India's Paper Industry Faces Challenges Amidst Import Surge And Environmental Concerns

(MENAFN- KNN India) New Delhi, May 31 (KNN) India's paper and paperboard industry is navigating a complex landscape marked by rising imports, environmental activism, and strategic investments.

According to the Indian Paper Manufacturers Association (IPMA), imports of paper and paperboard surged by 20% to 1.76 million tonnes between April and December 2024, reaching a value of ₹11,196 crore.

This increase is largely attributed to a 36% rise in imports from China and a 23% uptick from ASEAN countries.

The influx of cheaper imports, often priced below domestic production costs, has strained local manufacturers, leading to underutilised capacities and financial pressures.

In response, domestic producers are investing ₹25,000 crore in capacity expansion and technological upgrades, aiming to add one million tonnes to existing capacity.

These investments also focus on sustainability, with ₹5,000 crore allocated for eco-friendly technologies to reduce carbon footprints.

Environmental concerns have also come to the forefront. In Punjab, residents from approximately 50 villages opposed the establishment of a proposed paper mill in an ecologically sensitive area near Chamkaur Sahib.

At a public hearing on April 30, 2025, 853 out of 873 attendees voiced their opposition, citing potential pollution risks to nearby water sources like the Buddha Dariya and Neelon Canal.

These water bodies are crucial for regional drinking water and have been linked to health issues in the area.

Despite these challenges, India's paper market remains robust, with domestic consumption of packaging paper and paperboard growing at 8.2% in 2023-24.

Factors such as increased demand for quality packaging in FMCG, pharmaceuticals, and e-commerce, along with the ban on single-use plastics, are driving this growth.

As the industry grapples with external pressures and internal reforms, the coming years will be pivotal in determining its trajectory amidst global competition and environmental sustainability efforts.

(KNN Bureau)

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