Paper & paperboard imports rise by 3.5% in Apr-Sep FY25

Paper and paperboard imports rose by 3.5% to 992,000 tonnes in the April-September period of 2024-25, driven by a sharp rise in shipments from China, according to Indian Paper Manufacturers Association (IPMA).

Imports of paper and paperboard from China rose by 44% during the first half of the ongoing fiscal year despite adequate production capacities in the country, the IPMA said in a statement.

Imports of these products had surged by 34% to 19.3 lakh tonnes in 2023-24 due to higher shipments from ASEAN countries, the association said citing the commerce ministry data.

"After some moderation during the two Covid years, paper imports in India have continued to surge, hurting the growth of the domestic manufacturing industry, which is reeling under low-capacity utilisation and depressed bottom lines", said IPMA President Pawan Agarwal.

The situation is extremely critical for domestic manufacturers of virgin fibre paperboard in view of burgeoning imports from China, Chile and lately, Indonesia, which have more than tripled since 2020-21, he said.

While the domestic paper industry has already made significant capital investments to ramp up capacities, the gestation period is long, and the economic viability of the investments has been impacted significantly by the rise in predatory imports, Agarwal added.

IPMA said that in pre-budget meetings with finance and commerce ministries earlier this week, the association has recommended increasing the basic customs duty on import of paper and paperboard from 10% to 25% (WTO Bound rate is 40%) to provide domestic manufacturers a level playing field.