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Dharini Nagarajan

Cos cite rising inputs costs

New Delhi , April 17

Come June, consumers might have to dish out more for paper products as most paper majors are contemplating yet another round of price increase.

"We might increase prices in the month of June," an industry official pointed out.

Companies cite rising input costs as the main reason behind the impending price revisions.

"There is a tremendous pressure due to higher raw material and oil prices in the last few months. However, with the excise duty waiver that the industry received in the Union Budget, we have been able to maintain the prices. The duty waiver compensates the rise in costs, else we would have raised prices by now," Mr Rajeev R. Vederah, Joint Managing Director of Ballarpur Industries Ltd, told Business Line.

Raw material costs up

Mr M.L. Pachisia, Managing Director of Orient Paper and Industries Ltd, said: "Cost of raw materials have risen by almost 15 to 20 per cent since January and this is a major cause for worry." However, the company would wait a "little longer" before it decides to raise prices.

Mr Jaideep Chitlangia, President of the Indian Agro and Recycled Paper Mills Association, pointed out that companies so far had been able to absorb the cost-push effects, but might not be able to do so in the long run. The past year had witnessed intermittent price rises in the paper industry.

In an attempt to keep up with rising input costs, paper majors had last year revised prices three times to keep the business running.

The trend seems to continue this year with Ballarpur Industries already having increased prices in January this year by almost 2.5 per cent.

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