Box and recycled paper manufacturers hit by high raw material prices

Corrugated field manufacturers have urged their prospects to extend sourcing prices, as these items are reeling beneath a pointy enhance in prices and disruptions within the provide of raw supplies.

The Indian Corrugated Case Manufacturers’ Association (ICCMA) has mentioned in a press launch that the entire value enhance for field makers has crossed 70% cumulatively, on account of paper alone. “The Industry is bleeding on account of unprecedented hikes in the cost of its main raw material – kraft Paper. Kraft Paper Mills cite the rising prices of imported and domestic waste paper on the supply side post Covid-19 pandemic lockdowns and international logistics disruptions for the reduced availability,” mentioned ICCMA president Sandeep Wadhwa.

According to the ICCMA, the demand hole and engaging pricing in China is diverting the output of Indian kraft paper from the home market and driving up the prices of completed paper and recycled fibre. Exports of recycled kraft paper pulp rolls by Indian kraft paper mills is predicted to the touch two million tonnes this 12 months, which is roughly 20% of complete home kraft paper manufacturing in India.

“The corrugated box industry in the country, with over 350 automatic corrugators and more than 10,000 semi-automatic units, mostly in MSME sector, is facing immense stress on account of these unprecedented cost increases,” the affiliation mentioned interesting to all field customers, together with massive model house owners and different corporates, to go in for “fair price revisions” to cowl the rise in raw material and conversion prices.

Meanwhile, the Indian Agro & Recycled Paper Mills Association (IARPMA), has written to the Union Ministry of Commerce alleging there may be an acute shortage of waste paper which has been artificially created by “certain vested interests”. The recycled fibre (waste paper) primarily based paper mills, which account for nearly 70% of paper and paperboard manufacturing within the nation, say the important thing raw material prices have doubled during the last six months.

According to the IARPMA, from a pre-COVID-19 value vary of ₹10-₹13 per kg, waste paper prices have surged to ₹22-₹24 a kg impacting the trade adversely. Kraft waste paper prices have additionally reached ₹22 per kg as towards ₹10 throughout pre-COVID-19 interval. “Certain waste paper suppliers are controlling the price and availability of waste paper and as a result, there is no option for paper mills but to cut their paper production as per the raw material availability and stock inventory”, mentioned Pramod Agarwal, president of IARPMA.

The affiliation has appealed to the federal government to intervene and crack down on unlawful hoarding.