Unprecedented Surge in Paper and Paperboard Imports

India has witnessed an unprecedented surge in the imports of paper and paperboard, reaching a staggering 1.76 million tonnes during the April-December 2024-25 period. This marks a 20% year-on-year increase in volume, as reported by the Indian Paper Manufacturers Association (IPMA) based on the latest data from the Department of Commerce, Government of India.

Economic Impact and Industry Concerns

The value of these imports stood at Rs 11,196 crore ($1.3 billion), crossing the Rs 10,000 crore mark for the first time in a nine-month span. A significant portion of this surge is attributed to a 36% increase in imports from China and a 23% rise from ASEAN countries. Pawan Agarwal, president of IPMA, expressed deep concern over the continued influx of imports despite adequate domestic supply capabilities, which is straining industry margins and capacity utilization levels.

The Paradox of Growing Demand and Struggling Domestic Manufacturing

Despite being the fastest-growing paper market globally, India's domestic manufacturing sector is under severe strain. The paradox of growing demand being increasingly met by imports, while domestic manufacturing suffers, is alarming. The surge in imports of virgin fibre paperboard has more than tripled since 2020-21, with landed prices from China and Indonesia significantly undercutting domestic production costs and even global pulp prices in some cases.

Future Implications

This trend poses a significant threat to the commercial viability of Indian paper mills, discouraging further investment by the domestic industry. The IPMA warns of potential job losses and adverse impacts on farmers supplying wood to paper mills, highlighting the need for strategic interventions to safeguard the interests of the domestic paper industry and its stakeholders.