FMCG Sector: ANRF and BioE3 are Shaping India’s Bio-based Technology

India’s recent public-private partnership (PPP) initiative, the Anusandhan National Research Foundation (ANRF), and the BioE3 policy (Biotechnology for Economy, Environment, and Employment) are set to strengthen the bioeconomy through academia-industry collaboration. The BioE3 policy, in particular, advocates for sustainable and bio-based alternatives to traditionally chemical-based industries. In this context, the Fast-Moving Consumer Goods (FMCG) sector, especially soap production, has emerged as a prime area for sustainable transformation.

This Q&A explores how the ANRF and BioE3 policy can drive change in this sector.

Why is the FMCG sector, specifically soap production, a focus for the BioE3 policy and ANRF initiatives?

The FMCG sector, particularly soap production, is a significant area for the BioE3 policy and ANRF initiatives due to its heavy reliance on palm oil, which contributes to deforestation and greenhouse gas emissions. Transitioning to bio-based materials aligns with India’s goals for sustainable development and climate action, making the FMCG sector an ideal candidate for bioeconomy-focused innovation.

How does palm oil use in soap production impact the environment?

Soap production relies on palm oil for its fatty acids. However, around 90% of palm oil is sourced from plantations in regions like Borneo and Sumatra, where deforestation is common. This has severe environmental impacts, including habitat loss and greenhouse gas emissions. The high yield and affordability of palm oil make it difficult to replace, but finding alternatives is essential for environmental sustainability.

Are there emerging technologies that can replace or reduce palm oil usage in soaps?

Yes, emerging synthetic biotechnologies have the potential to replace certain functions of palm oil in soaps. These technologies can create artificial fatty acids that mimic the structure palm oil provides in soap. Local, bio-based alternatives, like plant-based polysaccharides, can also substitute some components, helping reduce the total reliance on palm oil.

What challenges exist for replacing palm oil in soaps with bio-based alternatives?

Several challenges make this transition complex. Bio-based alternatives can be costly and difficult to scale. High land and infrastructure costs, a lack of readily available technology, and limited regulatory support also pose barriers. Additionally, until synthetic alternatives are widely available, the soap industry remains dependent on sustainable sources of palm oil, both domestic and imported.

How can the ANRF and BioE3 policy support the development of sustainable materials for soap production?

The ANRF and BioE3 policy can play a pivotal role by funding R&D for sustainable materials in soap production. They encourage academia-industry collaborations to develop bio-based or biosynthetic materials that meet both environmental and industry standards. This support includes grants for innovation and recognition of the need for transforming legacy products, such as soap, into sustainable alternatives.

What initiatives has the Indian government taken to promote sustainable palm oil production domestically?

The National Mission on Edible Oils-Oil Palm, launched in August 2021, aims to increase India’s palm oil production. The mission’s goals include expanding oil palm production to 10 lakh hectares and increasing crude palm oil output to 11.20 lakh tonnes by 2025-26. This initiative seeks to meet demand sustainably by adhering to “No Deforestation, No Peat” policies to protect biodiversity.

What regulatory changes are needed to promote sustainable soap production in India?

Current regulations rate soap quality based on fatty material content, which can create misconceptions about quality. A shift to performance-based standards, similar to those in developed countries, is needed. Such standards would encourage innovation and focus on environmental sustainability rather than just compositional criteria. Additionally, sustainabilityfocused product labeling could help consumers make informed choices.

What role does consumer awareness play in promoting sustainable FMCG products?

Consumer awareness is vital for driving demand for sustainable products. By mandating labeling that shows a product’s sustainability rating, based on factors like procurement and production practices, consumers can make informed choices that support environmentally-friendly brands. This demand can incentivize companies to adopt more sustainable practices.