Beverage makers and industry bodies have expressed concerns about inadequate availability of food-grade recycled PET to meet the targets set for its use in packaging for FY27. As per the Plastic Waste Management (Amendment) Rules, 2026, effective April 1, brands using rigid plastics identified as Category 1, which includes PET bottles, have been mandated to use 40 per cent recycled PET content in packaging for the year FY27.
In addition, they are also expected to carry forward the unfulfilled target for mandatory use of recycled content of FY25-26 (30 per cent) in compliance with some terms and conditions.
Concessions sought
In a letter written by PET Packaging Association For Clean Environment (PACE) to the Environment Ministry, it has urged the government to revise the targets in sync with the quantities of FSSAI-approved rPET available in the country. It has also sought concessions in carrying forward the annual pending obligations.
“For FY 2026-27, the quantity of food-grade recyled PET (FG-RPET) manufactured is inadequate to meet the current targets of use of Recyled Plastics (UReP). The post-consumer PET bottles in India have traditionally been used as input material for the man-made fiber industry. The same pool will be now stressed to fulfil the UReP targets of the FMCG and packaging industry without any reduction in demand from the man-made fiber industry,” PACE stated in a letter, a copy of which was reviewed by businessline.
PACE represents leading beverage companies including soft drink bottlers and recycling companies.
“ The FSSAI approved capacities are not fully available for plastic packaging for the EPR Category-1 compliance in India. A part of RPET (recycled PET) is exported for the cosmetics and pharma industry overseas; and some is also utilized in non-food packaging in India. These ground realities put a stress on the already limited supply of used PET bottles for recycling for packaging endpoints. We request you to kindly consider a pragmatic assessment to be done for the availability of food grade recycled PET for EPR compliance,” the industry body noted in its letter.
As per estimates by PACE, the quantity of food grade recycled PET is estimated at 3.54 lakh tons. However, the industry body claimed that the requirement of recycled PET to meet 40 per cent compliance in 2026 is 6.84 lakh tons.
Till the time there is availability of food grade recycled PET in sufficient quantity, the industry body has requested the government to mandate reduced targets for use of recycled plastic content in packaging for FY 2026-27.
Published on April 26, 2026