The Hindu Business Line : Paper industry pins hopes on new policy

Starved of raw material the paper manufacturing industry is pinning hopes on a likely policy on Multi-Stakeholder Partnership (MSP) prepared by the Union Ministry of Environment and Forest.

The MSP proposed to facilitate formation of associations with all the stakeholders –— sponsors (manufacturers or investors), local communities and the Forest Department.

“The policy, a draft policy of which is being discussed at higher echelons before presenting it to the Cabinet will address the major problem being faced by the paper industry in the country,” Mr Anil Kumar, President of Indian Pulp and Paper Technical Association, said.

Addressing a press conference here, he said the production and per capita consumption of paper was very low when compared to some major countries.

“We contribute just 7.5 million tonnes of paper as against a world production of 325 million tonnes,” he said. The per capita consumption per year was just 7 kg against the global average of 40 kg. In the case of developed nations such as the US and Canada, the per capita consumption was as high as 300 kg.

The industry is facing a host of problems, a major one being shortage of raw material, high cost of energy and capital expenditure.

It is estimated that 55 million hectares of wasteland and 15 million of agriculture hallow land is available in the country. If used effectively, this could benefit the industry and farmers.

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