23% rise in kraft paper price hits corrugated box manufacturers hard

Many box making units face closure, seek equivalent price hike from user industries to stay afloat

In a major blow to corrugated box manufacturers, prices of kraft paper have risen by 23 per cent over the past three months due to short supply, following intermittent closure of production units.

Trade sources said that kraft paper prices are likely to have surged the highest in any quarter. Trading currently at Rs 31 a kg, kraft paper prices have risen by Rs 7 a kg across all varieties since January and Rs 2-3 a kg in March alone.

The sharp increase in the cost of this critical raw material has put a question mark on the financial viability of corrugated