Paper imports triple in last eight years to Rs 9134 crore in 2018-19

CHENNAI: Increasing paper imports has become a cause of concern for the paper industry, which is seeking import restrictions as many paper factories seeking import were operating at just 85% of their rated capacities.
In a communication to the ministry of commerce & industry, the Indian Paper Manufacturers Association (IPMA) has asked for implementing a Paper Import Monitoring System for all grades of paper and paperboard to curb the indiscriminate import of paper in the country.In the last eight years, imports have risen at a CAGR of 13.10% in value terms (from Rs 3,411 crore in 2010-11 to Rs 9,134 crore in 2018-19), and 13.54% in volume terms (from 0.54 million tonne in 2010-11 to 1.48 million tonne in 2018-19), import data from Directorate General of Commercial Intelligence & Statistics (DGCI&S), showed.
Paper & paperboard imports in the country have risen by 16% in volume terms in April-December 2019-20 against the corresponding period of 2018-19, while import of paper from ASEAN region have risen at a faster rate of 37% during the nine-month period. ASEAN has come to account for the largest chunk of paper imports in the country.
“In view of excess capacities in some of the large paper manufacturing countries in the world, paper and paperboard is being diverted to India which is arguably the fastest growing paper market in the world. Growth in e-commerce, wider spread of education and increase in quality of life is leading to an increase in consumption of paper and paperboard in the country. However, the demand is being increasingly met by imports,” said A S Mehta, president IPMA.
Currently India’s paper industry is operating at around 85% of the capacity, which is low for a high capital intensive and continuous process industry like paper. Except a few companies, most of the sector is stressed. According to Central Pulp & Paper Research Institute (CPPRI) data, out of 861 paper mills in the country, only 497 are currently operational. This shows the stress in the industry. (CPPRI is a national level institute under the administrative control of the ministry of commerce and industry to promote R&D in the field of pulp & paper.)