The Hindu Business Line : Paper prices set to rise soon

This time, the hike is between Rs 500 and Rs 750 per tonne and the two companies have cited a steep hike in input costs and rising demand for paper as the major reasons.

BILT has decided to increase the prices of coated paper by Rs 600 per tonne and uncoated paper by Rs 750 per tonne from July 1. J.K. Paper has, meanwhile, announced a Rs 500-per-tonne hike also effective from July 1.

When contacted, the Chief Financial Officer of BILT, Mr B. Hariharan, told Business Line, "We have decided to increase prices keeping in mind the demand-supply situation. Right now, demand far outpaces supply and the market is in a position to absorb a price increase."

He said BILT first increased prices in April and then again in May this year.

"After the latest round of price increase, paper prices would have gone up by 6-7 per cent since April," he added.

The Chief Financial Officer of J.K. Paper, Mr Satish Mandana, said that last year was "pretty bad" for the industry since prices of almost all raw materials such as caustic soda, coal, among others, shot up and the industry was unable to increase prices to meet this input cost hike.

"We first increased prices by Rs 600-800 in April and this was absorbed well by the market.

"This, coupled with the fact that the demand for photocopier paper — our main product — is growing at over 15 per cent encouraged us to increase the prices again," he said.

Mr Mandana said that J.K. Paper was already operating at 115-118 per cent capacity utilisation and the demand for paper is expected to remain firm.

And in the near future, there could well be another round of price hike in the paper industry.

Mr Hariharan said that coated paper prices could rise yet again if the demand continues to outpace supply.

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