Corrugated box makers demand higher prices

inting blocks 30 2 0.67 Strapping roll/ packaging4010.44 Punching dies3010.33 Fuel801713.33 Power4062.22 Others40112.22 Total increase 10051.00  The strike is against the refusal of the consumer industries to pay a higher price over the last four years.  The Rs 10,000-crore corrugated box industry, primarily operating in the small- scale sector, is reeling under tremendous margin pressure due to rising input cost and the industry's failure to raise prices. The situation has opened the door for substitutes, including plywood boxes.  The corrugated packaging industry has been adequately meeting the packaging requirements of the country by successfully substituting wooden and plywood boxes, thereby contributing to environmental protection and ecological balance.  But the current crisis may give rise to increased use of alternative packaging materials, which may not be eco-friendly and against the National Policy of Conservation of Forest Resources, an industry source cautioned.  "We have been supplying boxes at prices prevailing four years ago as any effort to raise prices lead to business moving away to competitors. We have now decided to convene a meeting of the members and non-members to educate them about not supplying boxes to consumer industries at old prices," said an official with Western India Corrugated Box Manufacturers' Association (WICMA), a body affiliated to FCBMA.  The margin for the packaging industry has shrunken almost to "nil" because of the price rise in almost all raw materials, mainly kraft paper which comes to about 70 per cent of the total input cost, said the official.  Domestic paper mills have effected a series of price hikes. In April, they raised prices by Rs 2 per kg, on June 14 by Rs 1.50 and are planning a further increase of Rs 1.50 soon. Simultaneously, the conversion cost has also gone up heavily.  It is impossible for any manufacturer to bear such increase in conversion cost and kraft paper prices. Further, these increases have not been reimbursed by the end-users of corrugated boxes.  "It is high time that all the member units request their clients to agree to adequate increase in the prices of corrugated boxes. If this is not done on a war-footing, I am afraid sickness would spread beyond recovery," said an industry source.