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The Centre is open to taking an objective look at the paper industry’s demand for safeguard duty on imports and will consider a viable model for allocating land for pulp wood plantations, said Union Minister of State for Commerce and Industry, Nirmala Sitharaman.
Addressing the AGM of the Federation of Indian Paper Traders’ Associations, the Minister said that while FTAs had opened the domestic market to imports, the industry is also benefiting from cheap import of raw materials.
On land for raising pulp wood plantations, she said paper manufacturers should talk to State governments and the Centre and come up with a model that will augment farmers’ income.
She advised the paper industry to diversify its product range, go for value addition and partner with start-ups to recover used paper for recycling.
N Gopalaratnam, Chairman, Seshasayee Paper and Boards, highlighted the environmental and socially sustainable nature of paper and its manufacturing process.
Overseas opportunitiesWhile expansion of electronic media has hit paper use in countries such as the US, there are opportunities in rapidly growing markets such as Mexico, Colombia, South Africa and Turkey, apart from India, where a growing middle class population is driving demand for paper. With well managed plantations, the industry is wood neutral and carbon neutral, he said.
Huge imports of paper following an FTA with ASEAN in 2014 have been a cause for concern. Imports have been growing at a CAGR of 40 per cent, he said. Saurabh Bangur, President, Indian Paper Manufacturers Association, said growing imports have killed the industry’s enthusiasm for investments and expansion. Paper from South East Asia is made from raw material available at less than half the cost that Indian units shell out.
The government should consider allocating at least 10 per cent of the estimated 29 million hectares of degraded forest land for paper manufacturers to raise pulp wood plantations. Securing raw material resources is critical for long-term sustainability and additional investments, he said.
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