Leading paper and board manufacturers are worried as the Tamil Nadu government has decided to ban plastic-coated paper cups along with a wide range of plastic products as part of the nationwide campaign against disposable plastics.
As of now Tamil Nadu alone has included the LDPE-coated plastic cups. Paper and board manufacturers, downstream coating units and convertors are worried as this ban will affect them.
There are over 20 coating units and over 500 cup manufacturers providing a total of over 15,000 jobs in the State directly.
Possible impact
Also, large paper manufacturers including Tamil Nadu Newsprint, one of the biggest players in this grade of paper, could be impacted. Others such as West Coast Paper, Century Paper, ITC and JK Paper who also make the base paper could also be affected by the ban that kicks in from January 2019, according to industry sources. The Tamil Nadu Poly Coater Association has made a representation against the ban. The State government came out with the notification last month.
Association representatives pointed out that paper cups were brought as an environment friendly alternative to plastic cups. The plastic coating in paper cups accounts for about 5 per cent of the material, 95 per cent is paper. The LDPE coating is also food grade, degradable and is in use globally. The market size is estimated at about 12,000 tonnes of cups per month in Tamil Nadu, among the earliest to adapt this alternative, accounting for nearly half the usage.
Industry representatives pointed out that as of now, business establishments and hospitality industry will have to go back to traditional steel and glass tumblers.