School books to cost more as input price soars

By 25 Jan 2012

The leading paper manufacturers are set to increase the price of the paper which in turn will lead to rise in the overall cost of a school textbook.

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Paper manufacturers across the board put the blame on the rising costs of coal and other fuels to the increase in paper prices. The depreciation in the rupee to the dollar has also been attributed as a reason for the price rise.

Paper manufacturer, JK Paper has increased the price of a tonne of coated paper by Rs 1,500 and by Rs 1,000 for the high-end copier and specialty paper.

With the assembly elections to be held in various states across the country, it becomes a great scope for paper manufacturers to earn more profits.

Large paper importers such as JK Paper, Bilt, ITC and others have been helped by the slide in the rupee. The drop in the rupee value has helped them to offset the steep hike in costs. For paper exporters such as Andhra Pradesh Pulp and Paper, Bilt, Century Pulp and Paper, the fall in product prices has offset the benefit that exports should have given them.

Last year, printing and writing paper exports were $870 a tonne when rupee was valued at Rs 44 to a dollar. This year export prices are at $770 but the rupee value is Rs 52 to a dollar.


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