Beverage industry has expressed concerns regarding the implementation of recycled plastic norms pointing to adequate availability and limited infrastructure to produce food grade recycled plastics. As per the regulations notified by Ministry of Environment , Forest and Climate Change , which will be enforced from April 1, beverage makers will need to ensure that 30 per cent of recycled plastic is used to make Category 1 packaging. Category 1 is defined as rigid plastics and includes PET bottles. The norms also state that the content of recycled plastics content in this category will need to increase 10 per cent year-on-year to touch 60 per cent content levels by FY 28-29.

Several industry bodies including Indian Beverage Association and Federation of Indian Chambers of Commerce & Industry have expressed that their are challenges in meeting these norms in their representations to the government. In a meeting with the Central Pollution Control Board held in December, industry representatives stated that the 30 per cent plastic content threshold is very stringent expressing concerns about lack of availability of enough rPET to meet these norms. Beverage and FMCG companies have asked the government to set a more realistic targets of recycled plastics to be used in beverage bottles.

Some industry players have suggested to initially set the plastic content level obligation to 15 per cent for which can then be increased by 5 per cent year-on-year, senior industry executives told businessline.

Sources said that the industry bodies and FMCG companies have told authorities that there are only about 18 food-grade recycled plastic manufacturers in India and their capacity is lesser than the projected demand of recycled plastic needed by the industry to adhere to these regulations. A senior executive with the leading beverage company said, “We will be forced to import recycled plastic to meet the 30 per cent content obligation, which will be very expensive. Also, this will defy the very objective of these regulations, which is to ensure more and more plastic gets recycled within the country.”

Raised concerns

Companies have also raised concerns that not all food-grade rPET manufacturers have FSSAI licenses so far . Industry bodies have also stated that some of the rPET food grade standards are still in the draft stage and have not been finalised.

Another senior executive pointed out that even in developed countries such as EU, regulations are aiming to reach the 30 per cent recycled plastic content only by 2030. “The government must calibrate the recycled plastic content obligations depending on the market capacity,” he added.

Industry players have also raised concerns about recycled plastic makers hiking prices of rPET resins once the norms are enforced and have sought intervention of the government in this regard.