E-commerce companies have to shift on Paper or other recyclable packaging

E-commerce Companies have to shift on Paper or other recyclable packaging

New Delhi | 18 July 2018 | The Pulp and Paper Times

The ongoing ban on single use plastic in Maharashtra is forcing E-commerce companies to replace their packaging style from plastic to other recyclable material like paper packaging. However, the state has allowed ecommerce companies to use plastic packaging for three more months, according to a government order dated June 30. 

During this three months time, e-commerce firms will have to come up with a buyback plan to collect used plastic packaging material, ensure its recycling and disposal as well as source alternative packaging material. 

The ban, which came into effect on June 23, had threatened a sharp rise in costs for retailers, beverage makers and sellers of bottled water, among other companies that rely on plastic for packaging. The latest rules exempt the use of plastic packaging of medical equipment and drugs.

The extension to ecommerce companies matches that given to retail packaging firms by the state government for submitting their recycling plans.

Online businesses such as Flipkart, Amazon and Paytm Mall are now required to upgrade their packaging material in Maharashtra to corrugated (cardboard) boxes, which are about 30% more expensive than plastic packaging material, according to industry estimates. Packaging costs presently account for 1-3% of the value of an online order, on an average.

“The plastic ban is going to impact the eCommerce industry more than anything else,” said Abhishek Bansal, CEO of logistics firm Shadowfax that undertakes deliveries for Paytm Mall and Amazon. “Even for us, there are strict mandates on the kind of packaging that can be used.”

According to Paper Industry “Plastic is becoming a reason of flood situation in Maharashtra during the Monsoon. Paper packaging is the solution to this situation”

According to the industry body Indian Paper Manufacturers Association (IPMA), the paper packaging industry was expected to be about 9.8 million tonne per annum in size in 2017.The industry is expected to move at 18 per cent CAGR in the next 10 years with average price of more than USD 1000 per tonne, it added.

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