Paper prices surge in India

Furthermore, claims that LPG supply shortages significantly affect production costs have not been widely substantiated by actual supply disruptions. While global factors were cited, their direct cost impact on the domestic manufacturing sector appears limited.

The price escalation is placing significant financial strain on sectors that rely heavily on paper, including printing presses, packaging units, publishers, and media houses. These stakeholders are now demanding an immediate review of the sudden price hike, which directly affects the cost of essential printed materials like newspapers and books.

Adding to the complexity, the domestic market is experiencing a surplus supply. This is due to a halt in the export of packing grades and a reduction in local paper consumption by the food industry, reportedly caused by the LPG shortage. This market scenario, which typically suggests downward price pressure, further complicates the mills' justification for the current price increases.

The domestic turmoil is set against a backdrop of strengthening global paper prices. European mills have announced fresh price increases of approximately 4–8% across packaging, coated, and uncoated grades, driven by sustained high pulp and energy costs. Market forecasts indicate steady value growth in paper bags and packaging through 2030+, supporting a firm pricing environment in the medium term.

As European prices strengthen, India can position itself as a competitive supply partner — particularly in kraft paper, paper rolls, and packaging grades. With ongoing India-EU trade discussions and increasing European focus on sustainability compliance, exporters aligned with FSC standards, quality benchmarks, and regulatory norms can capture long-term market share. This is not just a price hike; it’s a shift in global sourcing dynamics, requiring traders and import-export businesses to reassess contracts and diversify supply bases for 2026.

The recent coordinated price movements follow a period of strategic alignment among India's leading paper manufacturers. Six months ago, as reported in PrintWeek, the major players — including JK Paper, West Coast Paper Mills, and Emami Paper — had announced synchronised price hikes of INR 1,500-INR 3,150/MT between May and August 2025 to counter soaring input costs and currency volatility. 

Despite recent quarters seeing margins dip, the sector has been poised for a robust margin recovery, backed by domestic plantation output and government policy like the Minimum Import Price (MIP) and anti-dumping measures. Integrated players, focused on backward integration and smart capacity upgrades, have been driving resilience, positioning the industry for a margin revival in the lead-up to 2026.