Import of paper and paperboard (excluding newsprint) has gone up by 45 per cent in the first quarter of this fiscal to touch an all- time high of 4.7 lakh tonnes, as per the latest data released by the Directorate General of Commercial Intelligence and Statistics.

Duty-free paper import from Asean countries has more than doubled from 42,600 tonnes to 95,200 tonnes during the period.

The Indian Paper Manufacturers Association, the lobbying body of the industry, has said the indiscriminate import of paper is hurting the interests of domestic industry, which does not enjoy a level playing field as the production cost of exporting countries are a fraction of cost in India. In a communication to the Ministry of Commerce & Industry, IPMA said in the last six years paper imports have risen at a compounded annual growth rate of 16 per cent in value terms to ₹8,237 crore in the last fiscal from ₹3,411 crore logged in 2010-11. In volume terms, it has touched 1.42 million tonnes from 0.54 million tonnes in the same period.

Saurabh Bangur, President, IPMA, said paper is being imported at a cost which in many cases is less than the input cost in India.

However, he said most of the growth in demand is being met by imported paper, while domestic capacities are lying underutilised.

Inadequate availability of raw material domestically is a major constraint for the paper industry. Cost of domestic wood in India is higher by almost $30-40 per tonne as compared to other Asian countries. Due to this single factor, cost of paper production in India is higher by $100 a tonne, said IPMA.

Increased import of paper and paperboard is severely impacting the economic viability of many paper mills in India, apart from revenue loss to the government.

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