Newsprint export suffers due to absence of container service

The absence of container service between India and Pakistan through the Attari Integrated Check post (ICP) is affecting North India's only newsprint manufacturer - Khanna Paper Mills. Having exported about 500 tonnes of newsprint since May last year, The Amritsar-based manufacturer mentioned that there was huge potential in Pakistan for newsprint export but absence of container service and mechanised handling facilities is hampering exports as there has been instances where the product got damaged.

Citing security reasons, both the countries are yet to introduce huge container-handling facilities for road cargo, which is affecting trade between the two countries. At present, although cross-border movement of trucks between the two countries is allowed since 2007, it is restricted to warehouses only on either side of the ICP, where it is loaded and unloaded. For example, an Indian exporter will have to unload his truck at a warehouse near the border and after getting clearance from the concerned authorities, the importer again will load the consignment and can take it to his desired location.

Speaking to Business Standard, Khanna Paper Mills Director Suneet Kochhar said, "Pakistan doesn't produce newsprint domestically and the publishers are dependent on other countries. Overall, there is a demand of 5,000 metric tonnes of newsprint per month, so we see a huge potential. With an installed capacity of 300 Mt of newsprint a day, we are hopeful to meet their expectations, but the absence of container service is a stumbling block in exports. So, it is the infrastructure constraint which is affecting the newsprints exports. Both, the government's decision not to allow container service between the two nations and the lack of proper handling facilities is affecting our exports."

The company, for the first time in the history of both India and Pakistan, exported a consignment of newsprint to Pakistan via the Attari-Wagah land route in May last year after Islamabad had allowed its import from India. Initially, it exported the first consignment of 10 Mt of newsprint to Pakistan via road route for 'The Dawn' and the 'Jung Group' newspapers and overall, it exported 500 tonnes of newsprint.

Also, taking a step forward in this direction, Punjab's Deputy Chief Minister Sukhbir Singh Badal-led 45 members delegation comprising Cabinet ministers, eminent industrialists, traders and agri-experts to Pakistan in November last year, with the aim to create a congenial atmosphere for boosting economic ties between the two countries.