Surge in global pulp and paper prices prompts major Indian paper mills to increase domestic paper prices

Paper prices in India are currently on an upward trend due to a sharp rise in costs associated with raw materials, transportation and other operational necessities. This growth was primarily driven by rising prices for hardwood pulp and waste paper.

Major companies in the industry such as JK Paper, APP, Bindal Papers and Khanna Paper were forced to issue notices announcing price increases. Although there are certain differences in price increases, the average increase is around 1,500 rupees/ton of paper.

JK Paper emphasized that the cost of important raw materials such as pulp and wood has soared abnormally, which is further exacerbated by geopolitical tensions affecting global trade routes, especially in the Red Sea region. These factors have resulted in a significant increase in freight costs, putting considerable financial pressure on the company. Although the company attempts to absorb some of the costs internally, JK Paper has found it necessary to pass on some of the price increases to consumers to maintain product sustainability.

JK Paper stated that product varieties such as cup paper, FBB and office paper are expected to further adjust prices. Ongoing adverse market conditions, lasting longer than expected, continue to erode long-term value and compress industry margins.

Although major players have been urging their respective partners to develop strategic implementation plans to reduce the urgency of paper price increases, there is currently no other way to sustain them.

Well-run pulp and paper mills that produce high-quality paper and packaging board are working hard to protect profits and improve operating performance, experts say.