The increase in price has come after a period of three years, the association said in a statement here.
"For manufacturing of corrugated box, 70 per cent of kraft paper is used. The procurement price of Kraft Paper has been increasing every year by 20 per cent and the labour cost has shot up by 50 per cent," Association's President Bala Vassudevan said.
According to him, the Association represents 1,000 small and medium units and the value of Tamil Nadu and Puducherry industry was around Rs 2,000 crore.