Government Mandates 40% Recycled Content in Food Packaging from FY27

New Delhi, April 01, 2026: The Government of India has issued final guidelines mandating the use of 40% recycled content in food-grade PET packaging from April 1, 2026, marking a significant step toward strengthening the country’s circular economy framework.

The move, aligned with the broader sustainability vision of Narendra Modi, is expected to accelerate the adoption of recycled materials in the food and beverage sector while reducing reliance on virgin plastics.

The Ministry of Environment, Forest and Climate Change (MoEFCC) has outlined that brands and producers must comply with the 40% recycled content requirement in FY 2026–27. Additionally, companies can carry forward any shortfall in meeting the earlier 30% mandate for FY 2025–26 for up to three years, provided at least one-third of the deficit is addressed annually.

The policy builds on the existing Plastic Waste Management Rules, 2016, which mandate a gradual increase in recycled content usage, targeting 60% by 2028–29.

Earlier this year, the Food Safety and Standards Authority of India (FSSAI) authorised 17 recycled PET manufacturing plants, unlocking an estimated capacity of 3 lakh tonnes. This development is expected to support the growing demand for recycled materials under the new mandate.

Goutham Jain, Director General, Association of PET Recyclers (APR) Bharat, said, “We wholeheartedly welcome the government’s progressive step which has reinforced confidence in the vision of ensuring circular economy. The move is set to significantly ease the supply chain disruptions caused due to recent geopolitical uncertainties impacting both availability and pricing of virgin PET. With the current authorised capacities in place, India is well positioned to cater to up to 50 per cent of the total PET requirement for bottling applications through recycled material.”

He further added, “The mandate is expected to accelerate the adoption of recycled PET (rPET) across the food and beverage sector, creating robust demand for high-quality recycled materials while strengthening the domestic recycling ecosystem. By closing the loop on plastic use, the policy will play a pivotal role in reducing plastic waste leakage into the environment and minimizing dependence on virgin plastics.”

Industry estimates suggest that 15–18 food-grade rPET recycling facilities have already been established across India, with a combined capacity of around 3 lakh metric tonnes and investments ranging between ₹9,000–10,000 crore. These facilities are equipped with advanced technologies and adhere to international standards set by regulatory bodies such as the European Food Safety Authority (EFSA) and the US Food and Drug Administration (FDA).

The new guidelines are expected to strengthen India’s recycling ecosystem, promote sustainable packaging practices, and contribute to long-term environmental goals by reducing plastic waste and enhancing resource efficiency.