Paper industry sees 6–7% price rise ahead; paper mills hike prices across duplex, packaging board, and WPP grades: Insights from experts

Paper industry sees 6–7% price rise ahead; paper mills hike prices across duplex, packaging board, and WPP grades: Insights from experts

- Amid the implementation of MIP on virgin packaging board, several mills have increased their prices by Rs. 1 to Rs. 3 per kg on duplex, virgin packaging board, and WPP paper. 

The Pulp and Paper Times

The domestic paper industry continues to face significant challenges, marked by persistently high domestic wood prices and an influx of competitively priced imports. These pressures have strained sales and margins across the sector. Cheaper imports have impacted sales realizations and intensified competition in the domestic market, leading to lower net sales realizations. In response to sustained industry appeals, the DGTR has recently initiated antidumping investigations into paperboard imports from Indonesia, signaling potential trade protection measures.

“In continuation of our earlier circulars, and in view of unabated cost escalations arising due to INR depreciation, higher Wood costs, increased supply chain expenses driven by global uncertainties, etc. we are compelled to further revise our prices to ensure operational viability. To minimize disruption in the market, we have consciously chosen to implement these revisions in phased steps rather than through a single sharp increase,” Bilt Graphic Paper Products Limited (BGPPL) informed all channel partners and dealers in its circular dated August 18, 2025

On paper prices in Q1 FY25-26, Mr. Pavan Khaitan, Vice Chairman and Managing Director of Kuantum Papers Ltd (KPL), during the conference call for Q1 FY25-26 said, “Q1 witnessed a marginal increase in prices compared to Q4. We were able to increase prices by about 0.7–0.8%. However, in July and August, prices declined 7–8% from the June quarter.

Talking to The Pulp and Paper Times, Mr. Bhavesh Gala, Managing Director of Infinity Industries Pvt. Ltd, said, a price turnaround is anticipated. Industry leaders expect a 6–7% increase in Paper prices over the next few months. This is attributed to rising international wood prices, recent hikes in board and packaging Paper prices (~Rs. 3,000/ton), and stabilization of pulp and fibre costs expected in late FY26, but the same remains to China and Indonesia too and they too will adjust accordingly and still be ahead of others.

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has tightened import conditions for certain paper and paperboard products by amending the Import Policy under Chapter 48 of ITC HS, 2022. Through Notification No. 26/2025-26 issued on August 22, 2025, the government has made compulsory registration under the Paper Import Monitoring System (PIMS) mandatory for specified HS codes and imposed a Minimum Import Price (MIP) of INR 67,220 per MT on Virgin Multi-layer Paper Board (VPB) imports till March 31, 2026.

Amid the implementation of MIP on virgin packaging board, several mills have increased their prices by Rs. 1 to Rs. 3 per kg on duplex, virgin packaging board, and WPP paper. 

“Over the past few months, we have been continuously experiencing high cost of raw material and other ancillary costs. At the same time, our margins have been under considerable pressure, making it challenging to sustain operations at the current pricing levels.

In order to continue ensuring consistent supply and maintaining the quality standards you rely on, we find it necessary to revise our pricing. Accordingly, we propose a price increase of Rs.3000/- per metric ton on our virgin packaging board (all grades), effective from 26th August 2025. This adjustment is essential to balance the continuously high input costs and safeguard our minimum level of margins to ensure uninterrupted supplies.” Century Pulp and Paper said in its circular recently.

BGPPL further informed that, to partially offset the impact of rising input costs, we shall apply P2 (+1500 Rs/MT) on all Coated and Uncoated varieties (All Maplithos, Fine Print, Posters, Copy Papers, C2S, C1S, C1S SP and other varieties) – on billings w.e.f. 01.09.2025. Given the continuing strain on the industry, further increases in both Coated and Uncoated grades are anticipated.

“Q2 is typically the lean season for the industry, so this reduction is on expected lines. We are well-prepared to handle such declines through operational efficiencies, as raw material prices also support margin stability. Looking ahead, two factors will drive prices. First, the printing and publishing industry picks up post-Diwali, which this year falls earlier on October 20. We expect price escalation by mid-October. Second, government tenders have opened much earlier than in previous years. Once executed, these tenders will ease market pressure, balance demand-supply, and support stable, upward-trending prices.” Mr. Khaitan said.

Bilt Graphic Paper Products Limited (BGPPL) informed all channel partners and dealers in its circular dated August 1, 2025, Wood prices continue to remain at elevated levels with no indication of relief. The ongoing monsoon has further aggravated the situation, severely impacting Wood availability. Moreover, during this time, the moisture content in the Wood being sourced has increased from the usual 35% to 40%++, directly affecting the cost structure.

Mr. Khaitan further explained, “Paper demand dips slightly as the industry prepares for the new education year (26–27), but post-Diwali, printing activity surges, and demand rises. This pattern is normal and has been consistent for years.”

Replying to a question on pulp prices, Mr. Khaitan said, “International wood pulp prices have declined. Hardwood pulp is currently around $500 per ton, down from over $600 last year. Softwood pulp is ruling at about $570 per ton. However, this decline does not significantly benefit us, as imported pulp constitutes only 3–4% of our raw material. Going forward, as production increases, we plan to use more imported hardwood pulp to improve quality at reasonable pricing.”
 

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