Paper bags used for food packaging such as groceries can be used as wet waste if they become soiled or wet.
Soiled paper bags can also be added to composting systems being used on-site or off-site.
Learn more about –
Waste segregation – https://greensutra.in/waste-segregation-all-you-need-to-know/
Waste Classification – https://greensutra.in/waste-classification/