amul faces sales disruption due to straw ban

India’s US$8bil (RM33.8bil) Amul dairy group is bracing for disruptions and higher input costs for some products from July when the government’s ban on plastic straws kicks in.

India last week refused to waive an impending ban on straws that are packaged with small juice and milk beverage packs, stoking fears in the US$790mil (RM3.3bil) industry that includes players like PepsiCo, Coca-Cola, India’s Dabur and Parle Agro, Reuters reported.

Amul has not worked out any practical solution to replace the tiny plastic straws and the paper variant is not feasible, said R. S. Sodhi, Amul’s managing director.

“The intention of the government is good … (but) the straws are not even 0.1% of total plastic consumption,” Sodhi told Reuters.

“The entire industry will be impacted.”

Sodhi’s comments underscore the growing tensions in India’s beverage industry at a time when demand surges in the sweltering summer season. — Reuters

Source : The Star 12th April 2022