The present invention discloses a novel film coating composition of polyvinyl alcohol (PVA) in combination with sugar, and a plasticizer or a combination of plasticizers resulting in a composition which is non tacky and easily dispersible in water at high solids content. The coating compositions help in achieving higher spray rates, disperse in less solvent i.e water, and helps in reduction of coating process time. Further the resultant film which when coated onto substrates exhibits good adhesion and provides smooth surface to substrates.