Rising Paper Imports Challenge Indian Industry

The Indian paper industry faces challenges as imports of paper and paperboard rose by 3.5% in the April-September period of 2024-25, with a notable increase from China. Domestic manufacturers struggle with low-capacity utilization and pressure from overseas competition. IPMA recommends higher import duties to aid local producers.

The Indian paper industry is grappling with a surge in imports, as shipments of paper and paperboard rose by 3.5% reaching 992,000 tonnes between April and September 2024-25, according to the Indian Paper Manufacturers Association (IPMA).

This rise is chiefly attributed to a 44% increase in imports from China, despite sufficient production capacities within India, the IPMA reported. The previous fiscal year saw a 34% surge in imports, reaching 19.3 lakh tonnes due to higher inflows from ASEAN countries.

IPMA President Pawan Agarwal expressed concern for domestic manufacturers, particularly those dealing with virgin fibre paperboard, citing a tripling of imports since 2020-21. He stressed that significant capital investments by local industries are undermined by these imports, prompting calls for increased customs duties at recent pre-budget meetings.

(With inputs from agencies.)