The Indian paper industry is demanding exemption of Customs duty and countervailing duty on import of waste paper as mills are facing inflationary pressure due to spurt in the prices of imported waste paper. “Kraft paper sector is reeling under high input costs while the paper mills of Maharashtra and Gujarat have already increased their prices of kraft paper by Rs 2,500-3,500 a tonne due to the increase in prices of raw materials,” said Vijay B Madnaik, president of Gujarat Paper Mills Association.
Indian paper mills are using waste paper as the raw material for manufacture of kraft paper used by the packaging industry. This waste paper is supplied by scrap traders of cities to paper mills, and due to unavailability of required quantity, waste paper is being imported to meet its demand in the country.