Rising pulp prices and weak Rupee trigger fresh paper price hikes across writing & printing grades

Rising pulp prices and weak Rupee trigger fresh paper price hikes across writing & printing grades

- Hardwood pulp is currently being quoted at USD 570++ PMT, with extremely limited availability, and January ’26 prices are projected to cross USD 600+ PMT.
- Price corrections are likely as global pulp and raw material costs adjust, but in the long term, the industry will benefit from a more level playing field.

The Pulp and Paper Times

Amid continued volatility in global pulp markets and a sharp escalation in input costs, India’s paper industry is witnessing a fresh round of price increases across writing and printing grades. Leading paper manufacturers have announced hikes citing rising pulp prices, limited availability, and a weakening Indian Rupee, which has intensified cost pressures. Industry players highlight that demand remains firm even as production planning comes under strain. Experts note that while short-term challenges persist, policy support measures such as the Minimum Import Price (MIP) are offering temporary relief. The developments point to a phase of frequent price revisions as the sector adjusts to changing cost and demand dynamics.

Bilt Graphic Paper Products Limited (BGPPL) informed all channel partners and dealers in its circular dated December 16, 2025. With reference to our circular dated 13.12.2025, wherein we had communicated that pulp prices had increased by approximately USD 60/70 PMT since Jul-Aug’25, the situation has further intensified now. Hardwood pulp is currently being quoted at USD 570++ PMT, with extremely limited availability, and January ’26 prices are projected to cross USD 600+ PMT. Additionally, the INR has depreciated further and is now trading in the range of 91 per USD.

“In view of these developments and the sustained cost escalation, we are constrained to implement P1 of +1,000 Rs PMT with effect from 22.12.2025, followed by P2 of an additional +1,000 Rs PMT with effect from 01.01.2026. This price increase is applicable for all the grades from Unit BHU & BPU,” BGPPL said.

DSG Paper said in its circular that due to a steep hike in input cost, we are increasing prices of our finished products in the writing printing grade by Rs. 2,000 PMT with immediate effect.

“Due to an unprecedented surge in demand for our Writing & Printing grades, we are receiving bookings beyond our current production planning.

“At the same time, the sharp escalation in input costs, particularly imported raw materials linked to the US dollar, has significantly impacted our cost structure. The Indian Rupee has depreciated to near all-time lows, approaching INR 91 per USD, further intensifying cost pressures,” Bhola Ram Papers said in its circular recently.

“Looking ahead, we expect the market to stabilize. Price corrections are likely as global pulp and raw material costs adjust, but in the long term, the industry will benefit from a more level playing field. What MIP has done is provide breathing space for domestic players to strengthen operations and prepare for global competitiveness,” Dr. Alok Prakash, Executive Director & CEO of M/s Ballarpur Industries Ltd. (BILT), told The Pulp and Paper Times.

In his paper market analysis, Mr. Rajat Sarkar, Director of Research at ResourceWise, said on LinkedIn that Asia, excluding China, India, and the Middle East, once again acted as both the growth engine and the shock absorber for new capacity. Plantation-based wood and rising pulp paper integration supported volumes, but volatility in OCC and market pulp prices persisted. The second half reinforced that scale without cost leadership does not translate into returns.

Mr. Pavan Khaitan, VCMD of Kuantum Papers Ltd., said during the Q2 FY26 conference call, “Pricing remains challenging due to rising input raw material costs. Paper prices are largely stable at the moment, but we expect an upward trend in Q3 and Q4, as typically seen each year.”

Khanna Paper Mills said in its circular that “we are increasing prices by Rs. 2,000 PMT in all our Writing & Printing grades, with immediate effect. This is in line with our communication shared last week. Rising input costs driven by the $/ exchange rate necessitate this price increase.”

“We are seeing a moderate impact from increased imports, both in this quarter and in Q1, with a 7%–8% rise in volumes entering the country—amounting to over a million tons. This level is manageable for now and can be absorbed competitively by the industry. However, the situation will depend on whether the government intervenes with measures to curb further increases. The MIP (Minimum Import Price) regime is already in place for paper and paperboards, and the government is now evaluating an MIP framework for the writing and printing paper segment as well,” Mr. Khaitan said.

Talking to The Pulp and Paper Times, Mr. Rajesh Jain, President, FPTA, said, “The paper trade market in India is currently navigating a complex scenario driven by post-COVID recovery, evolving packaging demands, and global disruptions. Coated paper demand remains stable due to printing and publishing, though digitalization continues to impact volume. Naini & Silverton are two new capacities that have come up in recent years.

“Given the current environment, where both cost and demand drivers are changing weekly, price revisions will be more frequent and may be implemented at short notice. Please note that prices for uncoated and coated grades applicable at the time of invoicing shall prevail, irrespective of the order placement date, unless specifically confirmed by the Regional Sales Office,” BGPPL stated in the circular.

“China confirmed its role as the primary structural disruptor. Integrated capacity additions in board, tissue, and pulp sustained export pressure and reset price expectations across Asia, India, Africa, and the Middle East. Mills prioritised utilisation and cash flow over margins, reinforcing that this pressure is structural rather than cyclical,” Mr. Sarkar stated.
 

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