Financial Daily from THE HINDU group of publications
Tuesday, Apr 15, 2003
Financial Daily from THE HINDU group of publications Tuesday, Apr 15, 2003 |
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Industry & Economy
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Packaging Corrugated packaging units resent high input costs Our Bureau
MUMBAI, April 14 KRAFT paper prices in the country have gone up by about Rs 4,000 a tonne or by 22 per cent on all major grades in the last two months, due to a sharp increase in the cost of major inputs such as diesel, electricity and adhesive materials. As a result, an alarming situation had arisen in the domestic corrugated packaging industry, as kraft paper was the major raw material for the industry, industry sources said. "Since January 2003, it is becoming increasingly difficult for the paper units to continue to operate even for survival," Mr Ashok Vyas, President, Federation of Corrugated Box Manufacturers of India (FCBM), told Business Line. "The total impact of these cost increases works out to nearly 18 to 22 per cent. Consequently, all the paper mills have been forced to increase their prices by about Rs 4,000 per tonne," Mr Vyas said. The association, an apex body representing the industry, has 11-member associations (having 1,300 members) from all over the country. The industry is converting over 10-lakh tonnes of paper every year into boxes and boards. Over 1-lakh people are directly employed in this industry belonging to the small-scale sector. It has been effectively and completely meeting the packaging requirements of the paper industry both for domestic needs and for exports. The industry, with an annual turnover of Rs 3,200 crore, has been adequately meeting the packaging needs by successfully substituting wooden boxes, thereby contributing to the environmental protection and ecological balance. World-over, corrugated boxes are the most preferred mode of packaging for almost all products from fruits and vegetables to computers and engineering products. Mr Vyas feared that if adequate steps were not taken, the current situation in the industry might lead to a reversal of the above trend and result in the use of alternative packaging materials, which might not be eco-friendly. It would also be against the National Policy of Conservation of Forest Resources.
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