CHENNAI: Prices of biodegradable bags, widely used by petty shops and hotels, have sharply increased across Tamil Nadu over the past month, with manufacturers attributing the rise to the ongoing US–Iran conflict impacting crude oil costs.
Industry sources said biodegradable bags, though largely made from plant-based and organic materials such as cornstarch, PLA (polylactic acid) and PBAT, still depend partly on crude oil derivatives for production.
“Nearly 20-30 per cent of the raw material involves crude oil-based substances. With crude prices rising by around 20-30 per cent, the manufacturing cost has gone up significantly,” said a manufacturer from Uthukottai.
According to industry estimates, the cost of producing one kilogram of biodegradable bags has increased from around Rs 127 to Rs 170, while the market price has surged from Rs 150 to Rs 250 per kg.
The price rise has begun to affect retail usage. Small traders and shopkeepers are now limiting the use of biodegradable bags to cut costs.
“We provide bags only when customers purchase items worth Rs. 100 or more. Otherwise, we give paper covers,” said a petty shop owner at Parrys Corner.
Biodegradable bags had gained popularity as an eco-friendly alternative to plastic, which poses longterm environmental hazards. However, the current price surge is raising concerns about affordability and continued adoption, particularly among small businesses.
Largely made from plant-based and organic materials such as cornstarch, PLA (polylactic acid) and PBAT, biobags still depend partly on crude oil derivatives