Enough paper straw capacity in India: IPMA

The paper industry said in a statement late Thursday that there is enough capacity and technological knowhow to manufacture paper for making paper straws in India. This follows statements over the past few weeks by FMCG companies that the capacity required for making straws is not available in India.

"A wrong impression is being created that presently there is no Indian paper mill that can manufacture the required paper for making paper straws," A S Mehta, president of the Indian Paper Manufacturers Association (IPMA) said in a statement.

The government’s ban on single-use plastic, including plastic straws, starts on July 1, 2022.

FMCG players have said lack of enough paper straws capacity is forcing them to import, and that it could take well over one year to set up domestic manufacturing for the paper straws.

“There are several paper mills in India that are already manufacturing the base paper, meeting all requisite technical parameters, for making paper straws. Any additional paper requirement for making paper straws can also easily be met by Indian paper mills, the statement by IPMA added.

FMCG companies making small cartons have maintained they will have to remove the plastic straws from July 1, if the ban on the plastic straws is not deferred, adding that infrastructure for making paper straws locally at scale is non-existent today.

Companies including Amul, Parle Agro, Dabur and PepsiCo have placed import orders for paper straws, but the quantity would not be enough to meet demand. Imports will also be costlier and hurt the profit margins at the entry-level, fast-moving Rs 10 and Rs 20 packs, they said.

The industry wants the government to push back the deadline at least by a year. A meeting this week with government officials, where the companies lobbied for deferment of the ban, remained inconclusive.