Paper imports jump 47% in FY23, China main beneficiary says IPMA

Chennai: India’s paper and paperboard imports have jumped just over 14% in volume terms and nearly 47% in value terms in the financial year 2022-23. According to the latest data issued by the Directorate General of Commercial Intelligence & Statistics (DGCI&S), total imports in FY23 at ₹11,513 crore was up from 7,839 crore in FY22 and nearly double the 6,140 crore clocked in FY21. More importantly, imports from China have increased a stupendous 112%, while imports from ASEAN countries went up by 97% during FY23.While the growth in imports have been across all grades of paper, the highest jump has been in the import of uncoated writing & printing paper at 102%, followed by coated paper and paperboard at 51%, and tissue at 41%. The top import sources of uncoated writing & printing paper are Indonesia, Singapore and China while that of coated paper and paperboard are China, Japan and South Korea.According to Pawan Agarwal, president, Indian Paper Manufacturers Association (IPMA), imports of paper and paperboard into India have been increasing at a fast pace in the last three years despite adequate domestic production capacity. While the domestic industry is grappling with the issue of producing paper and paperboard at competitive costs in view of rising raw material and energy prices, substantial quantities of paper and paperboard are imported into the country at significantly lower costs benefitting from nil import duty from ASEAN, South Korea and Japan under the respective free trade agreements, and preferential import duty from China under the Asia Pacific Trade Agreement (APTA). “Taking advantage of the nil / low import duty rates in India, these countries find India an attractive outlet for diverting their excess inventory,” said Agarwal adding that apart from the overall negative impact of duty-free imports on the domestic paper industry, it is making most small and medium paper mills in India commercially unviable, and also jeopardising the livelihoods of thousands of farmers engaged in agro / farm forestry and supplying wood to paper mills.Rohit Pandit, secretary general, IPMA, added that in order to provide a level playing field to the domestic industry, paper and paperboard should be kept in the exclusion list, with no preferential treatment in terms of import tariff, while urgently reviewing the existing FTAs and formulating new FTAs. “Further, suitable safeguard, anti-dumping and countervailing duties on imports of various grades of paper should be imposed,” he said.
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