Domestic newsprint supply falters even as demand holds steady

Speaking to the media, Indian Newspaper Society (INS) president Vivek Gupta said, “Indian newsprint mills can meet only about 40% of total demand. India’s annual newsprint requirement is around 1.2-mt, while domestic production has struggled to cross 0.5-mt.” He noted that the significant shortfall highlights the structural challenges faced by the country’s newspaper industry.

The gap is longstanding. For more than two decades, India has struggled to expand dedicated newsprint manufacturing capacity, even as the newspaper industry continues to grow in select markets. For publishers, this imbalance has translated into rising procurement costs and supply uncertainties.

Newspaper houses are increasingly dependent on imports from Canada, Russia, and parts of Europe and Southeast Asia. This reliance has exposed publishers to global price volatility and supply chain disruptions, especially during periods of geopolitical and logistical instability.

Domestic manufacturers are also grappling with mounting operational and financial pressures. Rising raw material costs, fluctuating pulp prices, and weak realisation rates have eroded margins for local mills. Several producers have reported declining revenues and widening losses, underscoring the difficult economics of newsprint manufacturing in India.

Raw material availability remains a critical bottleneck. Newsprint production depends heavily on recycled fibre and imported pulp, both of which have experienced supply volatility in recent years. Increasing energy costs and tighter environmental compliance requirements have further raised production expenses, challenging the sustainability of domestic operations.

Price volatility continues to weigh heavily on publishers. Sharp fluctuations in newsprint prices have forced many to revisit cover prices, optimise pagination, or rationalise print runs. Industry bodies have repeatedly sought policy intervention, including import duty relief and incentives to strengthen domestic production.

Despite these challenges, demand fundamentals for newsprint in India remain relatively strong compared to mature global markets. While print readership is declining in developed economies, India’s newspaper industry continues to expand in tier-II and tier-III cities, supported by regional language publications, strong reader loyalty, and affordable cover prices.

Going forward, industry observers believe investments in modern manufacturing technologies, improved fibre recovery systems, and supportive recycling infrastructure will be crucial in reducing import dependence and ensuring long-term sector sustainability.