Ajay Modi speaks to R R Vederah, managing director of Ballarpur industries (Bilt), the country's biggest paper producer, and former president of the Indian Paper Manufacturers' Association, to get a clear picture of the sector. |
Do you think rising paper prices are contributing to inflation? |
I don't think the increase in paper prices has in any way contributed to inflation. The industry has hiked prices by about Rs 1000-1500 a tonne in the current financial year, which is about 3-4 per cent hike. |
Will the country see an increase in paper imports as domestic demand may outstrip production? |
Demand will exceed production in the coming years. Moreover, with the customs duty coming down to the Association of South East Asian Nations (Asean) levels, imports are bound to rise. |
How will imports affect the domestic producers? |
The Indian paper industry, pre-empting challenges from imports, is taking steps to improve quality and productivity. The industry is trying to ensure the imported paper doesn't have a quality edge. |
Why are paper prices being hiked so frequently? |
The industry is grappling with the rise in prices of raw materials in recent times. Over the last one year, hardwood pulp prices have moved from $525 to $625 per tonne. In such a scenario, increasing prices becomes necessary. |
How is the industry coping with the raw material shortage in the country? |
The industry is procuring about 6 million tonne of wood from farm forestry operations. We will continue to do so. Besides this, we have proposed to the government a multi-stake partnership programme that entails a tripartite association between the landowner, the land user and the promoter of plantation. Under this policy, the land holding size will be in the range of 5-50 hectares and it will be given on lease for a period of 30 years through a competitive bidding process. |
Is the industry planning more price hikes? |
Prices should remain stable for the rest of the financial year. Most companies have already increased prices 4-5 times this year. |
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