Indian street food packaging economics: Reuse models could slash emissions and boost employment, claims report

20 Nov 2023 --- Indian informal street food vendors are potential game-changers in the global fight against plastic waste, according to a recent report on reusable packaging conducted by Zero Waste Europe (ZWE), Searious Business and the National Hawker Federation (NHF).

By exploring the economic dynamics of implementing a proposed reuse system across five Indian cities — Kolkata, Delhi, Mumbai, Nagpur and Ranchi — the report offers insights into regional variations and considerations.

“India’s thriving street food sector, currently reliant on single-use plastics (SUP) for packaging, faces a pressing need for sustainable alternatives. This report delves into the economic feasibility of a novel reuse system tailored to Indian street food vendors,” the report states.

Transitioning about 80,000 street food vendors to a reusable system in Kolkata alone would reduce plastic waste by more than 86%, create more than 2,250 jobs and provide a return on investment of 21% with a payback period of 2.3 years, highlights the report. In Delhi, the economic benefits are even more promising due to economies of scale. 

“Sensitivity analysis underscores the significance of critical factors in optimizing the system, like material choice, retention time, return rate, deposit amounts, government incentives and others,” reads the report. 

We have reached out to ZWE, Searious Business and NHF for more details on how the study was conducted and what relevance the findings could possibly have to Western quick service restaurants.

Building a reuse case
The report advocates for the implementation of a comprehensive reuse system, encompassing the following key elements:
Transitioning about 80,000 street food vendors to a reusable system in Kolkata alone would reduce plastic waste by more than 86%, finds the report.

• Durable reusable packaging: This involves the design of reusable items such as plates, bowls, cups, and takeaway containers to withstand multiple uses and washing cycles.
• Washing systems: The report recommends the installation of washing systems at various levels, including street, vendor and area levels, with a specific emphasis on area-level washing systems identified as the most promising option.
• Efficient distribution: The optimization of packaging item distribution through centrally organized and well-managed transportation systems.
• Convenient collection and return points: The proposal suggests the incorporation of flexible collection and return points for reusable containers, enhancing consumer convenience in the process.
• Logistics management: A logistics management approach is proposed, with a primary focus on establishing return systems and implementing packaging monitoring. The report introduces a deposit return system featuring barcode or QR code-enabled tracking for effective monitoring.
• Third-party logistics entity: To ensure the smooth functioning of the proposed system, the report recommends the establishment of a third-party entity tasked with managing the logistics of reusable packaging. 

“The numbers in India are so astronomical — it’s hard to visualize. So many vendors, so many people, so much packaging. If there is a compelling business case for reusable packaging in such a complex scenario, it can work anywhere. It’s simple — reuse adds up,” remarks Willemijn Peeters, CEO of Searious Business.

Challenging status quo
The NHF is emphatic in its demand for change, urging for a just transition for street vendors. The report states India’s street vendors provide over 600 million affordable meals daily.

“Street vendors face the hazards of climate change every day and clearly understand the role of plastics in the triple threats of climate, biodiversity and pollution. We embrace reuse systems and ask the Government of India to provide an enabling regulatory framework and infrastructure,” says Saktiman Ghosh, general secretary of the NHF.

The report’s findings challenge the status quo and emphasize the potential for change through the large-scale adoption of reuse systems. As India’s street vendors provide over 600 million affordable meals daily, the transition to reusable systems benefits the environment and presents a unique opportunity for economic growth and social justice.

“By the industry’s estimates, India’s SUP ban targets only 2–3% of total plastic produced. The ban conspicuously excludes plastic packaging used by FMCGs, such as sachets and other multilayered packaging, which accounts for about 50% of the problem,” details Mecanzy Dabre, deputy general secretary of NHF.

“If street vendors can transition all their internal operations to reusables, the plastic waste still generated would be due to packaging choices made by FMCGs.”

Industry and legislative support needed
Satyarupa Shekhar, an independent plastics activist, points out the “glaring mismatch” between pledges and actions by major plastic polluters: “Unilever and Nestle repeatedly say that reuse is economically prohibitive, but we now have Indian street vendors make the best business case for large scale reuse systems — at a fraction of the marketing budgets of these FMCGs.”The NHF demands a “just transition” for street vendors from SUP to reuse systems.

Joan Marc Simon, director and founder of ZWE, underlines the importance of legislation in favor of reuse systems and calls for India and other committed regions to pass laws supporting the same.

“Evidence shows that reuse systems in street-vending are the most sensible and economical way to prevent waste and strengthen the local economy. Yet, to be effective, they need to be rolled out at scale and this can only happen if public institutions provide the right legal framework.” 

“We call India, Europe and any other country or region committed to move away from plastic pollution to pass legislation in favor of reuse systems.”

In light of the report and the negotiations for a legally binding plastics treaty, the NHF demands a “just transition” for street vendors from SUP to reuse systems. 

The federation also urged the Indian delegation at INC-3 to join other progressive delegations, scientists and civil society organizations in calling for a Global Plastics Treaty that establishes strong production controls, is legally binding, time-bound, sets ambitious targets and system guidelines to implement reuse and refill to accelerate the transition away from SUP. 

Furthermore, NHF calls for a treaty that allows a just transition to safer and more sustainable livelihoods for workers and communities across the plastics supply chain.

By Radhika Sikaria