5000 Tonnes Stock lot paper is being Imported everyday in India: PMA

5000 Tonnes Stock lot paper is being Imported everyday in India: PMA

Muzaffarnagar (India), 02 April, 2016:  Northern India Paper Mills Association accepted that 2nd grade stock lot imported paper is de-railing the Indian Paper Industry. Exclusively Talking to The Pulp and Paper Times the President of Paper Manufacturers Association, Mr.Pankaj Aggarwal told that “every day, 5000 tonnes 2nd grade Stock lot paper is being imported to Indian market creating a major growth hurdle for Indian Paper industry. This stock lot paper is dumping into the Indian paper market. The Indian paper mills are facing difficulties to survive in this competitive market. Paper Traders are getting this imported paper in throw away price.” 

The association doesn’t have any objection of importing this 2nd grade paper as we are under WTO agreement. He insists that government should keep watch over this import of stock lot paper. Some malpractice are being done in custom which is not coming under screening.

On the question of five days shutdown of northern India paper mills in January; he said that “it was planned shutdown for the maintenance of plant and machinery to achieve the better quality of paper production and reduction in power consumption and labour bills. However normally we close our plant when we face any technical fault. He accepted that shortage of Raw material and continuous slowdown in demand of finished goods was also the one of the core reason behind the five day’s shut down.” 

Northern India Paper Mills Association has 100 paper mills manufacturing Kraft Paper in the region. According to the association there has been 25000 tonnes paper production loss due to the shutdown in five days. He said “The aim of shutdown was not inclined to get the attention of Government to our industry problem; obviously there is demand-supply gap for Paper Mills.”         

He told to TPPI that “India is going through severe economic slowdown and there is no healthy demand of goods in the market. Markets are empty of customers. Every Industry is facing this dilemma. Other Industry’s boom create demand for paper industry like Paper Box or carton which is accounted only 1% of total cost; has no demand. Electronic goods industry which use paper Box for the packaging of their electronic good like T.V. Fridge is also facing fall in consumer demand. Purchasing power of people is low.” He feels disappointed that after majorly contributing towards Prime Minister Narendra Modi’s ‘Swachh Bharat Abhiyaan’ Indian Paper Industry is still feeling neglected. Paper Mills are recycling the waste of society in to paper. Paper Industry is also financially supporting to farmers by using agro waste for paper production. “If we don’t do the recycling of waste, it will create the pollution for the society.” He demands for the exemption in Excise and Income tax for Paper Industry. Association wants an immediate ban on ‘shrink pack’ used in packaging of water and cold drink bottles. Earlier it was packed in carton boxes. Banning on shrink pack will create the demand of Paper.

On the expectation of Union Budget he said “Industry feel disappointed as Budget is having nothing for Paper Sector. Government doesn’t have any effective ‘Blue Print’ for development and population control.                      

He claimed that if demand of paper get boost then the shortage of raw material will not be the problem. Paper Mills are also importing the waste paper as raw material. According to the big paper mill there could be growth of 53% by 2020 in India but Pankaj Aggarwal does not feel contended on this matter. He said “Packaging paper will see normal growth in one to two years. Kraft and duplex are expected to grow 20% but it seems un-achievable. Specialty paper like tissue has good demand while white paper is in bad demand”    

Every day, 5000 tonnes 2nd grade Stock lot paper is being imported to Indian market creating a major growth hurdle for Indian Paper industry. This stock lot paper is dumping into the Indian paper market. The Indian paper mills are facing difficulties to survive in this competitive market. Paper Traders are getting this imported paper in throw away price. - Paper Manufacturers Association

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