The corrugated box industry faces a crisis as raw material prices have risen 30-35%, threatening to make the company unsustainable, an industry official said.
In India, there are around 350 automatic corrugators and over 10,000 semi-automatic units across the country and the segment generates direct employment for around 4,000,000 people.
The corrugated board industry has said that the unprecedented escalation in the price of kraft paper by paper mills is the main obstacle, while consuming industries are unwilling to pass on costs making their business unsustainable.
Prices of domestic and imported waste paper have increased from Rs 4,500 to Rs 5,000 per tonne over the past two months.
China has proposed a ban on imports of waste paper from January 2021, and as a result, Chinese paper mills store the waste paper available in overseas markets.
China and India import their waste paper mainly from the United States and Europe for the manufacture of kraft paper.
However, the (elected) president of the Federation of Corrugated Box Manufacturers of India, Milan Kumar Dey, questioned the role of paper mills in raising prices stronger than disruptions in the supply of paper. raw materials.
“Although factories claimed there was a severe shortage of pulp due to poor collection of waste paper in Europe and the United States due to Covid resulting in increased cost of waste paper,” he said. -he declares.
However, the factories do not provide medium-term import data questioning their claim. While the price of household waste only increased by 2-3 Rs per kg. It’s a real question as to why Kraft paper prices have gone up so much and so quickly, Dey said.