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Paper industry gains from the educational sector, expects unchanged trade policies in budget 2012

14 March 2012

M B S Nair, the president of the Indian Pulp and Paper Technical Association is upbeat about government projects such as Sarva Shiksha Abhiyan and national literacy mission which are going to bring in great profits rolling into the paper industry.

paper

"The rise in the literacy rate and the standard of living is going to be an impetus for the growth in the paper sector. India’s consumption of paper is going to reach a peak of 17 million tonnes over the next five years, from the present 12 million tonnes. The launch of new magazines and introduction of robust printing machines will only further facilitate the growth," said Nair

In the Indian market, consumption of paper is dominated by the packaging sector with paper board accounting to 45 per cent of the total paper consumed, followed by writing and printing segment at 35 per cent, newsprint at 16 per cent and specialty paper at a meager four per cent. 

The Indian paper industry thrives on raw materials such as wood and bamboo which consists of 31 per cent and 47 per cent is acquired from recycled waste papers.

In the light of this, the paper industry hopes that the government does not amend the import-export policy during this budget session. The paper industry is set to face stiff competition from countries like China.

The export market for India is relatively safe with a capacity of around 100,000 to around 250,000 tonnes a year. However, in the import sector the situation is different. India imports approximately 1.6 million tonnes of paper and one million tonne of this is newsprint paper.

Paper manufacturers in China see India as a profitable alternative to US and Europe. The coated paper segment is gaining in this regard with imports growing at a rapid pace.

 

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