The Indian Paper Manufacturers Association (IPMA) revealed that imports of paper and paperboards have surged by 37 percent to approximately 1.47 million tonnes during April-December of the current fiscal year, significantly impacting local paper mills.
In the corresponding period of the previous fiscal year, imports stood at around 1.07 million tonnes, according to data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S) cited by IPMA. The import volume for the entire fiscal year FY23 witnessed a 25 percent increase, reaching 1.44 million tonnes, and the April-December figures have already surpassed that mark, IPMA stated.
Pawan Agarwal, President of IPMA, expressed concern over the substantial impact of these imports, valued at Rs 10,000 crore over nine months, on the Make in India initiative and the employment of around 5 lakh farmers engaged in the domestic paper industry through agro and farm forestry.
Agarwal emphasized that India has ample domestic capacity to produce nearly all grades of paper, and the indiscriminate influx of imports is severely affecting the commercial viability of most paper mills in the country. Government data indicates that out of more than 900 paper mills, only 553 are currently operational.
The significant rise in imports is attributed mainly to a staggering 142 percent surge in imports of paper and paperboard from ASEAN nations, which enjoy zero import duty under the ASEAN-India free trade agreement, IPMA noted. Imports across all major grades of paper, including uncoated writing & printing paper, coated paper, and paperboard, are witnessing substantial growth rates.
Furthermore, IPMA highlighted that import tariff concessions to China under the Asia-Pacific Trade Agreement (APTA), along with zero duty concessions to ASEAN and Korean FTAs, have further fueled paper imports. Additionally, some of these exporting countries provide substantial subsidies to their paper mills, offering them a cost advantage over Indian paper mills.