Input cost inflation and academic season demand push Indian paper mills to announce fresh price hikes in 2026

Input cost inflation and academic season demand push Indian paper mills to announce fresh price hikes in 2026

- Hardwood pulp prices are now trending towards USD 600+ PMT, with limited availability ahead of the Chinese New Year
- The release of tender orders has further strengthened demand for writing and printing grades.

The Pulp and Paper Times

India’s pulp and paper industry has entered 2026 on a firm footing, with improving demand and a fresh round of price hikes driven by rising input costs. Escalating pulp prices, a weaker rupee, higher wood and logistics expenses, and strong post-Paperex demand—particularly from the publishing and notebook segments ahead of the academic season—have prompted several paper manufacturers to revise prices across writing, printing, copier paper, and board grades.

Bilt Graphic Paper Products Limited (BGPPL) informed all channel partners and dealers in its circular dated January 2, 2026, that the New Year 2026 has started on a very positive note for the pulp and paper markets. The company stated that it crossed 50K billing in December ’25 after a rather slow quarter.

“Reference to our earlier circulars and market communications regarding the escalation in input costs and the evolving market scenario. Hardwood pulp prices, which had bottomed out during July–August 2025, have since witnessed multiple successive increases and are now trending towards USD 600+ PMT, with limited availability ahead of the Chinese New Year. Simultaneously, the INR has depreciated significantly against the USD, further aggravating raw material costs, particularly for BHU, which has a ~65% import dependency. These factors, coupled with higher wood costs, increased logistics and supply chain expenses, and annual structural increases in fixed costs, have materially altered our cost structure,” BGPPL stated in the circular.

According to ResourceWise’s blog, Chinese overcapacity and the resulting market pressure will drive additional protectionist actions in regions with significant pulp and paper manufacturing, such as Europe, India, and possibly Brazil. Importing countries with small domestic manufacturing bases will become the new battlegrounds in trade, with globally trade-exposed Western companies losing share and margins.

At the same time, Chinese exports of pulp and paper will weaken global prices as they make inroads into India and Brazil. This activity will dampen global markets, putting price pressure on U.S. producers despite tariffs. The Chinese government may need to bail out its industry as hyper-competition results in zero-sum outcomes for many players.

Mr. Pavan Khaitan, VCMD of Kuantum Papers Ltd., said during the Q2 FY26 conference call, “Pricing remains challenging due to rising input raw material costs. Paper prices are largely stable at the moment, but we expect an upward trend in Q3 and Q4, as typically seen each year.”

Khanna Paper Mills is increasing prices by Rs. 3,000 PMT in writing and printing grades, with immediate effect from January 6, 2026.

“Escalating input costs, driven by the $/₹ exchange rate, have necessitated this price increase to ensure sustainable operations,” Khanna Paper Mills stated in the circular.

BGPPL further stated that on the demand front, post-Paperex, the company is witnessing a clear pickup across segments, particularly from publishing and notebook customers, with procurement already underway for the upcoming academic season. The release of tender orders has further strengthened demand for writing and printing grades.

“Accordingly, to partially offset the sustained escalation in organic and inorganic costs, we are implementing P3 (+Rs. 1,000 PMT) on billings of BHU and BPU for all grades, except NSD/CG/SSP and their variants, with effect from January 12, 2026,” BGPPL concluded.

KR Pulp and Papers is increasing prices for copier paper by Rs. 2,000 PMT, with immediate effect.

EDICON Paper Product has announced a price revision, with an increase of Rs. 1,000 PMT across all grades of duplex board, effective today, January 7, 2026. The increase has been motivated by the continuous rise in raw material and other input costs.

“Due to the tremendous increase in the cost of raw materials and chemicals, we are forced to increase the rate of the writing and printing paper segment by Rs. 2,500 PMT with immediate effect,” Rayana Paper Board Ind. Ltd. stated in its circular.
 

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