Bio-plastics emerge as green alternative revenue play for sugar producers

With a high differential in pricing vis-a-vis normal plastics, and backed by a generous Uttar Pradesh policy, sugar producers eye new opportunities in the climate-friendly product

As ethanol emerges as a source of alternative revenue for sugar companies due to differential pricing formulas and fixed buying by oil marketing companies, bio-plastics or Polylactic Acid (PLA)-based plastics are also gradually becoming a new avenue for sugar companies looking to diversify their revenue stream. One kilogramme of PLA-based bio-plastics is priced multiple times more than normal plastic. 

 

Not surprisingly, Balrampur Chini Mills, one of India’s largest integrated sugar companies, in February this year announced a Rs 2,000 crore forward integration project which will be the country’s first-ever 'industrial bio-plastic' plant. 

 

To boost the sector, the Uttar Pradesh government