As margins pinch, paper industry seeks anti-dumping duty on imports

V. Rishi Kumar | | Updated on: Jan 24, 2018

Companies already under pressure amid rising input costs

The country’s Rs 40,000-crore pulp and paper industry, currently faced with margins pressure and growing input costs, is now having to tackle the problem of dumping of cheaper imported paper from China and Indonesia, according to paper sector players.

“This is causing big concern for the domestic manufacturers, who are unable to meet the lower costs offered for the imported paper. Therefore, we have requested the Centre to impose anti-dumping duty and hope a favourable decision is taken soon,” Sanjay K Singh, President Indian Pulp and Paper Technical Association (IPPTA) and Chief Executive of ITC Paper Division, said.

Addressing a press conference here he said, “Such a duty would bring these imported paper products on a par with domestic manufactured paper and sort out the anomaly.”

“In a county which produces about 12 million tonnes of paper per annum, the per capita consumption is abysmally low at 10 kg per person as against the world average of 55 kg per person. However, this is poised to see big growth with domestic capacity heading towards 20 MT,” Neehar Aggarwal, Chief Operating Officer of Bilt Paper B.V. said.

SUSTAINABILITY

“There is a wrong notion and a negative image about the paper industry that we cut trees. But the fact is paper industry plants trees. For every tree we cut, we plant four more trees,” Sanjay Singh said.

“While the raw material costs are spiralling up and input costs going up, it is causing concern as they impact our margins. Added to this, the cheaper imports have added to our woes,” he said.

MBS Nair of Emami Paper, “The percentage of waste paper to produce paper has gone up from mere 20 per cent to 35 per cent over the last few years and we expect this trend to continue on a larger base.”

The IPPTA is hosting a two-day (March 12-13) meet here on Sustainability of Paper Industry in India to take stock of the sector concerns and the way forward.

Published on March 11, 2015
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