India launches biodegradable tax stamp to reduce plastic use in liquor labeling
India has developed a new
biodegradable tax stamp
to replace plastic-based security labels widely used in the country's liquor industry. The move, led by a government agency, aims to reduce plastic use and support India's sustainability goals. With over 30 billion tax stamps used each year—mostly made from polyester—this shift could significantly cut plastic waste while strengthening security in
excise labeling
.
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Government-backed material replaces plastic tax stamps
A new tax stamp made from biodegradable engineered paper has been introduced by the National Research Development Corporation (NRDC), which works under the Ministry of Science and Technology. The stamp is plastic-free and includes tamper-evident layers, QR codes, high-security inks, and holographic features. It is already being used in Ladakh and is expected to be adopted more widely in India.
'We have already supplied over 1 crore 'green' labels (tax stamps) to Ladakh and are currently supplying more than 4 crore such labels each quarter to the Uttarakhand government. NRDC is also the nodal partner of (World Intellectual Property Organisation) WIPO Green. Here we identify the green technologies all over the world and put them in the WIPO database,' said Lakshminarayan, Business Development head of NRDC.
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Part of India's larger green strategy
India's liquor labeling system has long relied on plastic-based stamps, even as the country banned many single-use plastics. This innovation offers a domestic alternative that matches global environmental standards and supports India's goal of reducing its plastic footprint.
The biodegradable stamp is part of a broader national policy shift. Under Prime Minister Narendra Modi, India has increased efforts to integrate green technologies across sectors. Programmes such as Make in India and Atmanirbhar Bharat are now being aligned with eco-friendly product development.
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'Biodegradable tax stamp developed by NRDC is a part of India's initiation into regenerative economy which is going to be an essential component of the next industrial revolution,' said Union Minister of State for Science and Technology Dr. Jitendra Singh.
NRDC, working since 1953 on research for industrial use products, is also exploring the use of biodegradable stamp technology beyond liquor excise labeling. Future uses may include pharmaceutical packaging, agrochemical labeling, and food-grade applications. The agency is also planning to secure international intellectual property rights and explore export licensing, especially in countries involved in the UNEP's plastic treaty or the EU's circular economy plans.
Large-scale use and export potential
India currently uses the highest number of liquor tax stamps globally. About 60% are plastic-based, while 40% are paper-based. The new biodegradable stamp, known as
BioSHEAL
, is now in the commercial pilot stage. It includes dual QR codes and anti-counterfeiting features that support both physical and digital tracking—what the industry refers to as 'phygital' labeling.
Phygital labels are gaining traction
States like Kerala are working on hybrid security labels. The Centre for Development of Imaging Technology (C-DIT) has created the THTT (Taggant, Hologram, Track and Trace) stamp. Meanwhile, Delhi and Uttar Pradesh had adopted thermal transfer labels but later revised their strategies due to counterfeiting issues.
The NRDC is working with excise departments, exporters, and industry partners to expand the use of the new stamp. It is also developing other green intellectual property for sectors such as agriculture and healthcare.
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