In one aspect, the invention provides a substantially exfoliated nanocomposite material including starch and hydrophobically modified layered silicate clay. In another aspect, the invention provides packaging made from material including the substantially exfoliated nanocomposite material described above. The nanocomposite material has improved mechanical and rheological properties and reduced sensitivity to moisture in that the rates of moisture update and/or loss are reduced. In another aspect, the invention provides a process for preparing the substantially exfoliated nanocomposite material described above, including a step of mixing the starch in the form of an aqueous gel with the hydrophobic clay in a melt mixing device. In a further aspect, the invention provides a process for preparing the substantially exfoliated nanocomposite material, including the steps of mixing the starch with the hydrophobic clay to form a masterbatch (hereinafter “the masterbatch process”) and mixing the masterbatch with further starch.