West Asia conflict impacts multiple cascading effects across the industrial supply chain: BGPPL, BILT, and Emami hike paper prices; prolonged disruption can force paper machines to slow down

West Asia conflict impacts multiple cascading effects across the industrial supply chain: BGPPL, BILT, and Emami hike paper prices; prolonged disruption can force paper machines to slow down

- The rising Crude Oil prices are putting pressure on the Indian rupee, resulting INR is historically at the lowest point against USD and can slide further
- Many key chemicals used in the Paper Industry-including latex, coating chemicals, and other Petrochemical derivatives are directly linked to crude oil.
- Imported coal prices in Asia have already risen by nearly 20% in recent weeks, driven by higher shipping costs and supply disruptions.

The Pulp and Paper Times | 10 March 2026

Paper mills have recently announced fresh price increases for paper products as the industry faces mounting cost pressures from higher fuel prices, rising insurance premiums, longer transit times, and the appreciation of the US dollar. These factors are significantly impacting logistics costs and the landed price of key raw materials.

Bilt Graphic Paper Products Limited (BGPPL) informed all channel partners and dealers in its circular dated March 9, 2026, we would like to bring to your attention the rapidly evolving global situation which is beginning to impact the Paper Industry supply-chains globally. The recent geopolitical developments in the Middle East have severely disrupted global Crude Oil supply routes, particularly through the "Strait of Hormuz", which handles nearly 20-30% of global Crude Oil shipments. Brent Crude Oil prices have surged by approximately 26% during early trading today, reaching their highest level (> 115 $ per barrel) since July 2022. India, being the third-largest importer of Crude Oil globally, is particularly vulnerable to such fluctuations.

The rising Crude Oil prices are putting pressure on the Indian rupee, resulting INR is historically at the lowest point against USD and can slide further. BHU, which imports nearly 65% of its raw materials, has been impacted the most.

In addition to the depreciation of the Rupee, this situation has triggered multiple cascading effects across the industrial supply chain. Many key chemicals used in the Paper Industry-including latex, coating chemicals, and other Petrochemical derivatives are directly linked to crude oil. Due to this crisis, Petrochemical producers have started cancelling previously confirmed orders and are sharply revising prices for orders already booked. As a result, the availability of latex and other coating chemicals essential for Paper manufacturing has become highly uncertain, creating serious supply concerns for the industry.

“The ongoing geopolitical developments in Western Asia have significantly impacted the overall cost matrix of Virgin Packaging Board manufacturing, as highlighted in our earlier communications.

The current situation has led to widespread disruptions in global freight movement, resulting in an escalation of costs across several key raw materials. Suppliers have implemented war- related surcharges, additional freight charges, and ad-hoc price increases citing higher substrate costs. The major areas of impact include Binder, petroleum-based chemicals, other essential imported chemicals, pulp prices, and logistics costs. In addition, the continued depreciation of the Indian Rupee has further intensified the cost pressures.” Emami Paper Mills limited informed all channel partners and dealers in its circular dated March 9, 2026.

“As you are aware Latex and Petrochemical-based additives are essential for Coated Paper manufacturing. Any prolonged disruption in these chemicals can force Paper Machines to slow down or even temporarily stop operations due to non-availability of these critical inputs. We are actively evaluating mitigation measures, but the severity and evolving nature of the crisis may limit their effectiveness.

The crisis is also pushing up global energy and freight costs. Imported coal prices in Asia have already risen by nearly 20% in recent weeks, driven by higher shipping costs and supply disruptions. Since coal remains a major fuel for Paper Mills, this significantly increases manufacturing costs.” Bilt Graphic Paper Products Limited (BGPPL) stated in circular.

“This is to bring to your kind notice that due to ongoing geopolitical unrest, an abnormal price increase has been observed across the entire input basket, particularly in Coal, Wood, and Chemicals. To partially offset this additional cost, there will be a tentative price increase of Rs. 2500-3500 per MT shortly.” BALLARPUR INDUSTRIES LIMITED (bilt) informed all channel partners and dealers in its circular dated March 10, 2026

“In view of the above circumstances, to partially offset the increase in cost and in order to keep our operations sustainable and viable, we shall apply P6 (+ 2000 Rs PMT) on CIS, CIS SP & C2S for all billings with effect from 12.03.2026. Given the current environment, where Cost drivers are changing rapidly on daily basis, price revisions will be more frequent and may be implemented at short notice.” Bilt Graphic Paper Products Limited (BGPPL) stated in circular March 9, 2026.

“Despite our sustained efforts to absorb these rising input costs, the prevailing circumstances have made a price revision unavoidable. In order to partially offset the increase in production costs, we are constrained to implement a price increase of INR 3,250 per MT on all Virgin Packaging Board Grades, effective 21 March 2026.” Emami Paper Mills stated in its circular.

“We are writing inform you of a necessary price adjustment USD50/MT for all our CCBU products with immediate effect. This difficult decision is driven by unprecedented and sustained increases of disrupted supply chains of logistic, escalating energy costs as well as the rising raw material costs.” Asia Pulp and Paper (APP) stated in its circular March 9, 2026.
 

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