Page 21 - Plastcs News January 2019

FeAtures

Businesses are most affected

by ban

amil Nadu is the latest entrant to the band of Indian
Tstates that have banned single-use plastics. Tamil Nadu
has announced a ban on the manufacture, sale, storage,
and use of disposable plastic from January 1, 2019.
The ban primarily covers the use of plastic carry bags,
plastic plates,
plastic cups,
plastic flags,
small plastic
sachets used in
packaging water,
among others.
E x cl us io ns ,
however, apply
for milk, curd,
oil, and medicine
packag ing .
The Tamilnadu
Plastic owners association also claimed that closing of
these thousands of industries in the state will lead to
opening up of them in nearby states and result in the
Government losing more than Rs 1,000 crores revenue.
It also alleged that the entrepreneurs who took up loans
to buy machinery will be left helpless since they need to
sell it for a scrap price and finally meet a huge crisis to
repay the loans.
India’s plastic ban across more than half of its states
has businesses scrambling for cost effective responses.
Businesses in food, drink, retail, and e-commerce
industries are set to be the most affected by the changes
in legislation regarding single-use plastics due to their
heavy use in packaging. In e-commerce, for instance,
packaging charges comprise about two to three percent
of fulfilment costs – the price of delivery, shipping,
and compensating sellers for discounts. Switching to
other alternatives means investing in new machinery
and pushing these costs higher. For the food processing
industry, leaving plastic, or switching to alternatives, also
runs the risk of worsening other ills such as food spoilage.
To minimize the impact of the ban on businesses, most
states in India currently offer exemptions. However,
exemptions vary by state, and as such companies need
to prepare for a regulatory environment that will likely
entail tighter legislation and enforcement, impacting
production, packaging, and supply chains in the future.

21 Januar y 2019 Plastics News