Covid-19: Converters have ‘ample’ stock of paper stationery products for next Academic session

Covid-19: Converters have ‘ample’ stock of paper stationery products for next Academic session

New Delhi | 19th April 2020 | The Pulp and Paper Times:

Amid the nationwide lockdown, Paper supply has been badly disrupted across India. The next academic session is just a couple of months away. There is a worry for stationery products availability like notebook, notepad etc, will these products be available to students or not? Or at what price? “After completing the last season, convertors had started the manufacturing since August 2019 for the next season, so there has been ample stock of finished products (notebooks, etc) with most of the converters for at least one or two months, says Dharmendra Bhagta, Secretary, Federation of Maharashtra Stationery Manufacturers & Traders Association

“Usually, Converters start their season from August and they start booking the orders from schools and corporate in February. Once the lockdown lift, supply will gradually become smooth,”

“There could be a minor hike in stationery price up to 2 to 5 percent that depends. This price upsurge would only be motivated due to disrupted supply chain”, Mr. Bhagta concluded.

“There won’t be fresh buying of paper from paper mills after the lockdown; all big converters have already stocked the paper in January and February months. Presently, Notebook manufactures are waiting to dispose off their finished good material once the lockdown ends. The priority is to meet the demand by manufacturing more notebooks in the fastest ways; high-speed machines have changed the traditional ways of notebook making. The only crunch of labour could be faced by the convertors in the month of ‘Ramzan’, when most of the Muslim workers remain on leave to celebrate the festival,” Mr. Mukesh Shah said, President of Exercise Book Manufacturers Welfare Association, Gujarat.       

“Entire converting units for exercise notebooks have been shut down, and if lockdown removes on 3rd may, it will take 10 days to restore the notebooks manufacturing. Converters are packed with their raw material (paper) stocks. The government should also consider stationery products under essential commodity, and allowing us to open our units. When the schools session will resumes on 1st of July, converters with finished goods stock may artificially increase the price of notebooks”, said Mr. Naveen Khandelawal, a notebook manufactures in Beawar, consuming 5000 tonnes of paper in a year.   

Mr. Shah explains that “After March, paper demand starts diminishing because winding up of Government tenders. After the Diwali festival, from November onwards, Government starts the tenders process for purchasing of stationery products till the end of March”

Notebook manufacturing consumes various grades of writing and printing paper ranging between INR 40 and 70 per KG.

“Our whole year stock gets consumed in notebook manufacturing during March and April. We plan and maintain our stock for 8 months to tap the ‘season’ in four months (January to April). We are in heavy loss due to lockdown” Mr. Sanjay Gupta, Director of Jindal Sales Corporation, manufacturer of Stationery, Notes books and office books.

Mr. Naveen said, “Most of the converters’ payment has been stopped due to lockdown since March leading them to funds liquidity crisis. They can’t buy the raw material from the dealers or paper mills,”

A paper converter usually starts stocking the paper for every year’s academic session from January or February. In March month, corporate buying and government tenders for stationery purchasing ‘suck’ the convertors’ stocks.

If the lockdown completely removed by the government on 3rd May, One and half months is very short period to cater to the demand of upcoming academic sessions for the notebook manufacturers.

“In respect to the notebook, most of the convertors have 60 to 70 percent fixed customers and in that case, convertor can’t sell the finished goods on higher price. Retaining of the fixed customers for a convertor is always on priority, but by any chance, notebook’s retailers can hike the price by 2 to 5 percent,” Mr. Sharan Biradar said, a notebook manufacturer in Bengaluru.

“As and when schools and colleges reopen, there will be enormous demand for notebooks and books for the new session. There is need to restore the entire supply chain beforehand, so that children do not suffer,” says AS Mehta, President, IPMA.

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