Over 125 craft paper mills face threat of closure

Their inability to pass on sharp hike in input costs may also see 40,000 employees lose their jobs

More than 125 craft paper mills in Gujarat and Maharashtra, with a combined annual turnover of Rs 12,000 crore, are on the verge of closure due to a sharp increase in the cost of raw materials (waste paper) and their inability to pass on the hike to consumers due to cheap imports from ASEAN countries under the Free Trade Agreement (FTA).

India and China are dependent on import of waste paper from abroad for recycling purpose. However, due to the increase in the consumption of waste paper in the global market, raw materials prices have gone up by 35