India’s paper and paperboard import figures have skyrocketed, doubling in volume over the past four years to reach a staggering 2.05 million tons in FY25. This significant increase, highlighted by the Department of Commerce, poses serious challenges for the domestic paper industry, as voiced by the Indian Paper Manufacturers Association (IPMA). The IPMA has expressed deep concerns over the implications of these rising import levels, which they believe undermine the growth potential of local manufacturers and jeopardise investments in capacity build-up.
The data reveals that imports have risen sharply, with a 33% jump in volume from China alone in FY25, a trend that has seen China’s share of total imports grow to 27%. Meanwhile, imports from ASEAN countries comprise an additional 20% of this total. In monetary terms, the surge has led to nearly INR 15,000 crore in imports, shining a spotlight on the increasing reliance on foreign sources in a sector with traditionally strong domestic capabilities.
The IPMA reports that paper and paperboard imports have grown at a compound annual growth rate (CAGR) exceeding 17% since FY21, marking one of the steepest growth rates among major commodities. Specifically, in the same period, imports from China have accelerated at a staggering CAGR of over 39%, while those from ASEAN have increased by more than 30%. This influx includes significant volumes of coated papers and uncoated printing papers, both of which have more than doubled in recent years.
Pawan Agarwal, the president of IPMA, emphasized the seriousness of this issue, stating, “The relentless surge in paper imports is a matter of grave concern for the domestic paper industry, which has invested substantially in capacity building and sustainability initiatives.” He cautioned that such predatory imports, particularly from countries like China and Indonesia, endanger the competitiveness of domestic manufacturers to the extent that many small and medium-sized paper mills in India risk becoming unviable. Currently, only about 550 of the 850-900 mills operating in the country are functioning, a sobering statistic that underlines the potential job losses and adverse impacts on rural livelihoods that the industry supports.
The IPMA has consistently advocated for the need for urgent government intervention to rectify what they see as structural imbalances. In response to these concerns, the IPMA urges the government to adopt stricter quality control measures and reassess trade agreements that facilitate low-duty access for imports. They call for remedial trade measures to create a more level playing field for Indian manufacturers.
Rohit Pandit, secretary general of IPMA, further highlighted the vital role of the domestic paper industry in supporting India’s circular economy and sustainability goals. He noted, “The unprecedented rise in imports threatens to derail this progress,” stressing that both employment generation and rural livelihoods intertwined with the paper value chain are at risk in this evolving landscape.
As the dynamics of the global paper market continue to shift, the imperative for policy frameworks that protect local industries has never been clearer. The Indian paper sector stands at a crossroads, facing both formidable challenges and opportunities, necessitating a coordinated response from industry stakeholders and regulatory authorities to safeguard its future.
Reference Map:
- Paragraphs 1, 2, 3, 4, 5, 6, 7: Source [1]
- Paragraph 2: Source [2], [3], [4], [5]
- Paragraph 6: Source [4], [6], [7]
Source: Noah Wire Services
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