Amul Dairy is bracing for sales disruptions as a result of the government’s straw ban
- ByStartupStory | April 11, 2022
The Amul dairy firm said on Monday that the government’s ban on plastic straws will cause interruptions and higher input prices for some goods starting in July. According to Reuters, India refused to waive an approaching ban on straws bundled with a small juice and milk beverage packs last week, raising anxiety in the $790 million markets, which includes PepsiCo, Coca-Cola, and India’s Dabur, and Parle Agro.
According to R. S. Sodhi, Amul’s managing director, “we haven’t come up with a realistic method to replace the tiny plastic straws, and the paper alternative isn’t feasible.”
Sodhi’s remarks highlight the rising tensions in India’s beverage business at a time when demand spikes during the scorching summer months. Prime Minister Narendra Modi is working to eliminate toxic single-use plastic waste from rivers. According to the authorities, the tiny straws are a “low-utility product” that should be replaced with paper straws or spout pouches.
According to Sodhi, Amul, a well-known brand in India known for its milk and butter products, had sales of 610 billion rupees ($8.04 billion) in 2021-22. It also sells tiny packets of milk-based beverages with straws. Because of the restriction, supplies of such carton packs will be disrupted, and manufacturers may switch to more expensive packaging methods, rising expenses, according to Sodhi, who added that Amul distributes billions of such carton packs every year.
Other popular beverages available in such packets include Pepsi’s Tropicana juice, Coca-Maaza, Cola’s, and Parle Agro’s Frooti mango drinks. An industry group that represents them and other beverage companies have stated that it intends to raise issues with the government once more, and Sodhi has stated that Amul will do the same.
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