Chennai: The Corrugated Box Industry is reeling under the twin blows of sharp cost increases in a short span of few months’ time and raw material supply disruptions.
The total cost increase, box makers said, has already crossed 70 per cent cumulatively on account of paper alone and the increase is unrelenting, they added.
“The industry is bleeding on account of unprecedented hikes in the cost of its main raw material – Kraft Paper. Mills cite the rising prices of imported and domestic waste paper on the supply side post CoVid-19 pandemic lockdowns and international logistics disruptions for the reduced availability.”
Sandeep Wadhwa, president, Indian Corrugated Case Manufacturers Association (ICCMA), stated that 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.