FPTA on Budget: Put more emphasis on local collection of waste paper, welcomes legislative changes to promote agroforestry

                     

Customs Duty on waste paper imports will increase paper price by approximately Rs.1000 / PMT

Mumbai | 9th February 2022 | The Pulp and Paper Times:

The Prime Minister Shri Narendra Modi and the Finance Minister Smt. Nirmala Sitharaman deserve praise for presentation of the development and infrastructure, oriented budget and that too without the imposition of any new taxes.

The budget is a step forward in the right direction and shall bring transparency and ease of doing business.

Reacting over the Budget exclusively with The Pulp and Paper Times, Federation Of Paper Traders Associations of India (FPTA)’s President Mr. Deepak Mittal says, “As far as the Paper Industry is concerned, one thing that has been introduced in the Budget 2022 is the imposition of Customs Duty on waste paper imports at the rate of 2.5% (actual user condition).  This will increase the cost of the final product by approximately Rs.1000 / PMT (as approximately 1.5 MT waste paper is required to make one ton of Paper).  This is a welcome step and should wake up the domestic Paper sector to start looking inwards and put more emphasis on local collection of waste paper.  At the moment, the domestic collection of waste paper is very poor and close to 60 – 65% of the domestic demand of recycled fibre is imported.”

Mr. Mittal praises government’s initiative to promote agroforestry and private forestry with financial support is a welcome step and shall lead to more green cover and increased availability of raw material for the domestic paper industry.

“This will greatly enhance the availability of Wood in the Industry though the fruits of this initiative will be realised in the long run.  One of the major challenges before the domestic Paper Industry is the availability of raw-material in sufficient quantity and at globally competitive prices.  India is a fibre deficient country whether it is wood, agriculture residues or recycled fibre/waste paper.  Since, the raw-material is a major cost component of the production of Paper, this single factor adversely impacts the cost competitiveness of the Indian Industry as compared to other competing countries” he added

He also says, creation of one step portal for citizen services, registration of land and property anywhere in the country, deletion of obsolete and redundant laws, promoting use of bio-mass pallets, setting up of international arbitration centre at Gift City, allowing participation of private sector in meeting the defence needs and plans to have common parameters for charging of electric vehicles are some of unique measures announced in the Budget. These steps will make life easy for public, save environment and make the country self-sufficient.

The Indian Paper Industry is at an inflection point where for the first time in many years, the demand is exceeding supply.  Coupled with this, the world is looking at a China + 1 strategy and they want India to be major supplier of Paper and Paper Board.  Also the domestic demand is galloping at a healthy pace with India’s focus now shifting in a big way to manufacturing.  All this factors will lead to a huge demand growth for Paper and Paper Board.  It is up to us how we en-cash this golden opportunity and become the paper manufacturing hub for the world in the next decade.

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