Germany has come up with a packaging ordinance to ensure the use of materials that are eco-friendly and can be recycled. The ordinance is a guideline for reducing municipal wastes.

The rules on transport packaging came in 1991, intermediate packaging in 1992 and shelf packaging in 1993. Under these rules, exporters will either have to take back the entire packaging material or will have to take the services of the Green Dot agency for the disposal of the wastes. But Green Dot will take care of only shelf packaging and not transport packaging.

But Ashok Jha, joint secretary in the Union commerce ministry, recognises the hidden agenda of protectionism in the ordinance. "On the face of it, these regulations appear to be value-neutral as these are applied indiscriminately to both domestic and foreign producers. But in effect this will protect German manufacturers who have a beginner's advantage in developing alternative packaging material, whereas the outsider will be obliged to incur additional costs for environmental protection in Germany."

Meanwhile, anticipating stringent measures, the Packaging Institute of India is already developing packaging materials and designs to keep prices and volume of packaging low. Considerable research is going on in the area of jute to develop eco-friendly packaging material. The Calcutta-based Indian Jute Industries Research Association has developed jute reinforced with plastic, which has been found extremely useful in packing engineering products and as a substitute for wooden cartons used in transporting tea and apples.