Background:-
The Ministry of Environment, Forest and Climate Change, Government of India, notified the Plastic Waste Management Amendment Rules, 2021 on August 12, 2021. In keeping with the spirit of the ‘Azadi ka Amrit Mahotsav’, the country is taking steps to curb littered and unmanaged plastic waste pollution.
Since July 1, 2022, India has banned the manufacture, import, stocking, distribution, sale, and use of single-use plastic (SUP) items with low utility and high littering potential.
India is a party to the United Nations Environment Assembly (UNEA). In all, 124 nations are party to the UNEA, and India has signed a resolution to draw up an agreement in the future that will make it legally binding for signatories to address the full life cycle of plastics, from production to disposal.
Why are single-use plastics harmful?
- The purpose of single-use plastics is to use them once or for a short period of time before disposing of them. Plastic waste has drastic impacts on the environment and human health. There is a greater likelihood of single-use plastic products ending up in the sea than reusable ones.
- India has taken resolute steps to mitigate pollution caused by littered single-use plastics. A number of items are banned, including earbuds with plastic sticks, balloon sticks, plastic flags, candy sticks, ice cream sticks, polystyrene (thermocol) for decorations, plates, cups, glasses, cutlery such as forks, spoons, knives, straws, trays, wrapping or packing films around sweet boxes, invitation cards, cigarette packets, plastic or PVC banners less than 100 micron, stirrers, etc.
What is the impact on the environment?
- Littered single-use plastic items have an adverse effect on both terrestrial and aquatic ecosystems.
- All countries face a major environmental challenge due to pollution caused by single-use plastic items. India piloted a resolution on single-use plastics pollution at the 4th United Nations Environment Assembly in 2019, recognising the urgent need for the global community to address this issue.
- In the recently concluded 5th session of the United Nations Environment Assembly in March 2022, India engaged constructively with all member states to develop a consensus on a resolution to drive global action against plastic pollution.
Hosted by the UN Environment Programme, the United Nations Environment Assembly (UNEA) brings together representatives of the 193 Member States of the UN, businesses, civil society and other stakeholders to agree on policies to address the world’s most pressing environmental challenges.
The overall theme for UNEA-5 is “Strengthening Actions for Nature to Achieve the Sustainable Development Goals“. This highlights the pivotal role nature plays in our lives and in social, economic and environmental sustainable development.
- However, India is not the first country to ban single-use plastics. Bangladesh became the first country to ban thin plastic bags in 2002; New Zealand banned plastic bags in July 2019. China had issued a ban on plastic bags in 2020 with a phased implementation.
What are the plastic waste management rules in India?
- With effect from September 30, 2021, the Plastic Waste Management Amendment Rules, 2021, prohibited the manufacture, import, stocking, distribution, sale, and use of plastic carry bags whose thickness is less than 75 microns.
- From December 31, 2022, plastic carry bags whose thickness is less than 120 microns will be banned.
It means that the ban does not cover all plastic bags; however, it requires the manufacturers to produce plastic bags thicker than 75 microns which was earlier 50 microns. As per the notification, the standard shall be increased to 120 microns in December this year.
The notification clearly mentioned that plastic or PVC banners/ hoardings should have more than 100 microns in thickness, and non-woven plastic (polypropylene) must be more than 60 GSM (grams per square metre).
Non-woven plastic bags have a cloth-like texture but are counted among plastics. Still, plastic or PET bottles, counted among the most recyclable types of plastic, have been left out of the scope of the ban.
In addition, the Indian government has taken steps to promote innovation and create an ecosystem for accelerated adoption and availability of alternatives across the country.
To ensure the effective enforcement of the ban, national and State-level control rooms will be established, as well as special enforcement teams for the purpose of checking the illegal sale and use of single-use plastics. To prevent the movement of banned single-use plastic items between States and Union Territories, border checkpoints have been established.
What is the role of the manufacturer?
Extended Producer Responsibility (EPR) is the responsibility of a producer for the environmentally sound management of the product until the end of its life. The guidelines provide a framework to strengthen the circular economy of plastic packaging waste, promote the development of new alternatives to plastic packaging and provide the next steps for moving towards sustainable plastic packaging by businesses.

What are the challenges?
The ban will succeed only if all stakeholders participate enthusiastically and engage in effective engagement and concerted actions.
However, if we look back at our past, almost 25 Indian States previously banned plastic at the state level. However, these bans had a very limited impact in reality because of the widespread use of these items.
Now the challenge is to see how the local level authorities will enforce the ban in accordance with the guidelines. Banned items such as earbuds with plastic sticks, plastic sticks for balloons, etc., are non-branded items and it is difficult to find out who the manufacturer is and who is accountable for selling because these items will be available in the market even after the issuing of guidelines.
What’s happening on the research and development front?
The consumer needs to be informed about the ban through advertisements, newspaper or TV commercials, or on social media. In order to find sustainable alternatives, companies need to invest in research and development.
The solution to the plastic pollution problem is not the responsibility of the government alone, but of industries, brands, manufacturers and most importantly consumers. Finding alternatives to plastic seems a little difficult, however, greener alternatives to plastic may be considered a sustainable option. For example, compostable and bio-degradable plastic, etc., may be considered as an option.
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.