In the year 2021, reasons for price increase of paper were ascribed to the rise in price of coal, paper mills’ main source of energy. Add to it the increase in price of imported waste paper, yet another reason. Hey, it does not stop there – an almost seven-fold increase in global container freight charges, rise in starch price further added up. Other factors contributing to this included, increase in strap and stitching costs, diesel price rise (which hiked all incoming and outgoing freight charges – and it is still staring hard at us even now, now that the elections are over) and higher local wastepaper prices.
Meanwhile, the ban on waste paper import into China had prompted chinese market to start procurement of clean and fresh paper from Indian paper mills, which has disrupted the Indian demand supply balance thus increasing prices for the domestic market. Lumber prices are up 24%, and paper mills import lumber pulp for manufacturing coated and uncoated paper. All this have contributed to an increase in prices of paper by about 30-35% in 2021.
Come 2022, From March 1, prices of coated and uncoated papers have been increased by ₹1,500 a tonne and the coated paper prices have seen even more increase. A paper industry watcher termed the situation as a “repeat of 1974”, while others said the user industry is passing through its “blackest” period in paper trade with “no one to listen, neither the Government nor the industry”. Paper industry imports coal and it’s import price has more than doubled per ton. As a paper mill owner shared with us on conditions of anonimity “I would say that the price increase is a compulsion due to the input prices. Have a look at the chemicals, energy prices – like imported coal prices have more than doubled and so, I feel that the prices may go up even further in the next coming months”.
Indian Agro & Recycled Paper Mills Association (IARPMA) has written to the commerce ministry alleging cartelisation by waste paper suppliers to increase prices. “IARPMA has asked the commerce ministry to intervene in the matter and crack down on illegal hoarding of waste paper stocking centres” said an IARPMA spokesperson.
The predicament is not limited to India alone, it is prevalent in Europe too as Intergraf – the trade association promoting and protecting the interests of the graphic industry at European level. recently shared “Rising paper prices and lack of availability is stymying the print industry’s pandemic bounce back and is likely to cause permanent damage according to Intergraf, which has issued a plea for the paper manufacturers to engage in transparent discussions”.
Availability is too going to be a problem for even those who are willing pay!