Paper Industry In Woods

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Tribulations for SMEs in the Indian paper industry seem to continue unabated. Earlier, it was sluggish demand and stiff competition from Chinese imports that depleted the profit margins of small-scale paper mills. While recessionary pressures daunted the spirit of SME paper and paper board manufacturers during the global economic slowdown, currently they are perturbed by high input costs.

Call for govt support

Steep increase in the cost of chief raw materials such as waste paper and baggasee used for paper manufacturing, is pushing up the overall cost of production for SME paper units. This, in turn, is also compelling some small-scale paper mill owners to pass the high input costs on to their customers, thereby posing a threat to their sustenance and competitiveness.

Speaking at a press conference held in New Delhi, Pramod Agarwal, president of Indian Agro and Recycled Paper Mills Association (IARPMA) stated, With input costs surging by more than 100% in the recent times, it has become difficult for SME paper units that survive on paper-thin margins to stay afloat. To resolve the cost concern, the government needs to extend adequate support to the domestic paper sector.

Besides, variance in the imposition of Countervailing Duty (CVD) on imported waste paper as well as finished paper is also hurting the Indian paper sector. Although, the excise duty on finished paper is 4%, waste paper comes at the CVD of 10%.

Anomaly in the duty structure on imported waste paper and finished paper is a cause of concern for small-scale paper units, which have to rely on imported wood pulp and waste paper in order to meet their raw material requirements, said Kanti Sikdar, spokesperson of Lakshmi Paper Mills, a small-sized paper mill in Kolkata.

The IARPMA president has sought government support with regard to removing anomalies in the duty structure and has also demanded assistance for technological upgradation of SME paper units.

About the Author:
David Parks is a well known author and has written articles on Buy Trade Leads and Online Directory, suppliers, Manufactures and many other subjects.



Article Originally Published On: http://www.articlesnatch.com


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