Printed Products to cost more as there has been a sharp rise in the prices of various raw materials.
Offset Printers Association (OPA) has condemned the sharp rise in the prices of raw material, especially paper, plates and chemical, etc. The unprecedented escalation of price of paper by the paper mills is the major hurdle while consumables industries are not willing to pass on the cost making their business unviable, the association expressed concern during its recent ‘Churning Meeting’ held at Heritage Hotel Raj Mahal, Nalagarh, Himachal Pradesh.
OPA observed that frequent increase in prices of kraft paper and other raw material is a matter of deep concern for the printing industry. Speaking on the occasion, Mr. Gagandeep Singh, Vice President OPA said, “The prices of all types of paper in India have increased since March 1, upsetting the user industry.”
Mr. Rohan Oberai, PRO of OPA added, “The corrugated box manufacturers are the worst affected in view of frequent price hikes. From March 1, prices of coated and uncoated papers have been increased by $20 (Rs.1,456) a tonne. The user industry has been told that prices would be raised further by $20 each at least four more times this month. The printing and packaging industry, mainly the corrugated manufacturers, is worried as the economy is just recovering from the pandemic impact.”
Prof. Kamal Chopra, General Secretary, expressing his concern on the ongoing situation, said, “The demand for paper except office paper has already reached the pre-COVID level. The demand was low in the office space segment but it improved in this quarter and it reached almost the pre-COVID level in September last.”
He was optimistic about future growth considering the gradual opening of economy and lifting of restrictions is getting back the demand. He continues, “The packaging sector has grown by 10-15% and the growth will continue. Apart from Covid related challenges, the printing industry is facing the twin blow of continuous price hikes in paper, plates, chemicals, ink and other raw material and substantial rise in input cost.” As a result of this, cost of printed products are bound to increase at least by 18 to 25 per cent by next couple of days.
OPA noted that the prices of raw material have more than doubled in just 6 months. Providing daily update on prices to its members, the association is motivating them to take advantage of bulk procurement of material at competitive prices. Other factors responsible for this critical situation include the GST increase from 12% to 18%, inflation and various international factors like increasing crude oil prices. With many in the industry having already closed shop, many more are at the brim of closing down. Printing and packaging industry is one of the worst hit industries from the cost of raw material and paper.
