Plastic ban looming, FMCG firms consider importing paper straws

Nestle has already made the switch; Dabur, Amul, Parle weigh options

With barely two-and-a-half months to go before the plastic straw ban kicks in on July 1, fast-moving consumer goods (FMCG) companies that sell juices and milkshakes in small tetra packs with straw attached see only one plausible alternative at this point: Paper straws. Only, making the switch from plastic to paper is easier said than done.

One, given that paper straw manufacturing is still a niche area, companies will need to import them for the time being. Two, paper straws cost more than plastic ones, so overall cost of the product would likely go up.

That said, Nestlé India has already started attaching paper straws with its cold coffee tetra packs and Milo range of products. These straws are imported from Indonesia, according to information on the packaging. 

Dabur India, which sells Rs 10 Real fruit juice packs, might also opt for paper straws. “While there is no sustainable alternative to integrated plastic straws in the country today, we are exploring the option of importing paper straws, which is against the very spirit of the government’s Atmanirbhar Bharat initiative,” says Mohit Malhotra, CEO, Dabur India. 

“Importing paper straws will also have cost implications and lead to loss of revenue to the government exchequer,” he adds, urging the government to extend the date of the ban until paper straws can be manufactured locally at scale.

Amul, which sells buttermilk in tetra packs, is, however, looking for alternatives other than paper straws. “These are expensive and not a workable solution. We may have to shift to pet bottles, but that is also plastic, so it defeats the purpose and they are expensive," says Amul Managing Director R S Sodhi. “We are yet to work out a viable alternative.” He adds that while the government’s intentions are good, straws are an integral part of packaging. “We are ready to recycle them.”

Parle Agro, which sells Frooti, is considering options that do not shoot packaging expenses up. “The alternative will also have to be practical for consumers and manufacturers,” says Nadia Chauhan, joint managing director and CMO, Parle Agro.

The Action Alliance for Recycling Beverage Cartons (AARC), while engaging with the government to have the deadline extended, is also working to bring in bio-compostable straws made of polylactic acid. These straws are derived from plants. However, this will require approvals from various agencies: the Food Safety and Standards Authority of India (FSSAI), Central Institute of Petrochemicals Engineering & Technology (CIPET) and the Bureau of Indian Standards (BIS). That, says AARC, will take at least nine months to a year.

The industry is also exploring ways to introduce paper straws that meet India’s food-grade specifications.

“We need some extension to bring in bio-compostable straws into the market,” says Praveen Aggarwal, CEO of AARC. “The industry has ordered a machine to manufacture paper straws but production will begin only by early 2023. Then too it will be able to meet only part of the requirement.”

Besides, the new machine will meet just about 10 per cent of the industry’s requirement, he says.

In the interim, importing paper straws — which cost five to seven times more than plastic ones — is the only option, he adds.

“For price-conscious consumers, as also for children and the elderly, this would be a problem,” Aggarwal says. “There is no alternative to these small cartons of aseptic packaging (wherein contents are sterilised separately from packaging) of juices, milk/ butter milk and ORS that allows for over six months of shelf life without air-conditioning.”

The eco-friendly challenge

For local plastic manufacturers and suppliers, too, the obvious alternative is paper products.

Anil Dutta, the manager of Delhi-based State Express Plastic Industries that has supplied plastic across the country for over four decades, wants to wait and see if the ban is enforced.

The company manufactures both plastic and paper straws, the latter not more than 10-15 per cent.

Dutta observes that manufacturing of paper products falls drastically whenever the administration softens its stand on plastic use, and he fears that the slated ban might lead to dependence on import of paper straws.

“If we spent Rs 10-15 lakh on setting up a plant for paper products earlier, it would cost Rs 25 lakh today. Why doesn’t the government subsidise manufacturers to help us make the switch?” he says.

Further, he adds, there is a problem of paper shortage, so scaling up production of straws would be a challenge.

Vaibhav Somani, managing director of Bhagyadeep Cables in Jaipur, says that the company is already readying polylactic acid (PLA) or biodegradable straws in anticipation of the ban.

A plastic polymer that includes corn starch as an ingredient, the PLA straw is not much in demand as the plastic straw is much cheaper, he points out.

Bhagyadeep Cables sells plastic straws for 20 paise per piece, paper variants for 40-45 paise and PLA ones for around 60 paise.

Somani opines that paper straw is not necessarily a healthy option. “If there is some kind of lamination, it can be harmful, whether you are using it for soft drinks or beverages. The use of adhesive in paper can also be a major issue. So, it needs proper temperature. Besides, it can turn soggy easily,” he adds.

Once the ban is in force, manufacturers will have to scale up capacity of plants for alternatives that demand greater investment.

Somani points out that although his company has the same number of machines for both, plastic straws are three times the volume of paper ones. “To increase the production of paper straws to the same level as plastic, I will need to make a three-fold expense,” he explains.

The expenses will also require import of corn starch.

For traders, the ban means replacing the inventory.

Ashok Koli, who runs a shop in New Delhi’s Sadar Bazaar, says there is a ready alternative in paper and the cost difference isn’t much either: he sells a packet of 100 10mm plastic straws for Rs 40 as against Rs 50 for paper ones. But he fears a ban on single-use plastic could lead to business losses for factories as well as loss of employment.