Paper Market scenario of WPP, Coated, and Packaging Boards, and MIP impact: Insights by Mr. Bhavesh Gala

Paper Market scenario of WPP, Coated, and Packaging Boards, and MIP impact: Insights by Mr. Bhavesh Gala

- The scene will change to reduction in Qty of Imports on Quality Coated Products
- MIP would likely raise domestic Paper prices, especially for grades currently supplied by competitive imports from ASEAN and China

The article below is written by Mr. Bhavesh Gala, Managing Director of Infinity Industries Pvt. Ltd. Mr. Gala has an experience of working in Paper Trade for more than 30 years and is the second generation of Family Business. Have been the first movers in various segments of Paper in India and has travelled extensively and have visited to more than 100 + paper mills across the globe. The views are personal.

The Pulp and Paper Times | Views taken on 20th August 2025

Report on the Paper Industry in India

1. Current Market Sentiments
Writing and Printing Paper (WPP)

The WPP segment is under pressure due to subdued demand and rising raw material costs. Prices of maplitho and creamwove Papers dropped approximately 10% in FY25, squeezing margins. Demand remains sluggish, and manufacturers are struggling to pass on cost increases and facing the competition of Imports of Premium WPP. The rates are almost near to the Precovid rates which generally has happened to all commodity grades.

Coated Paper & Boards

Imports from China and ASEAN, with coated Paper and Paperboard exports to India reaching over 400,000 tonnes in 2024 due to non availability of short production in India. Soon the scene will change to reduction in Qty of Imports on Quality Coated Products manufactured and supplied by New Upcoming Paper Mills like Naini, Silverton and others soon.

Packaging Boards (Duplex & Kraft)

This segment is performing better. Prices rose approximately 13% for duplex board and 19% for kraft Paper in FY25, as manufacturers were able to pass on some of the raw material cost increases. Demand is strong, driven by FMCG, apparel, e-commerce, and pharma sectors. Here there are no imports but companies are balancing their portfolio to the India’s requirements at competitive rates.

2. Expected Price Trends (Next 3–4 Months)

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 (~INR 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.

3. Impact of Minimum Import Price (MIP)

If implemented by the Government of India on FBB and Similar products, MIP would likely raise domestic Paper prices, especially for grades currently supplied by competitive imports from ASEAN and China. It would protect local manufacturers and helping them regain margin stability but immediately there will be Price Hike by Local Mills and soon will be a short supply in India as the demand as projected by FBB and other similar products is at 10 % approx. pa and there are no new production coming in next few years.  However, consumers may face higher prices, and there could be WTO-related trade challenges if MIP is perceived as a non-tariff barrier and will affect the Print Exports and Indirect Exports from India very badly.

4. Conclusion

Resilience through Innovation. The Indian Paper industry is at a critical juncture. While FY24 and early FY25 were tough, FY26 is expected to bring recovery. To stay competitive, manufacturers must invest in modernization, expansion and process efficiency, focus on sustainable manufacturing and packaging, and adapt to change quickly in the competitive World Paper Market. 
 

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