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Badal Sanyal

Kolkata , June 30

DOMESTIC newsprint manufacturers feel that the current market situation is conducive for them to revise all types of newsprint prices during the July-September quarter.

Although the quantum of increase has not yet been decided by individual manufacturers, industry sources indicate that this will be finalised at the next executive committee of the Indian Newsprint Manufacturers' Association (INMA), scheduled to be held early next month.

Domestic manufacturers last revised prices three months ago in conformity with the price trend in the international market. As the market trend has remained buoyant and the landed cost of imported newsprint has considerably increased due to higher shipping freight rates, they have veered towards the idea of imposing another revision during the second quarter of the current fiscal.

The sources indicate that the revision is expected between Rs 500 and Rs 1,000 a tonne, subject to the tacit approval by INMA. They argue that the further price revision may not only be absorbed by the market, but average prices of domestic newsprint will also remain lower than the imported varieties.

They say that the tight demand and supply situation of newsprint would continue till the capacity addition programmes initiated by some manufacturers are complete in two to three years. Assuming a 10 per cent growth rate in demand, they have projected the country's newsprint requirement for the year 2005-06 to touch 16.5 lakh tonnes against previous year's demand of about 15 lakh tonnes.

Domestic manufacturers may be able to supply a maximum of 8.5 lakh tonnes, leaving consumers to depend on the imported newsprint to the extent of about eight lakh tonnes.

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