Powered by: Motilal Oswal
23-05-2024 11:52 AM | Source: Accord Fintech
Imports of paper and paperboard rise by 34% to 19.3 lakh tonnes in FY24: IPMA

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel

The Indian Paper Manufacturers Association (IPMA) has said that imports of paper and paperboard in the country rose by 34 per cent to 19.3 lakh tonnes in 2023-24, driven by higher shipments from ASEAN countries. In value terms, paper imports doubled to Rs 13,248 crore in FY24 from Rs 6,140 crore in FY21. It said the increasing imports of these products are hurting the domestic industry. It noted that paper and paperboard imports, as per the commerce ministry data, were 14.3 lakh tonnes in the financial year ended on March 31, 2023. 

The IPMA has said that Association of Southeast Asian Nations (ASEAN) has come to account for the largest chunk in the paper import pie in the country accounting for 27 per cent share. Paper imports from ASEAN, which enter the country at zero import duty under the ASEAN-India free trade agreement, doubled to 5.1 lakh tonnes during the year from 2.7 lakh tonnes in FY23. The ASEAN is a 10-member bloc. The members include Singapore, Thailand, Cambodia and Laos. 

The association said the unprecedented imports of paper and paperboard pose a significant threat to India's Make-in-India initiative Aatmanirbhar Bharat. The major paper grades which are coming from these nations include printing paper, coated paper, and paperboard. IPMA said that this surge comes despite substantial investments by the domestic industry in recent years to upgrade technology, improve product quality, and enhance agro / farm forestry practices. It claimed that these investments are now at risk due to the influx of duty-free imports. It has urged the government to increase the basic customs duty (BCD) on the import of paper and paperboard from 10 per cent to 25 per cent.