AI generated image. Source Freepik

India’s food safety regulator has granted final authorisations to a total of 17 recycled PET (r-PET) manufacturing facilities, a move expected to unlock nearly 300,000 tonnes of additional capacity for food-grade recycled packaging and strengthen the country’s circular packaging ecosystem. The approvals mark a significant step in enabling brand owners to scale the use of recycled content in beverage bottles and other food contact applications, while also signalling greater regulatory clarity for recyclers and investors.

Deepak Rungta, Managing Director of Rungta Eco Extrusions — one of the facilities that has received FSSAI permissions — noted that although the manufacturing units had secured approvals earlier in the year, these were provisional because the regulator was still in the process of assessing quality benchmarks. “All the units had provisional registrations because there was still uncertainty around the quality of the material,” he said, explaining that authorities had opted for a cautious approach while audits and technical evaluations were ongoing.
According to Rungta, this interim arrangement posed practical challenges for market uptake. Brand owners were reluctant to procure recycled resin under short-term licences due to compliance risks linked to packaging products that would remain in circulation even after a recycler’s approval period ended. “If a brand makes bottles and sends them to the market, and the recycler’s registration expires or is cancelled in the meantime, it becomes a serious concern,” he explained.
Following comprehensive inspections and verification of operational standards, permanent authorisations have now been issued to the facilities, a development that is going to enhance confidence across the packaging value chain. With final registrations in place, recyclers anticipate that sourcing decisions by brand owners will become more stable and systematic, supporting long-term supply arrangements.
Rungta also highlighted that policymakers had earlier exercised restraint in enforcing recycled content targets under Extended Producer Responsibility (EPR) rules, largely because only a limited number of facilities held permanent food-grade approvals. With this regulatory bottleneck now easing, he believes concerns about the industry’s preparedness are likely to diminish.

On the demand front, he observed that recycled PET is currently witnessing robust offtake, driven by elevated virgin polymer prices and tight supply conditions. However, he characterised this as a cyclical market dynamic rather than a lasting structural shift. The industry, he added, continues to seek quicker finalisation of pending draft policy notifications to provide greater long-term certainty, encourage investment, and sustain momentum in India’s transition towards circular packaging.

Adding to this, Goutham Jain, Director General, APR Bharat, said, “With the mandate requiring a minimum 40% recycled content coming into force, the timing of long-term authorisations for these 17 r-PET facilities is significant. These plants are already catering to industry needs and are now better positioned to meet the growing demand. Despite ongoing geopolitical uncertainties globally and rising input costs, India’s r-PET recycling ecosystem remains strong and well-placed to support the domestic packaging and bottling sectors. In fact, the industry can comfortably cater to nearly 45–50% of the PET demand through recycled material, reducing reliance on virgin resin and strengthening circularity.”