News of the central government imposing a minimum import price (MIP) on virgin multi-layer paper board (VMPB) – a move aimed at curbing cheaper imports and protecting domestic producers – led to a surge in paper stocks in early trade on Monday, 25 July.
Stocks of paper companies rose as much as 17% with JK Paper jumping 15% to Rs 401, Tamil Nadu Newsprint & Papers rising 16.6% to Rs 179.15, and West Coast Paper Mills 14.3% to Rs 553.45, the financial press reported. Andhra Paper gained 11% to Rs 82.21 while Orient Paper and Ruchira Paper added 6-10%, ET reported.
Virgin multi-layer paper board is widely used in packaging for pharmaceuticals, FMCG, food and beverages, electronics, cosmetics, liquor, and also in publishing.
News reports said the directorate general of foreign trade (DGFT), under the ministry of commerce & industry, tightened import conditions for certain paper and paperboard products by amending the Import Policy under Chapter 48 of ITC HS, 2022.
In the notification, the DGFT said the MIP will remain in force till 31 March, 2026 – a move that makes foreign supplies costlier, providing relief to domestic producers.
According to an ANI report, the August 22 notification issued by DGFT says the import of VMPB under HS Codes 48059100, 48059200, 48059300, 48109200, and 48109900 will now be subject to a MIP of ₹67,220 per metric ton on a cost, insurance, and freight (CIF) basis.
Indian companies had been complaining of unfair competition because of cheap imports from Indonesia, China and other countries.
Indian Printer & Publisher had written how the Indian Paper Manufacturers Association (IPMA) had express concern over paper and paperboard imports in India doubling over the past four years, reaching a record 2.05 million tons in FY25 compared to 1.08 million tons in FY21.
“The relentless surge in paper imports is a matter of grave concern for the domestic industry, which has invested substantially in capacity building and sustainability initiatives. The influx of predatory imports, especially from countries such as China and Indonesia, has been eroding the competitiveness of the domestic manufacturers, leading to underutilization of installed capacities,” Pawan Agarwal, president IPMA, had stated.
The association had in June sought an anti-dumping probe against imports of VMPB from Indonesia. The minimum floor price is expected to shift domestic demand toward Indian companies.
