Lift the ‘Lockdown’ on waste paper supply for the smooth functioning of FMCG, Pharmaceuticals and other packaging industry

Lift the ‘lockdown’ on waste paper supply for the smooth functioning of FMCG, Pharmaceuticals and other packaging industry

Issue e-passes to collect and transport RCP to paper mills

New Delhi |8th April 2020 | The Pulp and Paper Times:

After declaring the Paper Manufacturing under essential commodity services, Paper mills in India are still reluctant to operate amid disrupted waste paper supply chain. The movement of waste paper supply is completely banned by the state government due to the spreading of coronavirus.

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In the lockdown, the packaging industry is still functioning in order to maintain essential services like medicine and grocery products. In the speculation of the lockdown continuity, the packaging paper stocks are decreasing day by day at the corrugation industry, disrupted paper manufacturing might further worsen the situation.

Mr. Naresh Singhal, President, All India Waste Paper Dealer Association said, “Functioning of paper mills is necessary to further meet out the demand of packaging industry for supply of packaging material industries like FMCG, Pharmaceutical industry, and print media publication, etc. The Paper mills are in short supply of waste papers and currently not utilizing their optimum manufacturing capacity. We, waste paper suppliers, can cater to the demand of waste papers of paper mills; but in the current scenario we are not able to supply the waste paper due to lockdown.”

The entire world is reeling under the grip of COVID-19 and business across the world has been badly hit due to this deadly disease. At the local level, the import of recovered paper (RCP) has been badly hit during the last quarter which has resulted into high dependence of paper mills on the domestic RCP, but due to the current lockdown, the waste paper dealers are not able to supply the waste paper to cater to the demand for paper mills.

Imported waste paper reduced by approx 60% in the last 4th quarter of FY 2019-20. The implementation of inspection clause guidelines by the union government of India in January 2020, has also hampered the waste paper import.

Mr. Singhal further said, “It is our humble request that the waste paper should be included in the list of essential commodities to enable a smooth supply of paper to packaging industries which shall further cater the demand of packaging material to the above mentioned essential industries, In the Meanwhile, we request to Government to issue e-passes to all our members and their staff to collect and transport RCP to paper mills. We assure the government that all necessary precautions will be taken by the members like social distancing, sanitization, etc.”

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On the other hand, port congestion has become a major worry for secondary metal and paper recyclers as shipping companies have started demanding detention charges for blocking their containers at the ports. Since shipping companies have declared themselves operational, they are asking material scrap importers (metal and paper) to clear their consignments or pay penalty for engaging containers beyond the agreed transportation period.     

Web Title: Lift the Lockdown on waste paper supply for the smooth functioning of FMCG Pharmaceuticals and other packaging industry