Box and recycled paper manufacturers hit by high raw material prices

Corrugated box manufacturers have urged their customers to increase the sourcing prices, as these units are rapidly increasing prices and disruptions in the supply of raw materials.

The Indian Corrugated Case Manufacturers Association (ICCMA) said in a press release that the total cost increase of box manufacturers for the box alone has exceeded 70%. “The industry is bleeding due to unprecedented increase in the cost of its main raw material – kraft paper. ICCMA President Sandeep Wadhwa said that Kraft Paper Mills supply side post Kovid-19 cites the rising prices of imported and domestic waste paper on international logistic disruptions for epidemic lockdown and low availability.

According to ICCMA, the demand gap and attractive pricing in China are reducing the production of Indian kraft paper from the domestic market and raising the prices of finished paper and recycled fiber. Export of recycled kraft paper pulp rolls by Indian kraft paper mills is expected to touch two million tonnes this year, which is about 20% of the total domestic kraft paper production in India.

The association appealed to all box users, stating, “The corrugated box industry in the country, with more than 350 automated corridors and more than 10,000 semi-automatic units, mostly in the MSME sector, is facing extreme stress due to these unprecedented cost increases.” Used to be.” Including big brand owners and other corporates to go for “fair price revisions” to cover the increase in raw materials and conversion costs.

Meanwhile, the Indian Agricultural and Recycled Paper Mills Association (IARPMA) has written a letter to the Union Ministry of Commerce alleging that there is an acute shortage of waste paper, artificially created by “some vested interests”. Recycled fiber (waste paper) -based paper mills, which account for about 70% of paper and paperboard production in the country, say raw material prices have doubled in the last six months.

According to the IARPMA, from the pre-Kovid-19 price range of the 10-per 13 per kg, waste paper prices have adversely affected the industry at -22-a 24 per kg. During the pre-COVID-19 period, the prices of craft waste paper have also gone up to ₹ 22 per kilogram as compared to pre-10. IARMAMA President Pramod Aggarwal said, “Some waste paper suppliers are controlling the price and availability of waste paper and as a result there is no substitute for paper mills, but cut their paper production according to the availability and stock list of raw materials Do. ” .

The association has appealed to the government to intervene and crack down on illegal hoardings.