Recycled PET Boost: Supply Chain Relief and Circular Economy Growth

Recycled PET Boost: Supply Chain Relief and Circular Economy Growth.webp

Mumbai, April 2 The Association of PET Recyclers (Bharat) has said that the notification on final guidelines mandating the use of 40 per cent recycled content in food-grade packaging from April 1 is a "progressive step" which is expected to significantly ease the supply chain disruptions caused due to recent geopolitical uncertainties impacting both the availability and pricing of virgin PET.

In a statement on Thursday, the Association's Director General Goutham Jain said that it also marks a significant milestone in the country's commitment to sustainable resource management.

The Ministry of Environment, Forest and Climate Change, in its latest guidelines, has mandated the use of 40 per cent recycled content in food-grade PET packaging in 2026-27.

In its draft notification issued on June 3, 2025, MoEFCC had allowed brands and producers to carry forward shortfalls in meeting the 30 per cent recycled-PET target for food contact applications for 2025-26 over the next three years.

Starting April 1, brands and producers are required to use 40 per cent recycled content in packaging.

In addition, they are also expected to carry forward the unmet target for the mandatory use of recycled content of FY25-26 (30 per cent 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, according to the Association, which is a coalition of companies in the country dedicated to the responsible recycling of Food Grade PET (Polyethylene Terephthalate) materials.

"We wholeheartedly welcome the government's progressive step, which has reinforced confidence in the vision of ensuring a circular economy. This move is set to significantly ease the supply chain disruptions caused due to recent geopolitical uncertainties impacting both the availability and pricing of virgin PET. With the current authorized capacities in place, India is well positioned to cater to up to 50 per cent of the total PET requirement for bottling applications through recycled material," said Jain.

The mandate is expected to accelerate the adoption of recycled PET (rPET) across the food and beverage sector, creating robust demand for high-quality recycled materials while strengthening the domestic recycling ecosystem, he said.

"By closing the loop on plastic use, the policy will play a pivotal role in reducing plastic waste leakage into the environment and minimising dependence on virgin plastics," he added.

Earlier in March this year, FSSAI had granted authorisation to seventeen recycled PET manufacturing plants, unlocking 3-lakh tonne capacity for the country's circular packaging economy, according to the Association.

The Plastic Waste Management Rules 2016 (as amended from time to time) mandates the use of 30 per cent recycled content in rigid plastic packaging effective from 2025-26 with a gradual increase of 10 per cent every year until 60 per cent in 2028-29 and onwards, it said.

Aligned with this mandate, 15-18 food-grade rPET recycling facilities were established across the country with a total capacity of approximately 3 lakh MT at an estimated investment of Rs 9,000 - 10,000 crore, APR Bharat said.

These companies have adopted state-of-the-art technology and set up their factories adhering to standards approved by the European Food Safety Authority (EFSA) and US Food and Drug Administration (FDA), it said.
 
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circular economy efsa (european food safety authority) fda (food and drug administration) food grade packaging fssai (food safety and standards authority of india) geopolitical uncertainty india ministry of environment, forest and climate change packaging industry pet (polyethylene terephthalate) pet recycling plastic waste management recycled pet recycling capacity supply chain virgin pet
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