Absence of container service affects newsprint exports to Pak

Amritsar-based Khanna Paper Mills sees huge potential in newsprint export to neigbouring country through Attari Integrated Check Post

The absence of container service between India and Pakistan through 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 is huge potential in Pakistan for Newsprint export.

Absence of container service and mechanized handling facilities is hampering exports as there has been instances where 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 truck between the two countries is allowed since 2007, but 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 in Pakistan 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 produces newsprint domestically and the publishers are dependent on other countries. Overall, there is demand of 5,000 metric tonnes of newsprint per month, so we see huge potential. With installed capacity of 300 MT of newsprint per day and are the only manufacturer in Northern region, so we are hopeful to meet their expectations, but absence of service is 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 lack of proper handling facilities is not only affecting our exports but others also.”

It is worth mentioning that in March last year, Pakistan switched over to negative list regime with India for trade allowed import of 137 items through Attari land route which includes Newsprint,sheets etc.

The company, for the first time in the History of India and Pakistan, exported a consignment of Newsprint to Pakistan via Attari-Wagah land route in May last year after Islamabad allowed its import from India in March last year. Initially, it exported first consignment of 10 MT of newsprint to Pakistan via Road route for ‘The Dawn’ and ‘Jung Group’ newspapers and overall it exported 500 tonnes of Newsprint.

Also, taking a step forward in this direction, The Punjab 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 a sole aim to create congenial atmosphere for boosting economic ties between the two most important countries of South Asia and at the same time also benefiting Punjab.