Paper price increase amid rising wood costs and a weakening INR, with upward pressure from the onset of the notebook/publishing season

Paper price increase amid rising wood costs and a weakening INR, with upward pressure from the onset of the notebook/publishing season
- Hardwood pulp prices have bottomed out and firmed up by 4–5% last month (August)
- Coated & Uncoated Paper prices have been corrected by more than 18% and 15% respectively, in the last 12 months
- Further upward pressure on prices in both Coated and Uncoated grades appears imminent

The Pulp and Paper Times

The Indian paper industry is facing another round of price hikes as manufacturers grapple with rising input costs, surging hardwood pulp prices, and the impact of rupee depreciation. The situation is further compounded by escalating import tariffs and the recent implementation of a Minimum Import Price (MIP) on paper and board products, which are expected to push domestic prices upward in the coming months. Industry experts note that while these measures aim to safeguard local mills, they may also tighten margins for downstream packaging and printing sectors.

“Global market conditions have undergone a decisive shift, with direct consequences for globally traded commodities such as Pulp and Paper. What was once governed largely by Supply / Demand dynamics is now being reshaped by escalating tariffs, restrictive non-tariff barriers and trade wars. These forces, combined with other pertinent variables are driving changes in pricing, production, and consumption across the industry worldwide,” Bilt Graphic Paper Products Limited (BGPPL) informed all channel partners and dealers in its circular dated September 1, 2025

“Hardwood pulp prices have bottomed out and firmed up by 4–5% last month (August). China’s aggressive buying at earlier low levels has squeezed availability and triggered another price hike in Sept’25 of the same order. Concurrently, escalating tariffs, volatile shipping conditions, rising Wood costs with high moisture, and a weakening INR have sharply driven up input costs,” BGPPL said.

“This price increase is on account of rising input costs, driven by the $/ exchange rate and surge in demand. In view of the same and to sustain our operations profitably, we have decided to increase the price with immediate effect.” Khanna Paper Mills said in its circular released in August 2025, Khanna Paper increased the price of W& P grades by Rs. 2 on Optima (OMP), Grafika (GSP), Elegance (ESP) effective from 1st Sept 2025

BGPPL further said that given the continuing strain on the industry, coupled with the onset of the notebook/ publishing season and tender orders, we anticipate a strong boost in demand. This has already been reflected in last month’s billing, which was among the highest in the previous couple of years. Consequently, further upward pressure on prices in both Coated and Uncoated grades appears imminent. You are requested to communicate this to your customers and step up dispatches accordingly

“We are announcing an increase of Rs. 1000/MT on all our Paper Grades ie. Writing & Printing Paper & Copier Paper from today i.e. 01.09.2025. We will be able to mitigate part of raw material increase with this increase in price,” Bindals Paper Mills said in its circular dt. 1st September 2025

“Coated & Uncoated Paper prices have been corrected by more than 18% and 15% respectively, in the last 12 months. Despite rigorous internal efficiency measures, we are currently operating at one of the lowest EBITDA levels in recent years. Absorbing these increases is no longer sustainable, as it would severely compromise operational viability. To partially offset the escalating input costs, we shall apply P3 (+1500 Rs/MT) across all grades in BHU and BPU for all billings w.e.f. 11.09.2025. To minimise market disruption, these revisions are being introduced in phased steps rather than through a single steep increase.” BGPPL informed.

“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.

“Due to the continuous rise in input costs, we propose to increase the price of all products across the board by Rs. 1,500/ton effective from 1st September 2025. For multilayer products, the price increase will be Rs. 4,000/ton. In the meantime, please inform all your customers before procuring orders for the month of September 2025,” Seshasayee Paper and Boards said in its circular recently.
 

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