Paper Trail: IPMA flags record import of paper, paperboard

According to reports by leading business portals, the Indian Paper Manufacturers Association (IPMA) has stated that paper and paperboard imports into India surged by 20% to 1.76-million tonnes during the April-December period of 2024-25. IPMA cited the Department of Commerce as its source.

This marks a significant increase in volume and value, with imports valued at INR 11,196-crore (USD 1.3-billion)—crossing INR 10,000-crore for the first time in nine months.

The surge is largely attributed to a 36% increase in imports from China and a 23% rise from ASEAN countries. These increases are exacerbating the challenges faced by India's domestic paper manufacturers.

Despite India being the fastest-growing paper market globally, the increasing reliance on imports is putting a strain on the local manufacturing sector, which is struggling to keep up with the rising demand.

One of the most affected areas is virgin fibre paperboard, a crucial growth driver for the industry. Imports of virgin fibre paperboard have more than tripled since 2020-21, and the landed prices of these imports, particularly from China and Indonesia, are significantly lower than domestic production costs, often even below global pulp costs.

The influx of cheaper imports has strained the financial viability of Indian paper mills, limiting their capacity utilisation and diminishing profit margins. This trend threatens to stifle investment in the domestic industry, jeopardising job opportunities and the livelihoods of thousands of farmers who supply wood to paper mills.

In light of these challenges, the IPMA has called for urgent government policy interventions to curb predatory imports and ensure a level playing field for Indian manufacturers in the domestic market.