Paper Industry Cost Pressures Deepen; Price Revisions Announced Across Writing & Printing Grades

Paper Industry Cost Pressures Deepen; Price Revisions Announced Across Writing & Printing Grades

The Pulp and Paper Times

Paper manufacturers have announced price revisions across various paper grades, citing sustained increases in raw material, chemical, energy, fuel and logistics costs. Seshasayee Paper & Boards Limited, BGPPL and Bindal Papers Mills have communicated price increases effective from October 2026.

Seshasayee Paper & Boards Raises Prices by Rs. 4,000 per Tonne

Seshasayee Paper & Boards Limited (SPB) has announced an upward revision of Rs. 4,000 per tonne across all its paper products manufactured at its Erode and Tirunelveli units, effective October 1, 2026.

In a communication to its valued indentors, the company said the revision has become necessary due to continued cost pressures across key raw materials, energy and fuel, chemicals, logistics and distribution.

SPB said prices of key inputs, including bamboo, hardwood pulp and imported wood pulp, have increased significantly over the past year, with the escalation becoming more pronounced during the last three to four months due to global supply shortages.

The company said the cost of wood, a key raw material, is now expected to increase by more than 25%, amid intense competition from other industries.

SPB also highlighted elevated coal and biomass fuel prices, which have directly affected steam and power generation costs. According to the company, coal prices have increased by nearly 25%.

The company further said prices of process chemicals, including caustic soda, chlorine dioxide and sizing agents, have increased materially. Prices of some critical processing chemicals have risen by more than 50% over the last six months, reflecting tighter global supply chains and currency-related pressures on imports.

Higher freight rates and diesel prices have also increased inbound logistics costs, adding to the overall cost pressure.

SPB said the price revision has been carefully considered and represents the minimum necessary adjustment to sustain the quality and reliability associated with its brand. The company reiterated its commitment to providing competitive products, consistent supplies and continued sales support.

BGPPL Announces Further Price and Booking Revisions

Separately, BGPPL said it continues to face strong cost-side headwinds, particularly from energy costs and the impact of disruptions in the Middle-East crude markets.

The company said the season has started sharply on the back of a dry pipeline, while shipping freight rates remain at all-time highs, particularly for China-origin shipments.

BGPPL said it achieved record billing in September 2026 but continues to be unable to keep pace with demand.

The company said it was reviewing distributor-wise and machine-wise bookings and pending orders as of October 1, 2026.

According to the circular, bookings at P0+12K for PM#7 were being closed with immediate effect. Going forward, any additional market requirement would be serviced at P0+14K, subject to limited allocation.

For BPU's other machines, PM#1 to PM#6, as well as Products & Copy Paper across all brands and GSMs, BGPPL announced P5 (+Rs. 1,000 per MT) effective October 8, 2026.

Bindal Papers Mills Announces Price Increase

Bindal Papers Mills has also announced an upward revision in paper prices, effective October 1, 2026, citing a significant increase in the cost of key raw materials and chemicals used in paper manufacturing.

In its circular, the company said the rise in raw material and chemical costs has resulted in continued pressure on production and operating costs. Despite efforts to absorb the increases, the prevailing cost situation has made a price revision unavoidable.

The company has announced the following price increases:
•  Writing & Printing Grades: Rs. 4,000 per MT
•  Copier Paper: Rs. 2,000 per MT
The revised prices will be applicable from October 1, 2026.

The price revisions announced by the three paper manufacturers come amid continued pressure on major cost components of paper manufacturing, including fibre, pulp, chemicals, energy, fuel and logistics.
 

Published at : Oct 03, 2026 07:08 AM (IST)

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