🤔 Why Amul, Parle Want to Delay Plastic Ban
The ban on single use plastic items may seem like good news to us. But not everyone is happy. Here's why.
People who are in a position of authority are usually blamed for their tendency to take slow decisions.
But often this delay is because they have to look at all possible consequences and avoid any ripple effects that could cause harm.
Confused?
Don’t worry, today we have decided to take a look at one such government policy that was implemented for good but could have a lot of negative consequences.
🚫 The Plastic Ban
Last August the government of India decided to introduce a ban on single-use plastic. Like straws, earbuds, plastic sticks and more. This ban will be implemented from July 1.Â
A decision to cheer indeed. You see, globally we produce 380 million tonnes of plastic, which has accumulated into a trash pile of 6.3 billion tonnes.
This plastic does not decompose and just sits around for centuries polluting our air, soil, and water and could account for 5-10% of greenhouse gases.
Not only that, it is created using fossil fuels, which leads to more pollution.
Now, we cannot rid ourselves of plastic completely, as it is a necessary evil (can you imagine a world with no plastic?).Â
So, the best way to reduce our plastic intake is to stop using plastic that we use just once.
But we aren’t banning them all.
Here are the items that will be banned:
Plastic Sticks
Cutlery Items
Packaging Wrapping Films
Invitation Cards
Cigarette Packets
Plastic or PVC Banners less than 100 microns thick
Why have only these items been selected?
Well, we're eliminating single-use plastic in phases and the government felt the ban on these items would cause the least amount of problems.
Wondering the impact of this decision?
We use 120 billion pieces of just plastic cutlery each year of which straws form a major part.
So, this could help reduce India’s plastic waste (34 lakh tonnes) by a lot!
Great move by the government, right?
But not everyone seems to think so.
âš¡The Problem
This move poses a huge problem for companies that are heavily dependent on cheap plastic products.
For instance, beverage companies.
Most of these companies sell small tetra packs that are meant to be had on the go.
And because these are meant to be consumed on the go, they come with a handy straw.
That’s the whole appeal of these tiny packs.
And they are high in demand, with around 6 billion packs sold each year.
They contribute around 60% of the revenue for companies like Dabur, Parle, Marico, PepsiCo and others.
But with plastic straws now going extinct, these companies are in trouble as they have not been able to produce or source alternative eco-friendly straw options yet.
To add to their woes paper or PLA straws (which are biodegradable) are not manufactured widely in India due to lack of demand.
So, the only option left with these manufacturers is to import straws which will raise costs by approximately 2.5-2.8 times
And thanks to a shortage of paper straws worldwide and the huge costs associated with imports, imported straws will only be able to fulfil 10%-15% of the demand.
This whole ordeal is set to cost companies around Rs. 6,000 crores.Â
The worst part? The delay in getting these imported straws could lead to plant shutdowns, costing people their jobs.
So, what’s the solution?Â
Well, companies have asked the government to delay the ban by at least six months.
This will allow them to set up paper straw plants in-house to fulfil demands.
But even this may increase costs substantially, possibly eliminating Rs. 10 tetra packs from shelves.
This could be a huge problem for companies in the long run, as most consumers in India are most comfortable with the Rs. 10 price point.
Increasing the price could massively reduce sales.
Also, paper straws are not that durable and could leave an odd taste in people’s mouths further alienating them.
Some Indian companies are also working on introducing bamboo straws but they are equally expensive right now.
So, you see, how a decision that seemingly was good for everyone still ends up having some negative consequences.
This is why authorities often have to spend a lot of time weighing the pros and cons.
Now, we will have to wait and watch if the government gives in to beverage companies’ demand to push back the ban or not.
âš¡In a line: The government is banning single-use plastic to reduce harmful plastic waste but this will raise costs for beverage companies and make Rs. 10 tetra packs unsustainable.
💡Quick question: Do you think the government should take beverage companies’ demands into consideration?
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