ICCMA appeals for price increase of 35% to offset Kraft paper and conversion cost hikes

ICCMA appeals for price increase of 35 % to offset Kraft paper and conversion cost hikes

-  Kraft Paper Price has increased 30% as compared to January 2022 price level.

Mumbai | 21st March 2022 | The Pulp and Paper Times:

Corrugated box manufacturers have urged their customers to increase sourcing prices, as these units are reeling under a sharp increase in prices and disruptions in the supply of raw materials.

The Indian Corrugated Case Manufacturers’ Association (ICCMA) has said in an advertorial published in a leading newspaper all across India that Industry is bleeding under heavy losses due to relentless price increase in paper and conversion inputs.

ICCMA appeals its valued customer to increase the price by 35%. The corrugated box industry needs price increase of 35% to offset Kraft paper and conversion cost hikes to survive in these turbulent times and request its valuable customers for immediate support without which most of the units will be forced to shut down

The corrugated box industry in the country with 400+ automatic corrugators and more than 10000 semi-automatic units,  mostly in MSME  sector are  facing immense stress on account of the unprecedented cost escalations and resultant supply dislocation over last two years. The situation has aggravated further in last couple of weeks which has seen all inputs crossing all-time highs.

Some of the recent and major domestic and international marketing events are behind the current crisis

I- Fibre shortage- both imported and domestic waste cuttings scarcity and price hikes.

II- Energy Crisis- coal and boiler fuel prices and availability.

III-  Logistic dislocation- containers availability and container freight hikes.

IV- Government actions- increase in GST on corrugated box from 12 to 18% and its impact on incremental working capital and levy of custom duty of 2.5 % on imported waste cutting.

V- Commodity up-cycle impacting all box making inputs.

Corrugated box is an eco-friendly Industry that consumes about 7.5 million MT per year of recycled kraft paper and produces 100% recyclable corrugated boxes to constitute a market of INR 40000 crore.

 The industry employs a workforce of over 7 lakhs and plays a key role in the Indian economy by enabling them the smooth functioning of supply chain for essential goods, which is particularly critical in these volatile times.

“The corrugated box Industry’s healthy growth is of vital importance, not only to keep all manufactured goods supplied with sustainable packaging but, also essential for furthering our honourable Prime Minister cherished dream of make in India” ICCMA says in Advertorial. 

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