New Delhi: Expected big impact on sales, led by beverage companies amuli And speak agrohas petitioned the government to delay the ban on plastic straws which is due to take effect next month.
Dairy giant Amul, which needs around 1.2 million plastic straws every day for Rs 10 products sold in Tetrapack, has also proposed to set up its own factories to manufacture paper straws.
RS Sodhi, MD, GCMMF (Amul), told TOI, “India currently does not have any infrastructure to manufacture such volumes. Manufacturers in other markets are asking for eight times more.” “We have said that we will set up our own lines, as it is not a big cost. But it will take six months to a year.”
Similarly, Parle Agro, a major player in the category with mango drink Frooti, has sought deferment of the ban for six months to set up local manufacturing capabilities. This includes ordering machines, delivering them to vendors and obtaining authorized approvals before starting production.
Shauna Chauhan, CEO, Parle Agro said, “We have started importing paper straws to ensure that the new norms are met by its deadline. However, importing is not a sustainable option.” “Percentage increase in the cost of importing pla (Biodegradable) and paper straws have an increase of 259% and 278% respectively. The economics just don’t match for a Rs 10 product.”
Once manufacturing units are set up in India, the cost of paper straws will be almost double that of plastic straws, but the companies said they will be able to bear the cost. “The six-month extension will help straw manufacturers in India to build sufficient capacity to manufacture and supply biodegradable straws to beverage companies in India,” Chauhan said.
Dairy giant Amul, which needs around 1.2 million plastic straws every day for Rs 10 products sold in Tetrapack, has also proposed to set up its own factories to manufacture paper straws.
RS Sodhi, MD, GCMMF (Amul), told TOI, “India currently does not have any infrastructure to manufacture such volumes. Manufacturers in other markets are asking for eight times more.” “We have said that we will set up our own lines, as it is not a big cost. But it will take six months to a year.”
Similarly, Parle Agro, a major player in the category with mango drink Frooti, has sought deferment of the ban for six months to set up local manufacturing capabilities. This includes ordering machines, delivering them to vendors and obtaining authorized approvals before starting production.
Shauna Chauhan, CEO, Parle Agro said, “We have started importing paper straws to ensure that the new norms are met by its deadline. However, importing is not a sustainable option.” “Percentage increase in the cost of importing pla (Biodegradable) and paper straws have an increase of 259% and 278% respectively. The economics just don’t match for a Rs 10 product.”
Once manufacturing units are set up in India, the cost of paper straws will be almost double that of plastic straws, but the companies said they will be able to bear the cost. “The six-month extension will help straw manufacturers in India to build sufficient capacity to manufacture and supply biodegradable straws to beverage companies in India,” Chauhan said.