Paper stocks in demand amid ban on certain single-use plastic items

New Delhi: Stocks of companies related to paper industry have gained amid a ban on certain Single-Use Plastic (SUP) items that kicked in from Friday.

Over the past one month, some of the paper manufacturers, including Seshasayee Paper, have risen in the range of 3-8 per cent. In contrast, equity benchmark indices Sensex and Nifty have declined 5 per cent during the same period.

The Sensex has fallen by 2,658.48 points or 4.78 per cent in the past one month (May 31-July 1) while the Nifty declined 832.5 points or 5.01 per cent.

During the past one month, shares of Seshasayee Paper and Boards jumped 7.80 per cent, Tamil Nadu Newsprint & Papers rallied 7.07 per cent, Satia Industries gained 5.54 per cent and West Coast Paper Mills went higher by 3.15 per cent.

The ban on single-use plastic, which was announced last year, has come into effect from Friday.

Since June 30, shares of Seshasayee Paper and Boards jumped 7 per cent, Andhra Paper gained 6.21 per cent, Tamil Nadu Newsprint & Papers climbed 4.62 per cent and Satia Industries advanced 4.62 per cent on the BSE.

Among others, Star Paper Mills went higher by 4.14 per cent, Emami Paper Mills gained 3.92 per cent, West Coast Paper Mills (3.83 per cent), Orient Paper & Industries (3.10 per cent), JK Paper (2.93 per cent) and Astron Paper & Board Mill (2.64 per cent).

The ban is in place for SUP items, including earbuds, plastic sticks for balloons, flags, candy sticks, ice-cream sticks, polystyrene (thermocol), plates, cups, glasses, forks, spoons, knives, straws and trays.

Other items include wrapping or packaging films around sweets boxes, invitation cards, cigarette packets, plastic or PVC banners of less than 100 microns, and stirrers.

These plastic products will have to be replaced by environment-friendly biodegradable products, like paper-based alternatives.