Paper imports continue to surge even as domestic paper manufacturers limp back to restart production after the Covid outbreak.
In a communication to the government, the Indian Paper Manufacturers Association said both inward and outward supply chains of the paper industry have been totally disrupted and are yet to recover fully.
Taking advantage of the situation, import of paper has been rising steadily, it said.
The domestic paper industry is operating under challenging conditions post-Covid. Amid a sharp fall in demand, substantial quantities of paper are imported at significantly lower costs from countries such as China.
Paper imports have risen 2 per cent to ₹1,870 crore (₹1,830 crore) in the first 11 months of FY20. Even after the Covid outbreak there in November, China has managed to export paper worth ₹1,773 crore (₹1,831 crore) to India.
AS Mehta, President, IPMA, said countries such as China and Indonesia, which have significant excess domestic production capacity, are using the opportunity to push their excess inventory into India at very low prices, which attract either nil import duty under the India-ASEAN FTA or a preferential import duty under the Asia-Pacific Trade Agreement.
This is further impacting the economic viability of Indian paper mills, which are already under stress. The development will not only lead to a revenue loss for the Government, but also jeopardise the incomes and employment of thousands, including farmers, who are engaged in agro-forestry and supply wood to the paper industry, he added.
IPMA has urged the Government to increase the basic customs duty to 25 per cent from 10 per cent and placed paper in the Negative List in all existing and future FTAs.
Import of paper should be allowed only on the basis of Actual User License so that only genuine users import the right quantity of paper for their consumption. it said.
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.
Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.
In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.
We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.
A little help from you can make a huge difference to the cause of quality journalism!
Support Quality Journalism