India plugs loopholes in import ban of plastic scraps

Priya Jestin

18-Oct-2019

MUMBAI (ICIS)–India has clarified that imports of all types of plastic scraps are prohibited under existing rules, following reports that recycled polyethylene terephthalic (R-PET) flakes and lumps from abroad continued to be bought by local recyclers despite the ban.

The notice was issued on 3 October by the Ministry of Environment, Forests and Climate Change, said a ministry official who declined to be named, adding that ban applies to plastic waste of “all kinds and in all forms”.

This clarification had become necessary as plastic recyclers were continuing to import R-PET flakes and lumps despite a total ban being imposed in March this year, said Ashish Jain, director at Indian Pollution Control Association (IPCA).

IPCA, a non-governmental organization (NGO), collaborates with the government and private companies to recycle domestically generated plastic waste.

IMPORTS OF PLASTIC SCRAPS SURGE
An independent study done by another NGO, Deen Dayal Upadhyay Smriti Manch, showed that Indian recyclers had imported nearly 100,000 tonnes of R-PET flakes and around 22,000 tonnes of plastic lumps between April 2018 to February 2019.

Import sources include the US, UK, France, Japan, Spain, Canada, Germany, Pakistan and Bangladesh, among others, said Vinod Shukla, president of the  NGO.

“The import ban will now force recyclers to source plastic scrap domestically,” Shukla added.

For the fiscal year ending March 2018, imports of R-PET bottle scrap and flakes had quadrupled to 48,000 tonnes from the previous year, based on the study.

Official data are not available, but government sources at relevant departments contacted by ICIS admitted to increased volume of plastic waste imports after China imposed its own plastic recycling ban in 2017.

An Indian worker sorts plastic bottles at a recycling unit in Dharavi, Mumbai, India. (Photo by Divyakant Solanki/EPA-EFE/Shutterstock)

BAN TO BOOST TO RECYCLING MOMENTUM
India generates around 26,000 tonnes/day of plastic wastes, only 60% of which are collected and recycled, according to official records.

“India’s recycling level is low due to lack of segregation at source, hence, the plastic is contaminated. This makes it difficult for recyclers to use the plastic waste generated in India,” Jain of IPCA said.

A study by the Council of Scientific and Industrial Research done in 2017 showed that India recycles nearly 90% of its PET waste.

Out of the 900,000 tonne/year PET produced in the country, 65% is recycled at registered facilities, 15% in the unorganised sector, and 10% is re-used in homes.

The recycled PET (R-PET) industry has an estimated turnover of Indian rupee (Rs) 35bn ($2.4bn), based on the study.

In Maharashtra, the third largest state in India, current levels of plastic waste collection has an estimated annual turnover of Rs500m, which could rise to nearly Rs4bn by 2021.

“Now that the ban [on plastic waste imports] has been imposed, we may see the creation of demand for segregation, which will improve collection,” IPCA’s Jain said.

Exemptions from the ban previously enjoyed by Indian importers in special economic zones (SEZs) and export-oriented enterprises when the rules were amended in 2016 were withdrawn in March this year.

India first banned solid plastic waste imports in 2015.

“Earlier, the ban did not specify the exact kinds of plastic, which allowed Indian recyclers to import plastic flakes and lumps, made from washing and cutting of plastic waste,” the IPCA chief said.

Recyclers preferred importing plastic flakes and lumps as they were cheaper and cleaner compared with locally-generated plastic waste, he said.

“The import ban [on plastic waste] will now force recyclers to source plastic scrap domestically,” said Vinod Shukla, president of Pandit Deendayal Upadhyay Smriti Manch.

PRIVATE PLAYERS – PARTNERS IN PURSUIT OF SUSTAINABILITY
The government is trying to encourage private players to do their bit in recycling plastics, including those engaged in fast-moving consumer goods and pharmaceutical industries supposed to take back plastic wastes generated by their products.

Multinational companies across India have devised buyback schemes for their respective plastic products.

In September, large beverage makers such as Coca-Cola India, PepsiCo and Bisleri, along with other consumer goods companies such as Parle Agro, Reliance Industries, Varun Beverages, Diageo and Manjushree, among others, set up a packaging waste management entity which would create a value chain for collecting plastic waste and recycling it.

Additionally, the government is asking cement firms to use plastic waste as fuel.

Government entities such as the Indian Railways and state-owned companies like Indian Oil are also pursuing various plastic recycling strategies.

Indian Railways plans to install plastic bottle crushers across stations and plans to install benches made of recycled plastic on railway stations.

Another recycling project being pursued is construction of roads using plastics.

India’s Ministry of Road Transport & Highways recently announced that it will use plastic waste in road construction after completing pilot projects in Tamil Nadu and Kerala states.

Focus article by Priya Jestin

($1 = Rs71.3)

Click here to see regulatory targets and a list of chemical and mechanical recyclers on the ICIS Circular Economy topic page.

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