Small businesses squeezed as plastic prices rise and profits fall

2026-03-30 - 13:21

For grocers and shopkeepers, every plastic bag handed to a customer for “free” is a direct hit to their struggling businesses. While shoppers view these bags as a basic convenience, small-scale vendors in Thimphu are facing rising costs and a lack of effective plastic policy, forcing some to hike product prices. Tshering Choki, a grocer, says that as a business, bearing costs for plastics always results in losses rather than profits. “Customers always ask for plastic bags, even for one or two items. As we don’t charge anything for the plastic bag, we give them, and we have to bear the costs by ourselves,” she said. “Moreover, it is also a huge problem for the environment. Plastics go from here only to end up as waste. It would be better if people would carry their own bags while shopping.” Owners say that plastic prices were Nu 190-200 before the GST regime was implemented. Tshering added that she gets plastic bags from wholesalers who usually sell them per kilogram at a rate of Nu 240-250. This also includes regular sized single-use plastic bags and smaller plastic bags that are used to pack doma (betel nut). Smaller plastics are sold at a rate of Nu 220. However, prices vary with different wholesalers. “As a smaller shop, we aren’t charged GST while buying plastics, and we don’t know whether we are being charged GST but prices have risen since GST came in. It is an added burden to us,” said a pan shop owner. One of the cereal vendors Lhamo said, “For stores like us, which require plastic bags for nearly every product, we see more and more expenses going into plastics. Since items like rice have to be either sold in sacks or plastics, it is very difficult for us to get any profit.” “We never see any real profit since it goes into buying plastic bags every week. Weekly, we have to buy over 5 kgs of plastics, at no added cost for the plastics.” This is the same for all other stores and vendors as well. The cost of the plastic bags are usually borne by the sellers and owners themselves. Moreover, this also enables store owners to either raise prices or alter quantity (in the case of domas). Lhamo said that since they aren’t able to make any profit from their sales, it made them add Nu 10-20 more on some products to be able to earn something. Vendors in the Kaja Throm worry about another price hike for plastic bags. “We also hear that the prices of the plastic bags are going to increase by another Nu 50. This is going to make it more difficult for people like us,” she added. Lhamo suggested that the burden of providing plastic bags could be reduced if shoppers brought their own reusable bags. She also noted that recycling plastics and even sacks can help lower overall waste and reduce plastic consumption. A retail worker in Thimphu added that a uniform government policy on plastic bag use across stores would be helpful. Store owners say the availability of plastic bags is important for retaining customers, as shoppers are often reluctant to make purchases if they cannot conveniently carry their items. There is an urgent need for government intervention to implement a robust, sustainable, and effective plastic policy. Such a policy would benefit the environment while also easing the operational burden on small stores and businesses.