By Aditya Kalra

NEW DELHI (Reuters). India’s largest dairy producer Amul has written to government urging them to postpone a ban of tiny plastic straws. Amul, India’s biggest milk group, said the proposed ban would negatively impact farmers and increase milk consumption in India.

Amul appealed in a May 28 letter that Reuters reviewed. It was addressed to Prime Minister Narendra Modi ahead of a ban on July 1 straws packed with small amounts of milk products and juices. This market is estimated to have a value of $790 million by an industry group. Amul is responsible for selling billions upon billions of milk cartons that have plastic straws.

This decision has spooked Amul, as well as global drink majors like Coca-Cola (NYSE 🙂 Inc and PepsiCo Inc (NASDAQ:) Inc. It was especially concerning after the government refused to alter its stance and requested that companies switch to other straws. Reuters reported previously.

R.S. signed the letter. According to the $8 billion Amul Group, straws encourage milk consumption. The letter was signed by R.S.

Sodhi stated that a delay “would provide huge relief” for 100 million milk farmers, who “safeguard our food safety in terms of milk or milk products”.

Modi’s office didn’t respond to Reuters’ requests for comment.

According to Reuters, a source who is familiar with government thinking previously stated that straws are a low-utility product and should be replaced by paper straws.

Sodhi did not respond to the letter. However, he said that Amul could have to stop selling straws from packs once July 1st comes into effect.

Beverage packs with juice and milk products, priced between 5 to 30 rupees (7-40 U.S.cens), are very popular in India.

Amul, which is based in Modi’s homeland Gujarat, western India’s Gujarat, has a large following for its plastic bags containing milk and cheese.

Pepsi Tropicana juice and Coca-Cola Maaza, Parle Agro Frooti mango beverages, are all top-selling drinks. According to industry estimates, India sells 6 billion such packs each year.

Praveen Aggarwal from Action Alliance for Recycling Beverage Cartons said drink majors were looking at importing paper straws made in China or Indonesia to meet the ban.

He said, “There will always be disruption.”

Person with knowledge of the matter stated that Parle wrote to the Indian government stating there were not enough alternative straws in India and that import paper and biodegradable options are around 25% more expensive.

Parle Agro’s chief executive Schauna Chauhan stated that the company imported paper straws but this was not sustainable. She stated that the economics of a product priced at 10 rupees is not sustainable.

Pepsi, Coca-Cola and others declined to comment.