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Single-use Plastic Ban may lead to hike in prices of FMCG companies

The Government of India has already announced the blanket ban on the single-use plastics. Even the nation is totally geared up for that. However, several FMCG companies based in the country are concerned about the problems that they would face once this ban is enforced. The ban will lead to a rise in the packaging cost of the Fast-Moving Consumer Goods Companies (FMCG) in India.

The Government had proposed a ban on small plastic bags and thin wrapping of the products. It would lead to a hike in the cost of overall packaging and distribution of the products by around 15 to 20%. A source added that value packs, bundled packs ad the Jumbo packs would take a hit. These companies use plastics for the packaging of different items such as shampoo sachets, biscuits, chips, soaps, etc.

Some of the prominent FMCG companies functioning in India are Coca-Cola, Procter and Gamble (P&G), Hindustan Unilever, Nestle, etc., who provide their services. All of them currently use plastic packaging for various products. The FMCG sector has sought clarification of BOPP which falls under the proposed ban. The Indian Government would soon release a final list containing names of the products that could be banned.

The Modi Government has started a war against the large scale use of plastics, including bottles. The leaders from different industries have also supported this ban. Earlier All India Association of Natural Mineral Water Industries and Packaging Association for Clean Environment (PACE) had requested the Government to exclude PET water bottles from the list of banned items. These bottles are 100% recyclable.

The Central Pollution Control Board (CPCB) had earlier submitted a list of 12 items that need to be banned immediately. These items are non-woven carry bags, plastic cups, straws, thin plastic bags, etc. Meanwhile, there are speculations that the Government may exclude packaged water bottles of 1 liter from this list.

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