Paper industry asks govt to help domestic cos

Measures like putting in place a safeguard mechanism against rising cheap imports would help the Indian paper industry to grow at a much faster pace, industry body IPMA said today.
Indian Paper Manufacturers Association (IPMA) outgoing President Yogesh Agarwal also said the industry has the potential to contribute significantly to the 'Make in India' campaign.
It asked the "government to put in place safeguards against rising import of cheaply priced paper".
Under the India-ASEAN free trade agreement, import duties paper and paperboards have being progressively reduced and the basic customs duty has come down to nil which has led to a surge in imports, it added.

Shortage of raw material and higher costs are also impacting the profitability of domestic industry, it added.
"In the given measure of global competitiveness, the domestic paper industry is at a significant disadvantage since it has no access to captive plantation in India to manage raw material availability and cost, while global players have in-built advantage of conducive plantation policies and ability to procure wood at favourable cost," IPMA said in a statement.

Domestic consumption of paper in the country currently is 13.10 million tons per annum (TPA). Per capita consumption is around 11 kg, while the global average is 56 kg.

"By 2024-25, under the baseline scenario, domestic paper consumption is projected to rise to 23.50 million TPA," it said, adding about one million TPA of integrated pulp, paper and paperboards capacity is required to get created in India on an annual basis to meet the growing demand.
"However with cheap imports impacting the market, it is feared that most of the demand will be met by imports," it said.
The annual turnover of the industry in India is estimated to be Rs 50,000 crore. It provides direct employment to 0.5 million people and indirectly to around 1.5 million.