Challenges in the Indian Compostable Industry

The compostable industry in India is currently facing significant hurdles, and one of the most pressing issues is the lack of government efficiency in addressing these challenges and promoting the sector’s growth. Despite the increasing global push towards sustainability, India’s compostable sector struggles under a range of bureaucratic and market-related difficulties.

The Single-Use Plastic Paradox

Surprisingly, the process to manufacture and sell banned single-use plastic products remains far easier than that for compostable alternatives. Despite a nationwide ban on the manufacturing, distribution, and sale of single-use plastics, these products are still freely available in local markets. There is minimal enforcement, making it easy for businesses to circumvent the law and continue operations without having to navigate compliance protocols or certification processes.

In stark contrast, manufacturers of compostable products face an overwhelming number of regulations. To legally sell compostable products, companies must go through an extensive certification process involving numerous permissions and high costs. The Central Pollution Control Board (CPCB) compostable certification, which is essential, takes an average of 7-10 months. During this time, businesses are unable to produce or sell their products, leaving their investments idle and the market unsupplied. This not only slows down business but also hinders the growth of sustainable solutions in the market.

Fake Compostable Products

Another alarming issue is the rise of counterfeit compostable products in the market. These products, often falsely labeled as compostable, are sold openly without any fear of government repercussions. This undermines the credibility of the entire industry, erodes consumer trust, and unfairly competes with legitimate businesses. Despite this, there has been little action from policymakers to curb the sale of these fake goods.

Compostable Industry

The Financial Burden

In addition to regulatory challenges, compostable product manufacturers also face significant financial hurdles. Goods and Services Tax (GST), taxes, and import duties on compostable products are the same as those for conventional plastic products, making it difficult for the former to compete on price. Moreover, compostable products have a limited shelf life, which adds pressure to maintain constant production and circulation of stock.

The Industry’s Resilience

Despite these obstacles, the compostable industry is striving to promote its products and raise public awareness about the harmful effects of plastic. Though their efforts are often seen as business-driven, the industry’s push for sustainable alternatives benefits society, the environment, and the government alike.

However, most compostable manufacturers are currently running at reduced production capacity due to the lack of market demand, and many have been forced to cut margins just to keep their plants operational. Their survival hinges on the hope that the government will step in and address the industry’s critical challenges.

The Role of Government: A Call for Action

While the Indian government has banned several single-use plastic products and recommended compostable alternatives, enforcement has been weak. The government has been unable to effectively prevent the sale and use of plastic or distinguish between genuine and fake compostable products. Moreover, the lack of direct support for the compostable industry has left businesses struggling, with little incentive for growth or investment in sustainable technologies. Moreover, support for research and development is needed in compostable industry to provide better and multiple product solutions to single-use plastics, even find sustainable solutions to most harmful MLPs.

For the compostable industry to flourish, the government must take immediate steps to offer support. This could include lowering GST rates, offering tax incentives, and reducing import duties for compostable products, at least during the sector’s formative years. Without these initiatives, it will be impossible for the industry to reach the scale needed to replace all banned single-use plastics.

In the absence of government intervention, some businesses have resorted to producing fake compostable products just to keep their machine running. This not only compromises the integrity of the industry but also undermines the original goal of replacing harmful single-use plastics with sustainable alternatives. Without strong regulation and support, the industry risks failing before it even fully matures.

Conclusion: The Need for Urgent Government Support

For India’s compostable industry to survive, let alone thrive, immediate government intervention is essential. Policymakers must recognize the ground realities and create a supportive framework for this emerging industry. A comprehensive scheme that includes financial incentives, streamlined certification processes, and strict enforcement of product authenticity will not only ensure the industry’s survival but also pave the way for a truly sustainable future. Without such measures, the dream of replacing single-use plastics with eco-friendly alternatives may remain unfulfilled.