Overview of exports of select type of paper and key raw material used in the industry by Crisil Intelligence

Overview of exports of select type of paper and key raw material used in the industry by Crisil Intelligence

The Pulp and Paper Times

The following table provides an overview of India's exports of paper and paper products, catego rised by (HS) codes, for FY24 and FY25. The table also highlights the top 3 countries if export for particular HS codes. Among the select HS codes, the top 3 countries to which India exported the most paper products in FY25 were USA, UAE and Sri Lanka which made up a share of 19.3%, 12.3% and 6.6% respectively.

India’s liquid packaging market heavily dependent on paper and paperboard materials

The liquid packaging industry in India is experiencing significant growth, closely intertwined with the paper and paperboard sector. India's liquid packaging market is heavily reliant on paper and paperboard materials, particularly in the form of aseptic cartons (widely used for Ultra-high temperature (UHT) milk and juices, leveraging paperboard as the primary material) and laminated paper-based pouches. These eco-friendly materials offer several benefits, including biodegradability, recyclability, and compatibility with high-speed filling lines. The paper industry's emphasis on producing high-quality, food-grade paperboard has enabled the creation of packaging solutions that meet rigorous safety and hygiene standards, which is crucial for packaging liquid c onsumables.

The beverage sector, encompassing dairy products and fruit juices, is expected to be the fastest-growing segment in India's paper packaging market, with a projected growth rate of around 21% between 2024 and 2029. This rapid growth is largely driven by the increasing demand for paper-based packaging solutions in the dairy industry, as well as the rising popularity of fruit juices and ready-to-drink beverages. As a result, paper packaging is becoming an increasingly vital component of the Indian beverage industry, offering a sustainable and safe alternative to traditional packaging materials.

Profitability of paper and board players (set) marginally reduced in FY24

Margins have declined in fiscal 2024 owing to lower realizations. Declining trend is expected in fiscal 2025 as well with moderating demand and realization in the market. In fiscal 2023, operating margin increased by over 800 bps on-year to reach 22% owing to improved realizations. Higher energy costs are expected to have been passed on to the consumers.

The set includes 16 W&P players and Paperboard players such as Andhra Paper Ltd., Emami Paper Mills Ltd., Genus Paper & Boards Ltd., JK Paper Ltd. Kuantum Papers Ltd., NR Agarwal Industries Ltd., Orient Paper and Industries Ltd., Pakka Ltd., Pudumjee Paper Products Ltd., Ruchira Papers Ltd., Satia Industries Ltd., Seshasayee Paper and Boards Ltd., Shreyans Industries Ltd., Star Paper Mills Ltd., Tamil Nadu Newsprint and Papers Ltd. and West Coast Paper Mills Ltd. Source: Company reports, Crisil Intelligence

Overview of key raw material used in the industry

The Indian paper industry is heavily reliant on three key raw materials — wood and wood-based pulp, wastepaper (recycled paper), and agricultural residues. The availability, pricing, and procurement dynamics of these inputs play a critical role in determining the industry's competitiveness and profitability.

Wood and wood-based Pulp 

Wood-based pulp is the primary raw material for manufacturing higher-quality Writing and Printing (W&P) paper, particularly in the maplitho, copier, and coated paper segments. The domestic wood prices fell in fiscal 2024, in line with global prices. Currently, India has 10 lakh hectares of farm forests spread across Odisha, Andhra Pradesh, Gujarat, Karnataka, Kerala, Tamil Nadu, and Maharashtra. Though domestic land under cultivation is expanding by 10% every year, it is still insufficient to cater to the industry's requirement resulting in import dependency. As of FY24, India imported 2.46 million tonnes of wood pulp (Corresponding to HS codes: 4701, 4702, 4703, 4704 and 4705). Out of these, imports from South Africa comprised 24.7%, Indonesia made up 16.2% and Canada 12.4%.

Wastepaper (recycled paper)

The collection activity and recovery rate of wastepaper/OCC is robust in some parts of India. However, to make up for the loss of material as fines after many rounds of recycling or blending of domestic wastepaper, imported wastepaper is added to increase the fiber content and achieve the required parameters for higher-grade industrial paper. 

In fiscal 2024, wastepaper prices declined further by ~28% with lower demand and existence of balanced demandsupply in the market. In fiscal 2025, domestic prices are expected to have increased on account of supply disruption caused due to the red sea disruption and higher freight in the long run prices are exp ected to near prepandemic levels. As of fiscal 2025, the prices have further increased to Rs. 18 per kg on account of decline in wastepaper availability.
 

Published at : Jun 12, 2026 09:51 AM (IST)

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