Paper imports hit a high of 19.3 lakh tonne in FY24; industry worried

CHENNAI: Paper imports reached 19.3 lakh tonne in FY24, a rise of 34% over 14.3 lakh tonne imported in the previous year.

The surge of 34% comes on top of a 25% jump in paper imports in FY23. That’s a three-year CAGR (compound annual growth rate) of 21% which saw imports go up from 11.45 lakh tonne in 2021-22 with China’s share going from 1.46 lakh tonne in 2021-22 to 4.11 lakh tonne in 2023-24.

ASEAN has come to account for the largest chunk in the paper import pie in the country accounting for 27% share. Paper imports from ASEAN, which enter the country at zero import duty under the ASEAN-India free trade agreement, doubled to just over five lakh tonne during the year from 2.7 lakh tonne in FY23.

In value terms too, paper imports have doubled in the last three years. From Rs 6,140 crore in FY21, paper imports reached Rs 13,248 crore in FY24, the highest ever level, with a 3-year CAGR of 29% as per data released by DGCI&S.

Consequently, the Indian Paper Manufacturers Association (IPMA) has expressed concern at the consistently high levels of imports of paper and paperboard in the country hurting the interests of domestic industry. Despite India's sufficient domestic capacity to produce nearly all grades of paper, the influx of indiscriminate imports is undermining the commercial viability of many paper mills across the country, said Pawan Agarwal, president, IPMA.

Government data reveal that out of over 900 paper mills in India, only 553 are currently operational, a clear indication of the adverse impact of these imports, he added.

Imports of major paper grades, including uncoated writing & printing paper, coated paper and paperboard, are rising fast.

“This surge comes despite substantial investments by the domestic industry in recent years to upgrade technology, improve product quality, and enhance agro / farm forestry practices,” said a statement by the IPMA.

India’s past trade agreements, such as the ASEAN and Korean FTAs, along with the Asia Pacific Trade Agreement (APTA) with China and other countries, have significantly reduced import duties on paper. Under APTA, the basic customs duty has been slashed from 10% to 7% on most paper grades, offering a 30% margin of preference.

“This has made India an attractive destination for excess paper inventories from countries benefiting from substantial subsidies and incentives,” said the IPMA statement.


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