Indian Paper Industry under pressure; Mills announce multi-phase price revisions

Indian Paper Industry under pressure; Mills announce multi-phase price revisions

Indian Paper Industry under pressure; Mills announce multi-phase price revisions

- BGPPL stated that the pace of cost inflation is such that, despite absorbing a substantial portion of these increases and the recent price increases, the sustained currency depreciation and ongoing unpredictability have made it unavoidable to take further corrective action.

The Pulp and Paper Times

Amid escalating geopolitical tensions and ongoing war-driven disruptions, the Indian paper industry is witnessing a fresh wave of price hikes, as mounting input costs and the appreciation of the US dollar continue to exert significant pressure on manufacturers. This below circular has been issued by Indian paper mills increasing their prices amid the war, due to the surge in input cost and dollar appreciation, with Indian paper mills facing the heat of cost pressure. Paper mills have recently announced fresh price increases for paper products as the industry faces mounting cost pressures from higher fuel prices, rising insurance premiums, longer transit times, and the appreciation of the US dollar, with these factors significantly impacting logistics costs and the landed price of key raw materials.

Bilt Graphic Paper Products Limited (BGPPL) informed all channel partners and dealers in its circular dated 1st April 2026 that volatility has got embedded in the operating environment, and market uncertainties due to the current geopolitical situation in global and domestic markets have deepened further, directly impacting supply chains across multiple fronts, including imported pulp, chemicals, shipping freights, and energy, altering the fundamentals of cost structure. The company stated that the pace of cost inflation is such that, despite absorbing a substantial portion of these increases and the recent price increases, the sustained currency depreciation and ongoing unpredictability have made it unavoidable to take further corrective action. Accordingly, P11 (+2000 Rs/MT) shall be applied across all grades (except Copy Paper & Bond) on all billings w.e.f. 08.04.2026. Kindly note that there is a limited allocation at P11, post which P12 shall apply. To minimise disruption in the market, the company has consciously chosen to implement these revisions in phased steps rather than through a single sharp increase.

BILT further said on 1st April that this is in continuation of its earlier communication dated 20th March 2026. In view of the continuous increase in input costs due to prevailing geopolitical factors, the company has announced a price increase of Rs. 2,000 per metric ton across all varieties, including REB and Cupstock, effective 1st April 2026, noting that this revision is necessary to partially offset the overall cost impact.

Bindal Paper Mills said on 31st March 2026 that due to the ongoing geopolitical developments across key global regions, the company is experiencing significant disruptions in the supply chain, leading to a substantial increase in the cost of critical raw materials, chemicals, energy, and logistics associated with paper manufacturing. The company highlighted that prices of pulp, starch, sizing chemicals, and other essential inputs have risen sharply over the past few months. Additionally, higher freight charges and volatility in fuel costs have further impacted overall production expenses. Despite continuous efforts to optimize operations and absorb these increases, the sustained cost pressure has made it unavoidable to revise the pricing structure. Effective from 31.03.2026, there will be an increase of Rs. 2000/MT in the prices of all products, including Writing & Printing Paper and Copier Paper. The company added that this decision has been taken after careful consideration to maintain the quality, consistency, and reliability expected by its customers.

Khanna Paper Mills also stated on 31st March 2026, announcing a price increase in Copier Grades by 3000 PMT in April 2026. The company noted that due to the ongoing conflict in the Middle East and prevailing geopolitical challenges, the supply chain has been significantly disrupted, severely impacting the availability of raw materials, with virgin pulp prices rising to USD 650 PMT and continuing to trend upwards. In addition to raw material constraints, there has been a substantial increase in shipping and logistics costs. Furthermore, fluctuations in the USD/INR exchange rate, around 95 as on today, are continuing to put pressure on overall input costs. In view of the sustained rise in input costs and the impact of currency fluctuations, it has become necessary to revise the price of Copier Paper by 3,000 PMT, effective April 2026.

To facilitate smoother and steadier market absorption, the price revision will be implemented in three phases: Phase 1 includes an increase of 1,000 PMT effective Wednesday, 1st April 2026; Phase 2 includes an additional increase of 1,000 PMT effective Wednesday, 15th April 2026; and Phase 3 includes an additional increase of 1,000 PMT effective Saturday, 25th April 2026. As per KPM policy for Copier Grades, the revised prices will be applicable on a dispatch basis from the respective effective dates. For any clarification or assistance, customers may contact their respective zonal sales teams.

Asia Pulp and Paper (APP) on 2nd April 2026, has announced a fresh round of price increases as global cost pressures and supply chain disruptions continue to intensify across the paper industry. Over the past few weeks, paper manufacturers have been grappling with substantial cost escalations and disruptions impacting the availability and pricing of key inputs, including binders, colour formers, dyes, brightening agents, pigments, inorganic additives, and other essential chemicals, along with pulp and energy. In addition, shipping and logistics costs have continued to rise sharply due to Emergency Fuel Surcharges, Bunker charges, War surcharges, and persistent Port congestion charges, further straining overall production economics.

Despite implementing a price increase last month and making continuous efforts to absorb a significant portion of these rising costs internally, the magnitude of the escalation has made it unavoidable for the company to undertake another price revision. Accordingly, APP has announced a price increase of USD 50 per metric ton across its standard product range and USD 150 per metric ton for Thermal products, effective for April intake for May production. The move reflects the ongoing challenges faced by global paper producers amid volatile input costs and logistical disruptions.
 

Published at : Apr 02, 2026 02:56 PM (IST)