BackParle Agro urges government to postpone ban on plastic straws
The available capacity to provide a replacement for plastic straws with PLA straws or paper straws by a local Indian manufacturer is 1.3 million straws per day as opposed to the actual requirement of approximately 6 million straws per day.
PremiumNEW DELHI: Beverage maker Parle Agro on Thursday urged the government to extend the ban on usage of plastic straws by six months to ensure packaging companies are better prepared to switch to alternatives.
“While Parle Agro endorses the government led ban on the use of single-use plastic products including plastic straws, their plea is to postpone the implementation of the injunction by six months," the maker of Frooti and Appy Fizz beverages said in a statement.
The ban on plastic straws, part of the government's broader effort to reduce usage of single-use plastic in the country, is set to be effective 1 July, coinciding with peak summer season that sees brisk sales of beverages.
Packaging companies will need to invest in the right infrastructure to accommodate changes which will require time to ensure the alternative is appropriate and cost effective, especially during inflationary times. Currently, there is no local manufacturer who can accommodate the demand, the company said.
It added that importing straws is an expensive affair, and could affect the affordability of ₹10 and ₹20 packs that account for a large part of beverage sales. For instance, for Parle Agro, half the company’s turnover comes from sales in rural markets from such strategically priced product packs.
Companies need at least six to eight months to make the necessary changes in technology, and sourcing and ensure smooth transition to environment friendly options of paper or PLA, it added.
“As a leading beverage player in the Indian market, Parle Agro has always invested in initiatives and projects with keen focus on sustainability. This includes large scale plastic recycling initiatives in partnership with national bodies to collect and recycle 100% of its PET bottle waste," the company said.
India produces and sells a total of 6 billion packs of paper-based beverage cartons with integrated plastic straws per annum. Citing industry data the company said the available capacity to provide a replacement for plastic straws with PLA straws or paper straws by a local Indian manufacturer is 1.3 million straws per day as opposed to the actual requirement of approximately 6 million straws per day.
“The hasty ban will negatively impact the industry and overall businesses of numerous players in the FMCG and beverage segment," the company said.
Several large beverage manufacturers have been urging the government to exempt straws from plastic ban that they said could affect sales of their small-sized packs that help drive volumes.
“We support the noble intention of the government to ban the use of plastic straws. To implement the changes, we need a postponement of the ban by six months which will allow packaging companies in building the right infrastructure needed to source locally. Even getting approvals from regulatory bodies after appropriate testing to manufacture PLA straws will require time. While the transition process has already begun, the short deadline is a matter of great concern." said Schauna Chauhan, CEO, Parle Agro.
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