Imports of paper and paperboard surge in India

CHENNAI: Imports of paper and paperboard into India have surged to an all-time high, reaching 1.76 million tonne during the April-December 2024-25 period, registering a steep 20% year-on-year (YoY) increase in volume terms, states Indian Paper Manufacturers Association (IPMA) quoting latest data released by the department of commerce, Government of India.
These imports are valued at Rs 11,196 crore ($ 1.3 billion), marking the first time that paper and paperboard imports have crossed the Rs 10,000 crore mark within a nine-month period.
A significant contributor to this surge is the 36% increase in imports from China and a 23% increase from ASEAN in volume terms, said IPMA.
“Capacity utilisation levels in the industry remain suboptimal, and industry margins are under severe strain. The continued influx of imports, despite adequate domestic supply capabilities, is deeply concerning,” said Pawan Agarwal, president IPMA.
India remains the fastest-growing paper market in the world, yet the domestic manufacturing sector is struggling since the rising demand is being increasingly met by imports. “This paradox - where demand is growing while domestic manufacturing suffers - is a rare and alarming situation,” Agarwal added.
The surge in imports of virgin fibre paperboard has more than tripled since 2020-21. The landed price of these imports, especially from China and Indonesia, is significantly lower than the domestic production cost, and in many cases even lower than global pulp costs.
Continued surge in imports has significantly dented the commercial viability of Indian paper mills and will discourage further investment by domestic industry. This will lead to loss of employment opportunities, apart from depriving lakhs of farmers of their income from wood supply to paper mills, IPMA has stated.