India’s rPET industry (recycled PET) is facing turbulence after amendments to the Plastic Waste Management Rules created uncertainty around recycled content obligations. The Association of PET Recyclers (Bharat), which represents Indian recycling companies, has warned that brand owners are stalling procurement, undermining demand and threatening years of investment.
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Brand Owners Delay Purchases Amid Rule Changes
Under the current framework, rigid PET packaging such as beverage bottles is required to contain 30 % recycled content starting April 2025. However, a draft amendment, introduced on June 3rd, allows companies to carry forward any shortfall in meeting this requirement across three years. This shift has prompted many producers to postpone compliance, with recyclers fearing that enforcement may be weakened or delayed altogether.
Heavy Investments at Risk
The Indian rPET industry has already invested an estimated Rs 7,500-8,000 crore ($850-960 million) to expand production capacity to 400,000 tonnes per year. Currently, 150,000 tonnes are fully operational and approved by the Food Safety and Standards Authority of India (FSSAI), while another 150,000 tonnes are nearing approval.
Industry leaders argue that these facilities were built in response to government mandates and are now underutilized due to weak demand. Idle plants, coupled with falling rPET prices, are eroding returns and creating uncertainty for investors and small enterprises that trusted the original policy targets.
Impact on Waste Pickers and Employment
The policy shift is also reverberating through India’s informal waste management sector. Before the amendments, PET recycling was generating around 10,000 jobs and supporting more than 2 million waste pickers nationwide. With reduced demand, recyclers warn that the livelihood of this community is at risk, as less material is being collected and processed.
Risks to Circular Economy Goals
Recyclers stress that weakening enforcement jeopardizes India’s circular economy objectives, climate targets, and sustainable packaging commitments. They point to parallels in the European Union, where inconsistent enforcement has hindered progress in recycled plastics markets.
Conclusion: A Call for Stability
The rPET sector, buoyed by early government action and international sustainability goals, now finds itself at a crossroads. With significant capital deployed, capacity built, and livelihoods tied to the industry’s success, stakeholders are urging the government to provide clarity and ensure regulatory continuity. Without firm enforcement, India risks losing momentum in building a robust recycling ecosystem and potentially stalling progress towards both its climate ambitions and circular economy vision.
