The falling Rupee has been blamed as the prime reason for the increase in the prices of pulp. This price hike is in addition to the 15% increase recommended by OPA in February this year.

Since May 2013, cost of wood delivered at mills has increased by as much as 20%. Fibre procurement has become a huge challenge, and according to sources, the paper industry in India has started sourcing wood chips and logs from Australia, South Africa, Vietnam, Myanmar etc. A press release issued by OPA quotes Niraj Sinha, vice president of Ballarpur Industries, according to whom approximately one million metric tonnes of wood chips & logs will be imported this year by the industry to meet fibre requirement for paper making.

Reports suggest, the price increase will be effective 1 September, 2013 on all uncoated wood free grades of paper including poster and copier paper. “So with the rise in prices of inputs Printers and Packaging manufacturer have no option but to increase the price of their products,” saidGagandeep Singh (secretary, OPA). “Prices will have to be increased minimum by 15% to cover the cost of costly inputs. Price rise will take effect immediately as some paper manufacturers have already increased the prices. It has been decided by OPA that prices of sweet boxes, stationery, packaging and all other printed items shall be increased in tune of 15-20%.” Chopra also hinted that if the Rupee devaluation continues, the prices may rise further.