Govt Raises Print Ad Rates by 26% to Strengthen Revenue & Media Ecosystem

Formed on 11 November 2021, the 9th RSC, chaired by the AS&FA (I&B), engaged in a detailed review process that spanned nearly two years—from November 2021 to August 2023.

 

The Government of India has announced a significant 26% increase in advertisement rates for print media, marking the first major upward revision since 2019. The decision comes after extensive review and deliberation by the 9th Rate Structure Committee (RSC), which evaluated the rising operational costs faced by newspapers across the country. The move is expected to provide a substantial financial boost to the print media sector, helping sustain journalism and reinforce the overall media ecosystem.

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Revised Advertisement Rates to Support Rising Costs

Under the new structure, the rate for black-and-white advertisements in dailies with a circulation of one lakh copies has been enhanced from ₹47.40 to ₹59.68 per sq. cm, reflecting a 26% increase. The Government has also accepted the Committee’s recommendations for premium rates, including:

• Colour advertisements

• Preferential positioning (front page, specific placement, etc.)

These adjustments acknowledge the growth in cost factors affecting print media and aim to bring government advertisement rates closer to current market realities.

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Role of the Central Bureau of Communication

The Central Bureau of Communication (CBC) — the nodal agency under the Ministry of Information and Broadcasting (I&B) for government publicity — is responsible for placing advertisements across multiple media channels, including newspapers empanelled with CBC.

Government advertisement rates for print media were last revised on 9 January 2019, based on recommendations from the 8th Rate Structure Committee, and were valid for three years. Since then, the print sector has faced substantial operational challenges due to:

• Rising cost of imported and domestic newsprint

• Increased labour and processing expenses

• Competition from rapidly expanding digital media

• Declining advertisement revenue during and after the pandemic

The new revision addresses these long-pending concerns.

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The 9th Rate Structure Committee: A Comprehensive Review

Formed on 11 November 2021, the 9th RSC, chaired by the AS&FA (I&B), engaged in a detailed review process that spanned nearly two years—from November 2021 to August 2023.

The Committee considered representations from:

• Indian Newspaper Society (INS)

• All India Small Newspapers Association (AISNA)

• Small-Medium-Big Newspapers Society (SMBNS)

• Other regional and industry stakeholders

Key parameters evaluated included:

• Wholesale Price Index (WPI) inflation for newsprint

• Rising wages and labour costs

• Imported newsprint price trends

• Processing and production costs

• Broader media consumption trends and market shifts

After extensive analysis, the Committee submitted its final recommendations on 23 September 2023.

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Strengthening the Print Media Ecosystem

The upward revision in advertisement rates is expected to bring multiple benefits to the print sector, particularly at a time when traditional media is facing intense financial pressure.

1. Essential Revenue Boost

Higher advertisement rates will help newspapers—especially small and medium publications—manage escalating costs. This support is crucial for sustaining:

• Regional journalism

• Rural reporting

• Local news operations

• Community-focused publications

2. Ensuring Quality Journalism

With better financial stability, print media organisations can invest more in:

• Investigative reporting

• Fact-checking systems

• Skilled journalists and editorial staff

• Enhanced printing and distribution infrastructure

3. Strengthening Media Diversification

Amid a growing digital landscape, the government’s decision reinforces the continuing relevance of print media. By supporting print outlets, the government ensures a diversified and balanced media ecosystem, where messaging and public communication reach citizens across various formats.

4. Improved Communication Outreach

The revision allows the government to better target its communication strategies by leveraging:

• Print media’s deep penetration in rural and semi-urban areas

• Its credibility among older and underserved populations

• Its ability to complement digital platforms

This approach enhances the efficiency and reach of government campaigns.

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A Timely and Strategic Decision

The revision of advertisement rates arrives at a crucial time when print media is navigating economic stress, digital disruption, and rising input costs. By acknowledging these challenges and providing structural support, the Government of India has taken a significant step toward:

• Preserving the viability of news organisations

• Strengthening democratic information systems

• Supporting regional languages and local publishing industries

• Promoting balanced media narratives

The latest rate hike marks a renewed commitment to the sustainability and vitality of India’s print media sector, ensuring that it continues to play its vital role in public communication, transparency, and nation-building.