Corrugated Box Industry in Distress over Rising Kraft Paper Prices and Supply Disruptions
29 September 2020
Kraft Paper Mills are citing the most important reasons behind these hikes are –
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