of Storing Food without Plastic.

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