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What the 2026 Plastic Waste Rules Mean for Compostable Packaging

On 31 March 2026 the Ministry of Environment, Forest and Climate Change notified the Plastic Waste Management (Amendment) Rules, 2026 (G.S.R. 237(E)). For brand owners, retailers and converters, the compliance bar has moved again. This is a practical, buyer-focused reading of what changed and where certified compostable packaging fits in.

Sakshi Nikam8 min read

What changed in the 2026 Plastic Waste rules?

The Plastic Waste Management (Amendment) Rules, 2026 were notified on 31 March 2026 and came into force on publication in the Official Gazette, following a draft circulated in June 2025. The headline change is a steep escalation of mandatory recycled-content targets for conventional plastic packaging, alongside a maturing Extended Producer Responsibility (EPR) framework administered through the CPCB portal.

For rigid plastic packaging (Category I), the recycled-content obligation rises from 30% in 2025-26 toward 60% by 2028-29. Category II packaging moves from 10% to 20%, and multi-layered packaging (Category III) from 5% to 10% over the same window. Recycled plastic used to meet these targets must conform to IS 14534:2023 and be labelled accordingly.

How is compostable packaging treated under EPR?

Compostable plastics are handled as a distinct EPR stream. Under Schedule II of the Plastic Waste Management Rules, compostable plastic packaging sits in Category IV, separate from biodegradable plastics in Category V, a distinction formalised in the March 2024 amendment. This matters because the recycled-content targets that apply to conventional plastic are structured differently for compostable material, which is designed to enter organic-waste and composting streams rather than mechanical recycling.

In practice, that gives certified compostable packaging a cleaner compliance story: it does not fit the recycled-content logic of conventional plastic, and it aligns with end-of-life recovery through composting. The trade-off is that eligibility depends entirely on certification. Compostable packaging must carry the appropriate BIS marking against IS 17088 and hold mandatory CPCB certification to be recognised as compostable under the rules.

Are compostable carry bags exempt from the single-use ban?

Conventional plastic carry bags in India must be at least 120 microns thick, and a broad list of single-use plastic items remains banned. Carry bags certified compostable under IS 17088 are treated as the recognised alternative to conventional plastic bags rather than being caught by the same thickness rule. The critical condition is certification: a bag merely labelled 'biodegradable' without a valid IS 17088 certificate and CPCB registration can still attract penalties.

For buyers, the safe position is simple. Do not rely on marketing language. Ask for the IS 17088 test report and the supplier's CPCB certification before switching a product line, and keep those documents on file as part of your own EPR audit trail.

What should packaging buyers do now?

First, map your packaging portfolio to the EPR categories and confirm which items are conventional plastic (facing rising recycled-content targets) versus compostable (Category IV). Second, register or update your details on the CPCB EPR portal and reconcile declared quantities with your actual purchasing. Third, for every compostable item you buy, collect the certification pack: IS 17088 test data, BIS marking evidence, and CPCB certificate.

Anjaneya Bio Products supplies compostable granules, films and bags manufactured against CPCB and validated through CIPET-accredited testing, with certification documentation available on request so buyers can substantiate compostable claims during EPR reporting.

Key takeaway

The Plastic Waste Management (Amendment) Rules, 2026 (notified 31 March 2026) sharply raise recycled-content targets for conventional plastic, while certified compostable packaging is handled separately as EPR Category IV. Compostable only counts if it carries IS 17088 certification and CPCB registration, so buyers should demand documentation, not marketing claims.

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