In February this year, Balrampur Chini Mills, one of India's largest integrated sugar companies, announced an investment of ₹2,000 crore in what would be India's first bioplastics factory.
Bioplastic, or Polylactic Acid (PLA)-based plastic, comes from organic and renewable sources such as biomass. Unlike traditional plastic, which is derived from petroleum, bioplastic is biodegradable.
That may be a reason why it gets government support. For instance, the Uttar Pradesh government a few months back announced a slew of incentives.
To sweeten the deal, bioplastic fetches prices several times higher than traditional plastic and demand for it is surging with concerns about the environmental impact of plastics.
Sugarcane-based bioplastic is one of several types; others are made from a variety of sources, including corn, starch, soy proteins, yeast, shellac, and waste material.
"Our plant will also be completely fuelled by bio energy, green energy, renewable energy, whatever you want to call it. This is also going to be a global first, so the environmental impact of our PLA will be even, like I would say, a fraction of what it is in the whole world today," Balrampur Chini Executive Director Avantika Saraogi told Business Standard recently.
Unsurprisingly, bioplastics are being seen as a second emerging alternative revenue stream for sugar companies after ethanol.
"Yes, bioplastics would definitely create an additional revenue stream for the sugar industry, but it remains to be seen how much sugar can be diverted for this in times of shortage, unless of course there is a quantum jump in India's sugarcane acreage or production of sugar," says a senior industry person who does not wish to be named.
Sugarcane-based bioplastics
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