Paper Stocks Zoom as Govt May Ban Single Use Plastic

  • Stock Market News
Paper Stocks Zoom as Govt May Ban Single Use Plastic
Credit: © Reuters.

By Aditya Raghunath -- The Indian government has come up with a draft regulation that can ban single-use plastic for products like cigarette packets, candy wrappers, ice-cream sticks, and film wraps across sweet boxes among others.

This caused share prices of paper stocks like Emami (NS: EMAM ) Paper Mills Ltd (BO: EMAP ), West Coast Paper Mills Ltd (NS: WSTC ) , and Orient Paper and Industries Ltd (NS: ORPP ) to shoot up on March 16. Emami Paper ended 20% higher as it was locked in an upper circuit and closed the day at Rs 116.55. Astron Paper & Board Mill Ltd (NS: ASTO ) closed 15% up at Rs 49.5 while West Coast Paper was up 8% at Rs 269. Tamil Nadu Newsprint And Papers Ltd (NS: TNNP ) closed up 5% at Rs 150 while Orient Paper also gained 4.22% to close at Rs 29.65.

A Financial Express report said that the government has proposed to ban single-use plastics such as plastic sticks in ear-buds, balloons, candy-and-ice cream sticks, and plastic flags to be banned from January 1, 2022, while disposable plates, cups, glasses, cutlery, straw, trays, plastic wrapping around sweet-boxes, invitation cards, cigarette packets, etc, and plastic/PVC banners less than 100 microns thick be banned from July 1, 2022.

This is good news for paper stocks that have seen massive declines in demand from the newsprint industry as people’s reading habits changed during the pandemic, leading to closures of several editions across the country.

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