Essential Information

• India is rolling out a “floor pricing” policy for e-waste recycling, requiring a minimum compensation of ₹22 (~$0.25 USD) per kilogram.
• Samsung and LG are contesting the policy, stating it could drastically escalate recycling expenses—up to 15 times higher than existing fees.
• The Indian government seeks to regulate the e-waste sector, where a significant 80% of recycling is conducted by informal scrap dealers.

The Policy: Progress Towards Reform

The new e-waste policy in India establishes a “minimum payment” of ₹22 per kilogram for the recycling of electronic waste. The intention is to promote formal recycling practices and decrease dependency on the informal sector, which currently processes the majority of the nation’s e-waste. As indicated in court documents, only 43% of India’s e-waste was recycled last year, and the government views this policy as a pathway to enhance that statistic.

By instituting a minimum cost, India aspires to render e-waste recycling a more viable and appealing venture for certified recyclers. This could, in theory, result in superior environmental practices, increased safety for workers, and improved monitoring of hazardous substances.

Corporate Resistance: Costs versus Consequences

However, prominent electronics brands such as Samsung and LG are voicing their opposition. They contend that the new regulation presents an excessive financial strain on firms already committed to responsible recycling. Samsung asserts that the updated rate is “5-15 times” higher than current expenditures, while LG cautions that the policy equates to “exploiting companies and imposing taxes,” failing to confront the fundamental issues regarding India’s e-waste crisis.

Detractors claim that the policy may dissuade companies from engaging in India’s electronics industry or could result in rising costs for consumers. Furthermore, they argue that merely boosting payments to recyclers does little to remedy systemic challenges such as insufficient infrastructure, lack of public awareness, and enforcement of existing laws.

Is Floor Pricing the Appropriate Approach?

Though well-meaning, the floor pricing policy might not be the definitive solution India envisions. Experts highlight that without concurrent investments in recycling infrastructure, public outreach, and the formalization of the informal sector, the policy risks being ineffective.

India’s e-waste landscape is intricate. Informal recyclers, who often operate under hazardous and unregulated circumstances, are heavily embedded in the system. Simply increasing payments for recycling does not ensure that these entities will be supplanted or that recycling quality will improve. Indeed, it may merely transfer the financial load without addressing the fundamental inefficiencies.

Global Perspective: Insights from the EU

India is not the only nation facing challenges concerning e-waste. The European Union, for instance, has enacted stringent regulations necessitating that smartphone batteries be user-replaceable by 2027. The EU also mandates that producers collect 63% of portable battery waste by 2027 and 80% of lithium battery waste by 2031. These regulations are supported by strong infrastructure and enforcement frameworks—elements that India currently lacks.

India could gain from employing a more comprehensive strategy—integrating financial incentives with regulatory oversight, public-private collaborations, and consumer education. Absent these components, floor pricing may prove to be a temporary fix for a much larger issue.

What Actions Can Consumers Take?

While discussions surrounding policy continue, consumers can proactively manage their own e-waste. In countries like the U.S., retailers such as Best Buy and Home Depot offer recycling programs for outdated electronics. In India, consumers can seek out certified e-waste collection centers or inquire with retailers about recycling possibilities when