| Frequent price increases have been jeopardising the viability of this industry, a press release issued by Western India Corrugated Box Manufactures' Association (WICBMA) said. |
| Kraft paper mills have resorted to another price hike in the similar range across all varieties since last month. A hike was first effected in May 2005. |
| To aggravate the situation further, prices of all other critical inputs of the industry have shot up in the last couple of months. Stitching wire, adhesives, ink, power etc have gone up primarily owing to hikes in the costs of steel and other commodities. |
| "Inward and outward freight costs have gone beyond control on account of frequent diesel price revisions. The burden of service tax on goods transport is also being absorbed by our members," said Deepak Killawala, president, WICBMA, representing units in Maharashtra & Goa. |
| The cumulative impact of all these increases in costs have adversely affected the working of this industry, he said, added that industry members are facing tremendous problems with these price hikes. |
| Meanwhile, the association in Aurangabad observed a total bandh, and all its 55 units remained closed. |
| Traders claimed that it was the second time since April that the price of paper had risen. |
| WICBMA warned that if the government does not take a decision in a week's time, the industry will go on an indefinite strike. |
| Ram Mehta, president of the Aurangabad branch of WICBMA, said, "The only one option for the packaging units "� agitation against this latest round of hikes." |
| Shama Prasad of Times Packaging Corporation, which supplies packaging material to several multinational giants, said the packaging industry is being squeezed as a result of this hike. |
| "We have to supply to the customer as per our earlier contract and the latest round of hikes will bite into our margins," Prasad said. |
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