Scottish Conservatives have said they would redirect unspent money from the Circular Economy Investment Fund (CIEF) to support food producers and rural communities.
The party is the second largest in the country’s parliament after the Scottish National Party (SNP).
According to the Conservatives, the CIEF has allocated £5m to small and medium-sized businesses despite there being £18m available.
The party said a Food Producers Fund would focus on on-site anaerobic digestion, agricultural infrastructure and micro-plastics recycling, while local waste hubs would provide an alternative for farmers banned from burning plastic when this is banned next month.
Shadow environment secretary Maurice Golden said: “The SNP is on course to miss key recycling targets and has spectacularly failed to substantially increase the amount of waste Scotland is recycling.
“Indeed, the SNP ban on plastic incineration will leave farmers, particularly those in rural communities, with very few viable options for recycling.”