Paper stocks soar as government imposes minimum import price on packaging material
Shares of Indian paper companies witnessed a significant rally, with stocks surging up to 17% in early trade, following the government's decision to impose a minimum import price (MIP) on virgin multi-layer paper board (VMPB). This move, aimed at curbing cheaper imports and supporting domestic manufacturers, has ignited hopes of increased sales volumes for local players.
26 Aug 2025 | 300 Views | By PrintWeek Team
The Directorate General of Foreign Trade (DGFT) issued a notification stating that the MIP on VMPB will remain in effect until 31 March 2026.
The DGFT notification dated 22 August 2025 imposes an MIP of INR 67,220 per MT (CIF basis) for virgin multi-layer paper board (VPB) falling under HS Codes 48059100, 48059200, 48059300, 48109200, and 48109900. The import of stock lots of these papers remains prohibited.
Import of other categories is free, but subject to mandatory registration under the Paper Import Monitoring System (PIMS). However, if the CIF value of VPB is below INR 67,220/MT, such imports are classified as “Restricted” and will require specific DGFT approval.
This floor price for imports effectively makes foreign supplies costlier, providing a much-needed shield for domestic producers who have long grappled with competition from low-priced imports, particularly from Indonesia and China.
The Indian Paper Manufacturers Association had even sought an anti-dumping probe against Indonesian VMPB imports in June.
Among the top performers, Tamil Nadu Newsprint and Papers (TNPL) led the charge, building on early gains to climb 17% to an intraday high of Rs 179.90 on the NSE, recovering from two consecutive sessions of decline. JK Paper also saw a sharp ascent, rising 15% after four days of losses. Other notable gainers included West Coast Paper Mills, which jumped 13.71%, Orient Paper and Industries, up 8.16%, and Malu Paper Mills and Andhra Paper, both gaining up to 12%.
As per an industry expert, "Virgin multi-layer paper board is a crucial component in various industries, finding extensive use in packaging for pharmaceuticals, FMCG products, food and beverages, electronics, cosmetics, liquor, and even in publishing. By making cheap imports more expensive, the government's intervention is expected to encourage importers to either pay a premium for foreign paper boards or, more likely, shift their procurement towards Indian producers."
This anticipated redirection of domestic demand is seen as a significant boost for the Indian paper industry.