Economic Slowdown Affecting Kraft Paper Market

Economic Slowdown Affecting Kraft Paper Market

Chennai: In south India Paper Mills Association there are 116 Kraft Paper Mills in the association  producing  5700 TPD kraft paper having BF ranging 12 to 32. The association communicates to the Members about developments in the industry, market news, maintains statistical data, getting the information exchanged among the Members, organizes meeting among the Members once in a month or two months. The association circulates all the relevant details to their Members regularly.Talking to The Pulp and Paper Times Mr. Krishnaswamy (see the picture) shares the problems the paper mills have been facing in south India. 

How do you see the down in sale of paper recent year in India? How Kraft paper mills are affected with this down in sale in India?

Due to economic slowdown, the market for Kraft Paper is affected since 2014 onwards.   

What are the possible reasons of increasing import of paper in view of dollar appreciation and solutions you seek to reduce the import of paper?

Dollar appreciation has resulted in increasing landed cost against imported waste paper.

How do rate South in view of Infrastructure (which comprises regular power supply, good roads, water supply, finance) compared to other states of India?

 Power supply is extremely poor in southern states and financially the mills are in bad conditions due to extended working capital requirement because of long credit period by the makret.

How long this association has been existing? Since inception of association how many paper mills there were. In this duration how many paper mills were closed and what were the reasons of closure?

The association is existence from 1988 onwards. Initially only 7 paper mills in southern India.  21 paper mills are closed over a period of 15 years.  Mainly viability of the unit, non-availability of  raw material at the required price, highly volatile market, etc.

What are the major activities of South Kraft Paper Mills Association?

Coordinating with the mills and communicating market activities, exchange of information, coordinating with State/Central Governments.

What are common major issues of South Kraft Paper Mills? What solution you seek?

Common Issues : Erratic power supply, capital investment for installing equipments for online monitoring pollution prevention and other related matters.

In last 3 years how many paper mills have been started and in next 1 year how many paper mills are going to be started despite of down in paper sale?

Many Paper mills have been started and 7 paper mills expanded and 3-5 mills are going to be started in southern states.

Recently Govt of India has released notification about financial support to the industrial clusters for common effluent water treatment.

How this common effluent water treatment scheme could be beneficial for the Southern Paper Mills in view of water pollution? What industrial cluster (name of the cluster) are required this kind of common effluent water treatment?

Common effluents treatment plants are not possible in southern India since the mills are situated in  scattered areas. 

Thanks. If you want to  ask any question from the association  please drop your mail at news @ kagaztrade.com 

Web Title: Economic Slowdown Affecting Kraft Paper Market