Covid-19: “We are still selling Kraft paper at Pre-lockdown price - GPMA

Covid19: “We are still selling Kraft paper at Pre-lockdown price”: GPMA

Gujarat | 29th April 2020 | The Pulp and Paper Times:

Nationwide Lockdown disrupted the supply chain of the paper mills. The imported waste paper at the ports is still waiting for customs clearances. Amid the fear of raw material (waste paper) crisis, Box Manufacturers across the nation are scared of the price increase of kraft paper. Various Boxes making associations have alleged the paper mills for an artificial price hike.

Taking the concern of The Pulp and Paper Times’ news on Kraft paper price hike, Mr. Sunil Aggarwal, President of Gujarat Paper Mills Association (GPMA) says on 27th April, “Even after completing the Lockdown-I on 14th April, Our association’s paper mills are still selling kraft paper on pre-lockdown prices till today,”

“GPMA has around 100 above paper mills as its member and paper mills from Maharashtra region also support our association in good faith,” Mr. Aggarwal said.

Mr. Aggarwal clarifies that post lockdown, price of Kraft paper will totally depend on various factors like waste paper procurement at the local level, transportation and movement of imported recovered paper to India.   

“We completely disagree with 20 percent steep price asked by kraft paper mills as mentioned by Box making association, we want to just mention that There has been zero percent hike in kraft paper price till today, yes, post lockdown the ‘fear’ of price increase can’t be restricted to upto 20 percent, it could be anything from 0 to 100 percent totally depending on raw material and other important situations,”

However, GPMA had reduced the Kraft Paper price up to 30% during FY19 -20 due to the drop in waste paper price benefited to box manufacturers.

On the other hand Mr. Kirit Modi, President Emeritus, Indian Corrugated Case Manufacturers Association (ICCMA) said, “The price increase asked by mills all across India is massive, almost 20%. The Box Industry has no option but to seek matching price increases from their clients & end-users,”

On 8th April, Mr. V.K. Dewan, President, Federation of Corrugated Box Manufacturers of India (FCBM) stated that “The complete restoration of import’s pipeline of waste paper to manufacture the higher grade of paper (above 18 BF) will take 2 to 3 months. And, there would have been lots of bulk orders in the hand of corrugation units those working for FMCG companies after the lockdown, these demand cycle will create an environment of artificial price increase up to 20 percent by Kraft paper mills.”  

Small paper mills on 27th April said that over 35,000 containers with imported waste paper are held up at various inland container depots and container freight stations despite the government''s directive to waive port logistics charges.

“Currently we are liquidating our old waste paper stock to manufacture the paper and selling it at pre-lockdown price matching with our input cost. Now, almost the whole world under lockdown situation and consumption of paper is very low creating the crisis for a waste paper generation. We can’t predict the situation now, on which price waste paper will come to us? It’s totally under the assumption,” Mr. Sunil Agarwal said.  

"The non-availability of raw material i.e. the waste paper is adding to the miseries of small-scale paper manufacturers who are required to comply with all the statutory liabilities, payment of salaries besides bearing other heavy expenses like power bills, sanitization of plant and workers and putting up facilities for workers’ stay in the mill premises," said IARPMA President Pramod Aggarwal adding that "mills should not be unnecessarily hassled".

“The prices of finish Kraft paper used for the packaging for essential commodities and pharmaceutical companies has gone higher by approx 22% say Rs 4 to 5 per kg and following the same pattern Kraft paper waste have also already been revised by 22% say by Rs 3 to 3.50 per kg and rates for both are in acceleration mode,” Mr. Naresh Singhal, President, All India Waste Paper Dealer Association said

“Now to control the price hike in paper industry, the government should make arrangements to promote the supply of domestic waste paper (paper recovered from domestic waste) by allowing kabariwala and small unregistered traders of waste paper from Green Zones of the Country,” Mr. Singhal says.

Web Title: Covid 19We are still selling Kraft paper at Pre lockdown price  GPMA