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Economic and Operational Impact of the Single-Use Plastic Ban on Small Businesses: A Study with Reference to Wardha City, Maharashtra, India
Summary
A new study looked at what happened when India banned single-use plastics in a small city, and found that small shops and food vendors got hit hard—some saw packaging costs jump 150-300% while bigger businesses mostly escaped the impact. This matters because it shows that well-meaning environmental policies can create unfair burdens if they're not designed with small business owners in mind, which is worth considering as more places move to reduce plastic (and the microplastics it can shed into our food and bodies) through similar bans.
Abstract The alarming global issue of plastic pollution has compelled governments worldwide to enact legislation to curtail the production, distribution, and use of single-use plastic products (SUPs). In India, the Ministry of Environment, Forest, and Climate Change (MoEFCC) implemented the Plastic Waste Management Amendment Rules, 2021. These regulations, which took effect on July 1, 2022, prohibit nationwide 21 categories of SUP items. This initiative builds upon the existing plastic ban in the state of Maharashtra in March 2018. While these regulatory measures appear environmentally beneficial, they have significant socio-economic impact, particularly for micro, small, and medium-sized enterprises (MSMEs) and the informal business sector as well. This paper examines the economic and operational effects of the plastic ban on small enterprises in Wardha city, a Tier-3 agro-commercial urban center in Vidarbha region of Maharashtra. A mixed-methods approach is utilised. It integrates primary survey data from 120 small business operators across six sectors with secondary data analysis. The study delineates various impacts, including rise in packaging costs (150–300% in the food-service sector), diminished profit margins, insufficient access to affordable alternatives, and increased regulatory apprehension. The study finds that the ban has adversely affected the smaller businesses more than larger ones, which are mostly protected. These problems are made worse by things that are unique to Wardha, such as its agricultural economy, semi-formal retail system, and limited access to public compliance support. The paper concludes with policy recommendations for a more equitable, rational and regionally calibrated implementation framework.