Corrugated Box Industry in Distress over Rising Kraft Paper Prices and Supply Disruptions
|
|
|
|
|
|
|
|
|
|
Date: 29-09-2020 9:30AM Source: Indian Corrugated Case Manufacturers' Association Category: General, Consumer Interest, Economy, Environment, Govt. & Public Policy, Human Resources & Consultancy Services, Natural Resources/ Forest Products, Social Issues, Healthcare & Biotechnology, Business Services, Heavy Industries, Manufacturing Companies Location: Mumbai, Maharashtra, India
Business Wire IndiaThe Corrugated Box Industry is reeling under the twin blows - 4 massive Price Increases in a short span of two months on one hand by Kraft Paper Mills & cascading hikes in other Conversion Input Costs on the other hand over the years. The Industry is staring at huge losses on account of these hikes during COVID Pandemic.
Kraft Paper Mills are citing the most important reasons behind these hikes are – - Both domestic and Imported waste paper prices are up by Rs. 4500-5000 pmt in last couple of months during COVID Pandemic.
- Both China and India import their Waste paper primarily from USA and Europe. As China has proposed ban of Waste Paper Imports from any country with effect from 1st January 2021, Chinese Paper mills are lapping up whatever supplies available in overseas markets before ban becomes effective. This extra demand has pushed up the prices of Imported Waste paper.
- Kraft Paper mills are indicating that, even post-Chinese ban, waste cuttings prices would remain at elevated levels in the foreseeable future for various reasons.
- Lockdowns all over the globe due to COVID have dented the generation & collection of waste and scarcity in supplies.
- Indian Paper Mills could not import adequate volumes during COVID lockdown periods resulting in lower inventory of required grades and shortage in some lower grades at this point of time.
Mr. Sandeep Wadhwa – President, Indian Corrugated Case Manufacturers' Association (ICCMA), a PAN India body, request all the Kraft Paper Mills Associations to bring stability in prices & to ensure that supply chains are not hampered during the recovery phase of the Indian economy. The Industry growth is of vital importance to our honourable Prime Minister’s cherished dream of MAKE IN INDIA. The support of all Kraft Paper Mills as well as our valuable clients is very crucial to achieve that mission.
In addition to the increase in the costs of Kraft Paper, all other inputs namely Man-power costs, Starch, Freight & other Overheads have also witnessed a huge increase in the range of 60%-70% over last few years. Corrugated Box Industry in the country with 350+ Automatic Corrugators & more than 10,000 Semi-automatic Units are facing immense stress on account of these hikes on top of the recent lockdowns caused by COVID pandemic. This Industry is employing over 6 Lakhs workforce and is playing a pivotal role in the Indian Economy by maintaining supply chains of essential public consumption items at all times & more importantly during the current challenging times. The Industry produces about 6 million tons of production with a total market size of Rs. 24,000 crores p.a. and uses 100% recyclable & environment-friendly inputs. Mr. Harish Madan, Vice President of ICCMA, stated that unless the Box users including large FMCG Brand Owners support the Industry which is facing the abnormal costs hikes in the range of 18%-20%, the survival of the Industry would be at stake.
www.iccma.com
|
More Press Releases C3.ai Digital Transformation Institute Announces AI for Energy and Climate Security Grantees Moody’s Launches Moody’s Moments Video Series Providing Insight into Corporate Strategy IDEMIA Signs With Storstockholms Lokaltrafik “SL” to Launch the World’s First Ever Public Transport EMV White Label Cards Celebrity Face: India's No.1 Platform for Aspiring Content Creators and Fans to Photoshoot with Top Celebrities Tally Solutions Announces the First Edition of MSME Honours Sourced from the Himalayan Regions, Moving to the Wonders of Australia - BOHECO Joins Hands with Spring Sciences Australia Moneycontrol App's Monthly Active Users Six Times Larger Than Its Closest Competitor for May 2021 - Similarweb Healthcare Cloud Unicorn, Innovaccer, Certified as a Great Place to Work® Company The Nation Gears up for the First-ever Edition of National Poker Series, India DXC Technology Welcomes Brenda Tsai as Chief Marketing and Communications Officer Schlumberger New Energy and Panasonic Energy of North America Announce Strategic Collaboration on New Battery-Grade Lithium Production Process Fashion Designer Sanjukta Dutta Contributes Towards the Vaccination Drive Held in Assam Under the Guidance of Honorable Chief Minister Dr. Hemanta Biswa Sarma Western Union Accelerates Digital Money Movement for Postal Networks Worldwide NMIMS School of Branding and Advertising Partners with 120 Media Collective and Advertising Standards Council of India High-Touch Spectacles Now Made Virus Free by ZEISS DuraVision AntiVirus Platinum UV IRM India Affiliate Announces Results for May 2021 Level-1 Examination Wipro Annual Report 2021 on Form 20-F Available Online for ADS Holders RSA Introduces Outseer, a Spinout of its Fraud & Risk Intelligence Unit, to Transform Customer Authentication and Accelerate Revenue for the Digital Economy Abu Dhabi Based Tablez to Expand Upon Investment in India’s Toys Sector With Its Proprietary Brand
|