Balancing Responsibility and Reality: Rethinking India's Recycling Cost Structure

SMPL
New Delhi [India], April 19: India's push toward environmental responsibility took a bold step with the government's updated rules under the E-Waste (Management) Rules, 2022. The revised framework introduces significantly higher payments for recycling bulkier appliances like air conditioners, refrigerators, and televisions. While the objective--to boost formal recycling and reduce environmental harm--is both necessary and commendable, the method of implementation has sparked legitimate concerns among major OEMs such as Daikin, Hitachi, and Samsung.
As the founder of Foxx Compliance Services, an authorised e-waste recycler operating in the formal sector, I've witnessed firsthand both the urgent need for strong recycling mechanisms and the challenges posed by abrupt regulatory shifts.
The core issue manufacturers are flagging is the steep increase in mandated recycling costs--a shift that could disrupt their pricing models and strain operational budgets. It's important to recognize that recycling, especially for large household appliances, is resource-intensive. It requires trained manpower, specialized infrastructure, safe dismantling protocols, and environmentally sound disposal of components such as refrigerants and compressors. Yes, the cost is real--but so is the need for fairness and practicality in how those costs are allocated.

While recyclers like us welcome the emphasis on formalization and compliance, we must also acknowledge that transparency in cost determination is lacking. The current cost benchmarks appear disconnected from on-ground realities--set without adequate consultation with stakeholders who actually bear the operational load.
Let's be clear: increasing recycling cost obligations should not be seen as a punishment. It is a shared responsibility to clean up the mess created by rapid consumerism. However, the formula for calculating these costs must be realistic, data-driven, and regionally adaptive. The cost of collection, transportation, safe dismantling, and environmentally compliant disposal varies widely across the country. One-size-fits-all pricing risks alienating producers and deterring genuine efforts.
Moreover, the suddenness of the implementation has left many manufacturers scrambling to revise their compliance strategies, with little time for adjustment or planning. Compliance should not be a shock--it should be a journey guided by clear timelines, collaborative engagement, and shared objectives.
What India needs is a robust cost framework co-developed by authorities, producers, and authorised recyclers. Transparent cost models, based on actual field data, must reflect the nuances of each product category. For example, recycling an air conditioner is significantly more complex and expensive than recycling a television or a fan. Recognizing such differences in the pricing structure is not just fair--it's essential for a sustainable system.

At Foxx Compliance Services, we strongly support the government's vision for a cleaner, greener India. But we also urge policymakers to listen to the voices of the ecosystem they're trying to regulate. Let's build a recycling economy that is not just ambitious but also achievable.
In conclusion, as India takes firm steps toward environmental stewardship, the focus must shift from mere enforcement to enabling compliance. Let's ensure that recycling costs are not just imposed--but justified, understood, and accepted by all stakeholders. Only then can we achieve long-term, meaningful impact in our fight against e-waste.
By Shashi Shekhar, Founder, Foxx Compliance Services (Authorised E-waste Recycler)
For more information, please visit: https://foxxinternational.com/
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