Kraft Paper market recovers ahead of festive season; Price hike expected soon: Insights from IRPTA

Kraft Paper market recovers ahead of festive season; Price hike expected soon: Insights from IRPTA

- Kraft Paper Market Eyes Recovery Post-Kavad Yatra Disruptions and Monsoon Chaos
- Despite having finished stock ready, the mills couldn't move material due to non-availability of trucks
- The rate of Finished paper is definitely expected to touch Rs. 31 per kg soon and may reach up to Rs. 32 per kg by the end of August or the first week of September

August 6, 2025 | The Pulp and Paper Times Bureau

With the Kanwad Yatra over and monsoon disruption expected to ease, the kraft paper industry is preparing for a rebound. Mills are optimistic that the next few months—driven by seasonal demand and clearer logistics—will help stabilize both production and pricing.

The finished kraft paper market in Western Uttar Pradesh and North India is steadily returning to normalcy, reaching pre-Kanwad Yatra levels after nearly a month of disruption, said Naresh Singhal, President of the Indian Recovered Paper Traders Association (IRPTA). “From July 10 to August 4, the market faced considerable challenges due to environmental restrictions and transport limitations during the Kanwad Yatra. However, over the last three days, we’ve seen a speedy recovery, aided by the early momentum of the festive season,” he said.

Singhal expressed optimism for the coming days, predicting further improvement in market activity within the next 5 to 10 days. He also anticipates an upward revision in corrugated waste paper prices, citing growing demand for finished kraft paper as the driving factor.

According to current market insights, corrugated waste paper in Western U.P. is averaging between Rs. 18,700 to Rs. 19,000 per metric tonne, while finished kraft paper (18+ BF, 140 GSM) is trading at approximately Rs. 30 per kg. Notably, prices in the Gujarat market remain largely unchanged, holding steady at similar levels for the past two months.

After weeks of operational hurdles triggered by religious Kavad Yatra, India’s kraft paper market is finally showing signs of recovery. According to Mr. Singhal, logistical issues arising from the Kavad Yatra and relentless monsoon rains had brought movement of goods to a near standstill in key manufacturing zones.

These curbs, lifted only after 26th July, left many paper mills with stocked goods and no transport available to dispatch them. “Despite having finished stock ready, the mills couldn't move material due to non-availability of trucks,” he added.

Markets are currently highly competitive. According to Mr. Naresh Singhal, the supply chain in Uttarakhand remained significantly disrupted until August 4th due to roadblocks and diversions caused by the Kanwad Yatra. “Material movement to factories was insufficient to meet production requirements,” he noted. However, with the easing of restrictions and normalization of routes, Mr. Singhal believes that market conditions in both Uttarakhand and surrounding regions are likely to stabilize soon. “I expect the rates in both regions to come closer in the coming days as logistical challenges are resolved,” he added.

In a strong indication of market momentum, Naresh Singhal, President of the Indian Recovered Paper Traders Association (IRPTA), has projected a further hike in finished kraft paper prices in the coming weeks. “The rate is definitely expected to touch Rs. 31 per kg soon and may reach up to Rs. 32 per kg by the end of August or the first week of September,” said Mr. Singhal. The anticipated surge is being driven by improving demand, festive season buying, and easing supply chain disruptions post-Kanwad Yatra

He highlighted the case of Kamakshi Paper, where over 850 tonnes of kraft paper remained in storage for almost a month. “They dispatched their first truck only recently, after 20 days,” he revealed.
Stretching from Garhmukteshwar to Kashipur, several districts witnessed vehicle bans, traffic diversions, and strict pollution control measures through much of July.

In addition to the Yatra-related disruption, torrential rains across Delhi-NCR, Haryana, and other northern states compounded the logistics crisis. “I believe from 20th August onwards, demand will revive strongly as roads reopen and transport normalizes, this momentum in demand will last to Diwali” said Singhal, pointing out upcoming festivals like Raksha Bandhan and Janmashtami as triggers for increased consumption.

Imported waste paper is becoming expensive due to a strengthening dollar, with double-sorted varieties ranging between $190–200/tonne.

“Due to high import costs and the weak rupee, many mills are now relying more on domestic waste paper,” Singhal explained.
 

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