Plastic ban: Maharashtra, Gujarat among top Indian plastic waste producers

India ranks as the fifth-highest country in the generation of plastic waste with an annual discharge of 3.5 million tonne in fiscal year 2020, according to a note by Kotak Institutional Equities.

Maharashtra, Tamil Nadu and Gujarat are among the top Indian plastic waste producers, according to a Kotak Institutional Equities that has cited the Central Pollution Control Board (CPCB) in its recent note.

India ranks as the fifth highest country in generation of plastic waste with an annual discharge of 3.5 million tonne in fiscal year 2020, the note said citing the CPBC. CLICK HERE FOR CHART

“Almost 83 per cent of this comes from just 10 states/ Union Territories (UT). On a per capita basis, India’s plastic waste generation has almost doubled over FY2016-20; however, remains lower than most of the developed economies,” the report said. CLICK HERE FOR CHART
 

India has banned the use of 19 single-use plastic (SUP) items manufactured using non-biodegradable / non-compostable plastic with effect from July 2022. Earlier, India had banned the use of plastic carry bags with thickness less than 75 microns with effect from September 30, 2021, which will be increased to 120 microns with effect from December 31, 2022.

Amongst the banned items, plastic straws which are used with low value packs of juices/beverages, the Kotak report said, could see an increase in cost from Rs 0.25-0.30 to Rs 1-1.25 per unit (industry estimates) as they switch to imported paper straws.

“The salience of non-rigid plastic packs is high in the case of several FMCG categories such as biscuits, instant noodles, tea, detergent powders, shampoos, milk, edible oils, etc. Price point packs (low unit packs; primarily have plastic packaging) account for over 30 per cent of overall volumes for companies such as HUL (about 50-60 per cent for Britannia). Replacement of plastic with environment-friendly substitutes could increase packaging costs meaningfully, especially in case of sachets; thus, any broad-based ban on SUP in the medium-term could impact volumes as well as profitability of the sector,” the Kotak Institutional Equities note said.