Thai plastic bag ban sends factories into dire straits

Top left: Banners informing customers about the ban on single-use plastic bags at a shopping mall in Bangkok, as major Thai retailers kicked off the new year with the curbs. Above: A woman using a shopping bag at a shopping centre in Bangkok on Jan 2
A woman using a shopping bag at a shopping centre in Bangkok on Jan 2.PHOTO: REUTERS, AGENCE FRANCE-PRESSE
Top left: Banners informing customers about the ban on single-use plastic bags at a shopping mall in Bangkok, as major Thai retailers kicked off the new year with the curbs. Above: A woman using a shopping bag at a shopping centre in Bangkok on Jan 2
Banners informing customers about the ban on single-use plastic bags at a shopping mall in Bangkok, as major Thai retailers kicked off the new year with the curbs.PHOTO: REUTERS, AGENCE FRANCE-PRESSE

Manufacturers forced to slash prices to woo shops as number of customers falls drastically

A plastic bag ban that came into effect last week to force shoppers to go green is threatening to sink makers of the environmentally unfriendly disposable into the red, even as plastic bag factories slash prices to woo retailers.

An agreement between the Thai government and major retailers across Thailand to stop providing free single-use plastic bags came into effect on Jan 1 following publicity surrounding the deaths of marine life that had consumed plastic bags and a subsequent intense campaign against the products.

In August last year, an orphaned baby dugong named Mariam, which won hearts in Thailand, died from an infection. Bits of plastic were found in its stomach.

According to Greenpeace, Thailand is the world's sixth biggest contributor of ocean waste and produces more than 2.2 million tonnes of plastic waste a year.

"The ban is the only way we can tackle the issue," said Dr Thon Thamrongnawasawat, a marine biology professor at Kasetsart University.

Dr Thon, who helped the government draft the roadmap to ban and limit plastic products in Thailand, added: "Next to go are plastic straws and single-use plastic cups."

But even as environmentalists are hailing the initiative, Thailand's 1,000 plastic bag factories are suffering from the ban, with some expecting to close down in months if the government does not provide some form of assistance.

"The effects are really severe," said Mr Naphat Thipthanakit, vice-president of the Thai Plastic Industries Association and the owner of a plastic bag factory near Bangkok which employs 160 workers.

Three in four of Mr Naphat's customers are retail chains and include malls, coffee shops and restaurants that joined the "Everyday Say No to Plastic Bags" alliance. They have stopped ordering plastic bags from his factory since October last year, resulting in a loss of most of his 14 million baht (S$624,840) monthly revenue.

"The problem lies with the government's unclear messages and plans," he said, pointing out that the bags his factory makes can be reused many times, as they are up to 50 microns thick. But retailers just stopped ordering the bags.

"It's the thin single-use plastic bags of 12 microns that create problems for the environment, not the thicker bags like ours," he added.

  • >2.2m

  • Amount of plastic waste in tonnes that Thailand produces a year, according to Greenpeace.

  • 1,000

  • Number of plastic bag factories in Thailand that are suffering from the ban, with some expecting to close down in months if the government does not providesome form of assistance.

According to Mr Naphat, revamping the machinery so the factory can manufacture other plastic products would cost too much.

"I'd better give up on business and just retire. To reap the benefits of new investments will take too long for me," said the 60-year-old, who has been in the trade for more than 40 years.

To make matters worse for the manufacturers, eight TV channels signed an agreement with the Ministry of Natural Resources and Environment on Jan 2 to blur images and footage of single-use plastic bags.

Calling the censorship "very unfair", Mr Apiphop Phungchaikul, deputy secretary-general of the Federation of Thai Industries, said the current initiative is not the right answer, and that the key is to properly manage plastic waste.

The ban has sparked a chain reaction that has resulted in about a 30 per cent drop in customers, according to Mr Apiphop. It has forced manufacturers to slash their prices to woo shops that have yet to impose the ban.

 
 

The wholesale price is now 48 baht per kg compared with about 53 to 54 baht early last year, said Mr Tanatchai Lertboonyaphan, manager of Thai Hong Plastic. His company supplies bags mainly to small grocery shops that have yet to participate in the programme.

"I predict that half of all the plastic bag factories will shut down in a few years," he said.

A version of this article appeared in the print edition of The Sunday Times on January 12, 2020, with the headline 'Thai plastic bag ban sends factories into dire straits'. Print Edition | Subscribe