Find the editor's views over current situation of Indian Paper Mills. Read now.
This may prove a 'Jubilant Time' for Paper Mills, If
This may prove a 'Jubilant Time' for Paper Mills, If...
The Union Budget of Indian Government and the Ban on import of waste paper by China are the two major factors that can improve the efficiency and profitability of Paper Mills in coming time. We need to keep our eyes on the international market as well as domestic for cheap raw material import and demand in paper consumption
Finance Minister Arun Jaitley has announced two major budget provisions for fiscal year 2018-19, that are reduction in corporate tax by 5 % for the companies having turn over up to Rs.250 Cr and pumping of Rs. 14 lakh Crore in rural economy. The saving of out of corporate taxes may be used in research and development or expansion. The reduction in corporate tax might be a handsome amount in the hand of paper mills and encourage to adopt new technologies or equipment that can reduce the production cost.
Paper production somehow indirectly relates to a big retail sector. The spending of 14 lakh crore in rural economy would raise the purchasing power of people, thus lead to more retail 'shopping'. The focus on rural support will help sustain India's long-term growth trajectory.
We need to see the creative side of the budget that we can transform into the commercial side. Building up of 2 corer new toilets in rural areas during the next fiscal year, may open up a new market of Toilet Paper, if we collectively chord the string of a campaign of 'Hygiene India and Save Water' in rural India. The habit of using Tissue, Napkin and Toilet paper in rural household is still in vain; we must not close our eyes or restrain from knocking the door of opportunities. Our association like IPPTA and IPMA should coordinate with government authorities, insisting people to use toilet paper with “Sochaalya” while granting funds to rural authorities.
Budgetary allocation for school education and literacy recorded a 7.86% increase goes up to Rs. 50,000 Cr. as the Govt. committed to treat education “without segmentation from pre-nursery to high school. The education sector will provide a significant demand of text paper.
In the other creative side, covering up of 10 Cr families under the “Health insurance scheme” will float with more paper work. Documentation details like Aadhaar, Pan Card, and other needed paper of each family will create demand in copier paper. Similarly, Rural Housing scheme will also come under the same bracket of documentation.
We must remain hopeful of not fearing from cheap import of paper or highly efficient overseas Paper mills.