New Delhi, May 26: The government’s recent move to promote austerity in imports to protect its foreign currency reserves and push for indigenisation of over 200 import-dependent petrochemical items notwithstanding, the country’s recycled PET industry continues to struggle with “severely under-utilised” capacities.
According to Goutham Jain, Director General, APR Bharat, nearly 20-25 per cent of the country’s r-PET capacities are lying idle for lack of demand from plastic packaging users/brands. This is severely impacting the industry, which has set up close to 4.39 lakh tonnes capacity (including both our members and non-members) at an estimated investment of over Rs. 10,000 Crore.
It is to be noted that the Ministry of Environment, Forest and Climate Change (MoEFCC) had in its latest guidelines issued in March, mandated use of 40 per cent recycled content in food-grade PET packaging in 2026-27 starting April 1. In addition, they are also expected to carry forward unfulfilled target for mandatory use of recycled content of FY25-26 (30% Mandate) for a period of up to three consecutive years with a minimum of one third of the carry forward target to be achieved every year.
“India imports a significant quantity of virgin petrochemical derivatives linked to crude oil. Any strategic move to reduce import dependence and encourage local alternatives creates a strong opportunity for the recycled PET industry. r-PET is not only a sustainable substitute but also a commercially viable domestic resource that can support India’s manufacturing and environmental goals simultaneously. The government’s nudge coupled with the mandate in place should have translated into a healthy demand for r-PET. However, we have not seen demand picking up as plastic packaging users/brands have not been adhering to the mandate,” Jain said.
Transition to r-PET is crucial to ensure national resource security, reduced import dependence, and a more resilient domestic packaging supply chain.
“Virgin PET availability and prices are widely affected by external shocks. A strong domestic r-PET ecosystem gives India a more stable local source of raw material. Every tonne of recycled PET used by the industry helps conserve fossil fuel resources, lowers carbon emissions, reduces import reliance and will make the packaging supply chain more secure,” he added.
Adequate capacities available
Contrary to the notion regarding inadequate availability of food-grade recycled PET to meet the targets set for its use in packaging for FY27, APR Bharat feels the Indian Food Grade rPET Industry has the “required technology and approved capacity” to support this food-grade r-PET transition.
“We already have FSSAI-approved 17 food-contact r-PET plants with a combined capacity of around 4.39 lakh tonnes currently which is enough to meet the 40% recycled content requirement for FY 2026–27. This capacity can support the additional carry-forward requirement of up to 10% from FY 2025–26. Besides, the recycled PET manufacturers are expanding at a rapid scale. Their food-grade r-PET capacity is expected to reach around 12.26 lakh tonnes by March 2027. This means the sector is preparing not only for the current 40% mandate, but also for the future increase to 60% in 2028-29 recycled content,” Jain clarified.
Under the Plastic Waste Management Rules 2022 India, brand owners were entrusted with the responsibility of actively building and supporting recycling capacity in partnership with recyclers. Unfortunately, instead of strengthening this collaboration, the r-PET industry is witnessing increasing pressure to defer mandated targets.
Such delays risk derailing India’s circular economy ambitions and undermine the commitments our nation has made on global platforms to combat plastic pollution. A consistent and committed approach from all stakeholders, especially brand owners, is essential to ensure that the progress achieved so far is not reversed, Jain said.
APR Bharat strongly urges all obligated entities to stay aligned with the regulatory timelines and work collaboratively with the recycling ecosystem to build a sustainable and accountable future.
“The technology is ready. The capacity is ready. The industry has invested and is expanding further. India can meet the current requirement and prepare for future targets. What is needed now is steady adoption by plastic packaging users/brands and consistent adherence to the rules by bottling and beverage industry,” he pointed out.
Beyond economy, there is a large-scale social impact affecting millions of livelihoods, mostly from marginalised fringes of the society.
A large part of PET collection in India is done by the informal sector. Nearly 50% of their daily income is linked to plastic waste collection. As demand for food-grade r-PET increases, waste bottles get pulled back into the formal value chain. This can improve income stability for waste collectors and create more work across collection, sorting, aggregation, logistics, and processing.