Mumbai, Mar 11 (PTI) The corrugated box industry on Thursday urged the government to put a cap on the exports of kraft pulp rolls that will help in availability of raw materials in the country and control the surge in prices.

The industry is reeling under the twin blows of sharp rise in raw material as well as disruptions in its supply, Indian Corrugated Case Manufacturers' Association (ICCMA) President Sandeep Wadhwa told PTI here.

"The exports of kraft paper from India to China have surged as the country has banned import on waste paper from January 1, 2021, in the form of 'Recycled  Kraft Paper Pulp Rolls'. This has created a huge shortage of raw material for the domestic corrugated industry," he noted.

He said there is a need for the government to step in and put a cap on exports as the domestic corrugated industry, that gives employment to over 6 lakh people, is on the verge of closure, he stated.

"The demand gap and attractive pricing in China is diverting the output of Indian kraft paper from the domestic market and driving up the prices of finished paper and recycled fibre. Exports of recycled kraft paper pulp rolls by Indian kraft paper mills would touch about 2 million tonne this year, roughly 20 per cent of total domestic kraft paper production in India," Wadhwa said.

He added that this development, on the base of zero export prior to 2018, is game-changer in supply-side dynamics going forward.

In addition to the increase in the costs of kraft paper, he said other input costs like man-power costs, starch and freight have also witnessed a huge increase by 60-70 per cent over the past few years, it added.

"China's burgeoning demand for kraft pulp rolls is pushing at least 20 per cent Indian box makers on the brink of closure," he added.

The corrugated box industry in India has over 350 automatic corrugators and more than 10,000 semi-automatic units, mostly in the MSME sector.

Wadhwa further stated that the corrugated box industry's healthy growth is vital not only to keep all manufactured goods supplied with sustainable packaging but also essential for furthering our Prime Minister Narendra Modi's dream of 'Make in India'.

"We, therefore, appeal to all box users, including large brand owners and other corporates, to... (grant) fair price revisions to cover the increase in raw material and conversion costs and ensure the industry avoids imminent closure," he added. HRS hrs hrs

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)