Raw material price hike an extra burden for printers already struggling: Rajesh G

All of us are facing hardships due to the Covid-19 pandemic since March 2020. The situation is particularly dire for print firms doing commercial printing works. By October, we saw a slight improvement mostly due to demand for the printing of calendars, diaries and cake cartons, etc, but by December, we were once again hit with another huge blow due to the increase in the cost of raw materials.

First, the market is already sluggish and sensitive due to the pandemic. In addition to this, the recent price rise of raw materials has proven to be an extra hurdle for the printing industry, especially those dealing with small and medium clients.

This section of clients is very difficult to educate and reason with about the cause of the hike in the cost of raw materials and the subsequent increase in the cost of the finished product.

Generally, two things happen when the cost of a printed product is increased. First, we lose the client since the client is reluctant to agree to the price hike for the printed product, stating that other printers are ready to execute the job at the old rate. Second, the printer himself has to absorb the hike in the cost of raw materials and is forced to supply the printed product at the old rate.

The price hike and the shortage of paper and board has given an opportunity to printers in the neighbouring states of Kerala.

As the market was not aggressive due to the Covid pandemic, the hike in the cost of printed products has also resulted in the reduction of print volume of the printed product by the clients.

During the ongoing pandemic, most of the raw materials dealers have stopped supplying materials on credit, which in turn has compelled printers to request clients to make advance or immediate payments. However, due to the increase in the cost of raw materials, the cost of printed material has also increased, but printers are forced to give credit to assure continued print orders from the clients. These aggregate the problems of the printers.

I feel, in the future, such important issues affecting the printing fraternity has to be taken up and discussed by the national and state level printing associations, plus wide publicity has to be given in all media for the benefit of the printing industry.