Left Menu
Development News Edition

Corrugated packaging box makers facing raw material cost shock

Both China and India import their waste paper primarily from the USA and Europe for kraft paper manufacturing. However, Federation of Corrugated Box Mfrs of India president (elect) Milan Kumar Dey questioned the role of paper mills for raising price sharper than their raw material supply disruptions.

PTI | Kolkata | Updated: 29-11-2020 13:35 IST | Created: 29-11-2020 13:35 IST
Corrugated packaging box makers facing raw material cost shock

The corrugated paper box industry is facing a crisis as prices of raw material have shot up by 30-35 per cent threatening to turn the business unviable, an industry official said. In India, there are about 350 automatic corrugators and more than 10,000 semi-automatic units across the country and the segment generates direct employment for about 4,00,000 people.

The corrugated industry said the unprecedented steep escalation of price of Kraft Paper by the paper mills is the major hurdle while consuming industries are not willing to pass on the cost making their business unviable. The prices of both domestic and imported waste paper prices have gone up by Rs 4,500-5,000 per tonne in the last couple of months.

China has proposed a ban of waste paper imports from January 2021 and as a result, the Chinese paper mills are stocking up the waste paper supplies available in overseas markets. Both China and India import their waste paper primarily from the USA and Europe for kraft paper manufacturing.

However, Federation of Corrugated Box Mfrs of India president (elect) Milan Kumar Dey questioned the role of paper mills for raising price sharper than their raw material supply disruptions. "Though mills had been claiming that there is an acute shortage of pulp due to poor collection of waste paper in Europe and the USA due to Covid leading to rise in cost of waste paper," he said.

However, the mills are not providing the import data over a medium term questioning their claim. While the price of domestic waste has increased only by Rs 2-3 per kg. It is a real question why prices of Kraft paper raised so much and so rapidly, Dey said..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....

Videos

Latest News

Mainland China reports 80 new COVID-19 cases vs 107 a day earlier

Mainland China reported 80 new COVID-19 cases on Jan. 23, down from 107 cases a day earlier, the countrys national health authority said on Sunday.The National Health Commission, in a statement, said 65 of the new cases were local infection...

Magnitude 5.6 earthquake hits Chile-Argentina border region – GFZ

An earthquake of magnitude 5.6 struck the Chile-Argentina border region, the GFZ German Research Center for Geosciences said on Saturday.The quake was at a depth of 133 km, it added. ...

New Zealand health officials probe probable community COVID-19 case

New Zealand health officials said on Sunday they were investigating a probable community coronavirus case, the countrys first in months.New Zealand, one of the most successful developed nations in controlling the spread of the pandemic, las...

UK's Johnson says he looks forward to working with Biden on shared goals

British Prime Minister Boris Johnson said on Saturday he looked forward to working with U.S. President Joe Biden on their shared goals, including tackling climate change.Johnson used his first phone call with the U.S. president to welcome B...

Give Feedback