Packaging entrepreneurs to strike against paper mills' arbitrary price hikes, affecting 150 mills in North India, with plans to source paper from Gujarat, Madhya Pradesh, Maharashtra, and West Bengal

Packaging entrepreneurs to strike against paper mills' arbitrary price hikes, affecting 150 mills in North India, with plans to source paper from Gujarat, MP, Maharashtra, and West Bengal

-In areas like Tronica City, Ghaziabad, and Sahibabad, around 300-500 units consume 200,000-250,000 tons of paper, generating an estimated ₹700 crore in business
-The unjustified 20-25% increase in the price of kraft paper has caused a working capital crisis for these industries, forcing them to take this step in protest
- A social boycott of all North Indian paper mills and decided not to place any paper-related orders with them, Setback for 150 Paper Mill Operators in North India
The Pulp and Paper Times

Packaging entrepreneurs have announced a strike starting from the 5th October in protest against the arbitrary price hikes by paper mills, which have raised prices by up to 25% in the last three months. In the city (Kanpur), around 300 units are operational, of which 290 will halt production for a week.

In Kanpur, packaging units will remain closed for a week starting October 5th in protest against the erratic pricing policies of paper mills. Mill operators raise or lower prices unpredictably, with rates increasing from ₹24 to ₹36-45 per kilogram in the past three months. This sudden price hike causes capital to get stuck and goods to spoil, prompting demands for regulation.

At a meeting held at a hotel in Dadanagar, officials of the Uttar Pradesh Corrugated Box Manufacturers Association, Kanpur, expressed their concerns. President Vivek Kanodia voiced anger over the paper mills' arbitrary practices.

“The majority of packaging units fall under the micro category of MSMEs, with an average of 25-30 employees working in each unit. Due to the arbitrary pricing by paper mills, production in many of these units has reduced by half. Small industries are bearing the brunt of price hikes made without prior notice over the past three months.” Mr. Vivek Said.

There are around 300 units in the city, of which 290 will halt production for a week. The unjustified 20-25% increase in the price of kraft paper has caused a working capital crisis for these industries, forcing them to take this step in protest.

Frustrated with the formation of a syndicate by North Indian paper mills to unfairly inflate paper prices, entrepreneurs from Uttar Pradesh’s packaging and printing industry took a major decision on Friday. They announced a social boycott of all North Indian paper mills and decided not to place any paper-related orders with them.

Instead, the industry plans to source paper from mills in Gujarat, Madhya Pradesh, Maharashtra, and West Bengal, where they can get higher-quality paper at a lower cost compared to the inflated prices in North India. This shift is expected to help the industry find better quality paper at more competitive rates.

The Uttar Pradesh Corrugated Box Manufacturers Association (UPCBMA) has estimated a loss of over ₹1,000 crore across the state due to the recent surge in paper prices. The worst-hit regions are Gautam Buddha Nagar and Ghaziabad, where industries have been severely affected. Under the banner of UPCBMA, packaging industries across the state are preparing for a strike starting October 3rd.

State President SK Chauhan stated that there are approximately 1,500 corrugated box manufacturing units in Gautam Buddha Nagar and 500 in Ghaziabad. These two districts alone have suffered losses amounting to ₹450 crore due to the rising paper prices. The paper supply for these industries primarily comes from Muzaffarnagar, Kashipur, Saharanpur, Punjab, and Haryana.

Former President of the Uttar Pradesh Corrugated Box Manufacturers Association (UPCBMA), Sushil Sood, revealed that the Competition Commission of India (CCI) had ruled in favor of corrugated box manufacturers four years ago, with mill operators pledging not to arbitrarily hike paper prices. However, these mills have resumed their unfair practices, significantly raising prices once again.

Sood warned that the closure of corrugated box industries ahead of the festive season could severely impact both the market and the economy, as no product can be sold without packaging. The continuous rise in paper prices is pushing the industry toward closure, jeopardizing the livelihoods of nearly 200,000 workers directly involved in the business.

Former UPCBMA president Rajendra Bhati pointed out that paper mill operators are intentionally creating an artificial shortage to charge higher prices. He called on the state government to intervene and save more than 5,000 industries from collapsing. In areas like Tronica City, Ghaziabad, and Sahibabad, around 300-500 units consume 200,000-250,000 tons of paper, generating an estimated ₹700 crore in business. The strike could further intensify the crisis in the packaging sector.

News input from various news daily Amar Ujala, Dainik Jagarn

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