The companies said imposing the ban from July 1 would lead to several challenges such as supply constraints and arranging for alternative items, such as imported paper straws, as well as increased costs.

Action Alliance for Recycling Beverage Cartons (AARC), which represents Coca-Cola India, PepsiCo India, Parle Agro, Dabur, Diageo and Radico Khaitan, among others, said the transition could result in losses of ₹3,000 crores in sales for the industry.

Beverage companies are looking to import paper straws as India does not have enough capacity to manufacture them. In addition, the raw material of paper straws must also be imported.

Parle Agro said they have placed orders to import paper straws to meet the deadline but at “exorbitant cost”, considering that a plastic straw costs 15 paise, while a paper straw can cost up to 40. paise. “This is not sustainable due to the high delivery times required by paper straw manufacturers. Also, transportation disruptions will cause delivery delays,” said Schauna Chauhan, CEO of Parle Agro, which manufactures Frooti and Appy Fizz.

Considering that small packaging represents 40% of its sales, Parle is requesting a six-month extension of the deadline to strengthen the local production capacity of alternatives. “This extension will enable all straw manufacturers in India to enhance their sourcing capabilities for beverage companies,” she added.

A Coca-Cola India spokesperson said it was working with all stakeholders. “As things progress and we have more clarity, we will be able to share more information.”

Some manufacturers are even considering removing straws from small packages, people in the know said, requesting anonymity.

Praveen Agarwal, chief executive of the AARC, expects 10-15% of stock to use non-plastic straws by the end of July. “During the first month of the ban, supplies will be minimal due to severe disruption,” he added.

“We are looking for a gradual transition. We are asking for 18 months, during which we will see a gradual transition to plastic substitutes,” Agarwal said.

According to CK Jaipuria, president of Pearl Beverages, she has placed orders for paper straws from China and Indonesia, but the costs are high. “There is very little margin left to absorb the prices; this worries manufacturers. We are asking for time until we are able to build capacity in the country. It’s not that we’re not trying to build capacity, but it’s going to take at least 16 to 18 months. Some capabilities will be in place before the end of the year,” he added.

Dabur India Managing Director Mohit Malhotra said he was working on importing paper straws. “Since there is no sustainable alternative to in-built plastic straws in India, we will be importing paper straws which will have financial implications for businesses and result in loss of revenue for the treasury,” said he declared.

“The transition will impose additional costs on businesses in times of inflation.” However, Malhotra did not say whether Dabur plans to raise prices. “While some state regulators have allowed the use of biodegradable plastic straws and paper straws, the infrastructure for large-scale production of these straws is non-existent in India. We therefore urge the government to extend the implementation implementation of the ban until appropriate infrastructure for the production of paper straws is developed locally,” he added.

In April, packaging company UFlex announced that it was setting up a paper straw manufacturing unit in Sanand, Gujarat. “Business interest is very high. We are building the infrastructure and capacity for paper straws. The first batch will be ready by the first week of July,” said Jeevaraj Pillai, Co-President, Packaging and New Product Development, UFlex.