Ludhiana: In a big setback for the printing and packaging industry, the rates of raw material have increased manifold, causing huge problems to the manufacturers here.
According to the businessmen, a major dampener for them right now is the rising rates of kraft paper—a key component for this industry—and if the government does not take measures at the earliest to rein in its prices, the results will be disastrous for Ludhiana's printing and packaging units.
A statement from the leading body of printers and packaging businessmen, Offset Printers’ Association (OPA), reads, "Apart from the Covid-related challenges, the printing industry is now facing the twin blows of four price hikes in kraft paper in a short span of two months and substantial increases in the cost of other input … the unprecedented escalation of price of kraft paper by the paper mills is (proving to be) a major hurdle, while the consuming industries are not willing to pass on the cost and make their business unviable."
OPA president Parveen Aggarwal said, "The corrugated paper box industry is facing a crisis, as the prices of raw material have shot up by 30-35%, threatening to turn the business unviable. In addition to the increase in kraft paper prices, all other input costs such as manpower, starch, freight and other overheads have also witnessed a huge increase of 60-70% over the last few years."
Speaking on similar lines, OPA’s Amarjot Arora said, “The survival of the industry would be at stake unless the box users, including large FMCGs, partially absorb the rise in costs. It may not be practical for us to supply the material without an increase of at least 20%. On one hand, the printers are dying a slow death due to Covid, as it is not possible to run in full capacity, and on the other, this increase in raw material prices will ruin the industry if no attention is paid by the government immediately."
OPA has demanded intervention of the government in this matter and requested that the rates of kraft paper be brought down at the earliest, failing which the manufacturers of corrugated boxes and allied factories would be forced to shut down their units.