A blend of gelatinized starch and a biodegradable hydroxy-functional polyester is disclosed. The polyester is preferably formed from diglycidylesters of dicarboxyl acids like cyclohexane dicarboxylic acid, adipic acid or decane decarboxylic acid and a dihydroxy compound like bisphenol A or hydroguinone. The composition may also contain polyvinylalcohol. Water-resistant biodegradable films are made from this composition.
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