Stocks of packaging cos tank as govt bans plastic packing

MUMBAI: Hit by the government's ban on the use of plastic for packaging gutka and other tobacco products, shares of plastic packaging firms nosedived by up to 10.04 per cent on the Bombay Stock Exchange today.

The Environment Ministry had yesterday issued a notification banning the use of plastic for packaging gutka and other tobacco products after it was pulled up by the Supreme Court for not implementing the law.

In a sharp reaction to the move, shares of Cosmo Films tumbled by 9.63 per cent to close at Rs 99 on the BSE. In intra-day trade, the stock tanked by 10.45 per cent to a 52-week low of Rs 98.10.

Besides, profit-taking pulled down shares of container and packaging firm Uflex which dropped by 9.59 per cent.

Similarly, Polyplex Corporation slumped by 10.04 per cent and Jindal Poly Films went down by 2.71 per cent.

The Plastic Waste (Management and Handling) Rules, 2011 also bans the packaging of foodstuffs in recycled plastic or compostable plastic.

Meanwhile, the BSE benchmark Sensex closed the day with a loss of 261.49 points at 17,775.70.