Corrugated box makers hit by input price and supply issues

Corrugated box makers face stiff competition from plastics packaging

An estimated 12,000 corrugated box manufacturers face the threat of closure due to a sharp increase in raw material prices and their inability to pass this on to consumers. 

Kraft paper, 70 per cent of the input, has risen by 12 per cent or Rs 3 a kg over a fortnight. Its manufacturers have announced a further price hike by eight per cent or Rs 2 a kg in March.

“The corrugated box industry is staring at huge losses on this count. And, has failed to pass on this raw material price hike to consumers i.e. large corporates who book in advance