corrugated box industry in India has over 350 automatic corrugators and more than 10,000 semi-automatic units, mostly in the MSME sector
The corrugated box industry has urged the government to ban the exports of “Recycled Kraft Paper Pulp Rolls” that will help in availability of raw materials in the country and control the surge in prices.
The industry is reeling under the twin blows of sharp rise in raw material as well as disruptions in its supply, stated Mr. Sandeep Wadhwa, President of Indian Corrugated Case Manufacturers Association (ICCMA).
“The exports of Kraft paper from India to China have surged as China has banned import on waste paper from January 1, 2021. Exports from India are in the form of Recycled Kraft Paper Pulp Rolls. “This has created a huge shortage of raw material for the domestic corrugated industry,” Mr. Wadhwa further stated.
According to Mr. Wadhwa, there is a need for the government to step in and ban exports of “Recycled Kraft Paper Pulp Rolls” as the domestic corrugated industry that gives employment to over 6 lakh people, is on the verge of closure.
Mr. Harish Madan – Vice President of ICCMA stated that, “The demand gap and attractive pricing in China is diverting the output of Indian Kraft paper from the domestic market and driving up the domestic prices of finished paper and recycled fibre. Exports of recycled Kraft paper pulp rolls by Indian Kraft paper mills would touch about 2 million tonne this year, roughly 30 percent of total domestic kraft paper production in India.”
Mr. Madan added that this development, on the base of zero export prior to 2018, is game-changer in supply-side dynamics going forward.
In addition to the increase in the costs of Kraft paper, he said other conversion costs like man-power costs, starch and freight have also witnessed a huge increase by 60-70 percent over the past few years.
According to Mr. Madan, Chinas burgeoning demand for Kraft pulp rolls is pushing at least 20 percent Indian box makers on the brink of closure.
The corrugated box industry in India has over 350 automatic corrugators and more than 10,000 semi-automatic units, mostly in the MSME sector.
Mr. Wadhwa further stated that the corrugated box industrys healthy growth is vital not only to keep all manufactured goods supplied with sustainable packaging but also essential for furthering our Prime Minister Narendra Modis dream of Make in India.
“We, therefore, appeal to all box users, including large brand owners and other corporates, to grant fair price revisions to cover the increase in raw material and conversion costs and ensure the industry avoids imminent closure,” he added.