After 25% growth in FY23 in terms of volumes, India’s paper Data released by DGCI&S shows that there has been a massive increase of 43% in imports in the first half of FY 2024. The huge increase in imports is mainly due to? giant 257% increase in paper imports and paperboard from ASEAN, which enters the country at zero import duty under the ASEAN-India Free Trade Agreement, a statement from the Indian Paper Manufacturers Association said (IPMA,
Import of paper and paperboard in the first half of FY 2024 has increased to 959 thousand tonnes as compared to 672 thousand tonnes in the first half of FY 2023. Imports from ASEAN increased from 81 thousand tonnes in H1FY23 to 288 thousand tonnes in H1FY24. While imports of all grades of paper have increased rapidly, imports of uncoated writing and printing paper have seen a growth of 267% in volume terms in H1FY24 compared to H1FY23 .
Even in value terms, imports of paper and paperboard have increased by 10% in H1FY24. “Despite adequate domestic capacity to produce almost all grades of paper, paper worth Rs 6,481 crore came into India in the first half of the current financial year,” IPMA said.
Even though the industry is grappling with the issue of producing paper and paperboard at competitive costs in view of the significant increase in raw material and input costs, the industry is affected by preferential tariff treatment for paper and paperboard imports under various free trade agreements (FTAs). . ) signed in the past, said IPMA President Pawan Aggarwal.
Apart from zero import duty on paper under the ASEAN and Korean FTAs, India has also extended import duty concessions by offering 30% preference margin to China (and other countries) under the Asia Pacific Trade Agreement (APTA), thereby increasing the basic Customs duty has reduced. 10% to 7% on most grades of paper. Taking advantage of zero/low import duty rates and growing demand for paper in the country, these countries find India an attractive outlet to offload their excess inventory, the statement said.
Going forward, imports into India are expected to pick up given the economic slowdown in China, trade sanctions and import duties imposed by the US and EU to protect their domestic markets and large new paperboard capacities coming up in Indonesia and China .
IPMA said, apart from the overall negative impact of duty-free imports on the domestic paper industry, it is making most of the small and medium paper mills in India commercially unviable. According to DPIIT, out of over 900 paper mills in the country, only 553 are currently operational.
Import of paper and paperboard in the first half of FY 2024 has increased to 959 thousand tonnes as compared to 672 thousand tonnes in the first half of FY 2023. Imports from ASEAN increased from 81 thousand tonnes in H1FY23 to 288 thousand tonnes in H1FY24. While imports of all grades of paper have increased rapidly, imports of uncoated writing and printing paper have seen a growth of 267% in volume terms in H1FY24 compared to H1FY23 .
Even in value terms, imports of paper and paperboard have increased by 10% in H1FY24. “Despite adequate domestic capacity to produce almost all grades of paper, paper worth Rs 6,481 crore came into India in the first half of the current financial year,” IPMA said.
Even though the industry is grappling with the issue of producing paper and paperboard at competitive costs in view of the significant increase in raw material and input costs, the industry is affected by preferential tariff treatment for paper and paperboard imports under various free trade agreements (FTAs). . ) signed in the past, said IPMA President Pawan Aggarwal.
Apart from zero import duty on paper under the ASEAN and Korean FTAs, India has also extended import duty concessions by offering 30% preference margin to China (and other countries) under the Asia Pacific Trade Agreement (APTA), thereby increasing the basic Customs duty has reduced. 10% to 7% on most grades of paper. Taking advantage of zero/low import duty rates and growing demand for paper in the country, these countries find India an attractive outlet to offload their excess inventory, the statement said.
Going forward, imports into India are expected to pick up given the economic slowdown in China, trade sanctions and import duties imposed by the US and EU to protect their domestic markets and large new paperboard capacities coming up in Indonesia and China .
IPMA said, apart from the overall negative impact of duty-free imports on the domestic paper industry, it is making most of the small and medium paper mills in India commercially unviable. According to DPIIT, out of over 900 paper mills in the country, only 553 are currently operational.
(TagstoTranslate)Paperboard(T)Paper(T)IPMA(T)Humongous(T)EU(T)ASEAN