Indian Paper Manufacturers Association (IPMA) has raised concern over the imports of paper and paperboard, which surged to an all-time high, reaching 1.76 million tonnes during the April-December 2024-25 period, registering a 20 per cent rise in volume terms.
Quoting latest data released by the Commerce Department, IPMA said these imports are valued at ₹11,196 crore ($1.3 billion), marking the first time that paper and paperboard imports have crossed ₹10,000 crore within a nine-month period.
A significant contributor to this surge is the 36 per cent increase in imports from China and a 23 per cent increase from ASEAN in volume terms.
Despite India possessing sufficient capacity to produce almost all grades of paper, the steady rise in imports continues to put immense pressure on domestic manufacturers. “Capacity utilisation levels in the industry remain suboptimal, and industry margins are under severe strain. The continued influx of imports, despite adequate domestic supply capabilities, is deeply concerning,” said Pawan Agarwal, President IPMA.
Despite India being the fastest-growing paper market in the world, the domestic manufacturing sector is struggling since the rising demand is met by imports.
While the situation is highly concerning for domestic manufacturers of all grades of paper, it is especially critical for virgin fibre paperboard, one of the growth drivers for the industry. The surge in imports of virgin fibre paperboard has more than tripled since 2020-21. The landed price of these imports, especially from China and Indonesia, is significantly lower than the domestic production cost, and in many cases even lower than global pulp costs.
Continued surge in imports has significantly dented the commercial viability of Indian paper mills and will further discourage investment by domestic industry. This will lead to loss of employment opportunities, apart from depriving lakhs of farmers of their income from wood supply to paper mills, IPMA said.
The need of the hour is urgent policy interventions by the government to curb predatory imports of paper and paperboard by ensuring a level playing field for Indian manufacturers in the domestic market, IPMA said.
