Newsprint prices jump 20 per cent

Despite a continuing lean season, newsprint prices surged 20 per cent in the first four months of the current financial year to Rs 26,500 per tonne from Rs 23,400 per tonne for 45 GSM (gram per square metre).

The price of 48 GSM newsprint also shot up to Rs 27,500 per tonne in the period from Rs 23,000 in April.

This price hike by market leaders such as Tamil Nadu Newsprint, Ballarpur Industries and Andhra Pradesh Paper Mills has been followed by players such as Shree Bhawani Paper Mills by raising prices by 10 per cent.

The current price rise has been attributed mainly to the surging raw material prices including wood, bagasse and imported waste paper.

Some manufacturers as Andhra Pradesh Papers Mills have been facing a severe raw material shortage, thus opting for short-cycle trees' plantation.

"The newsprint industry is passing through a lean season and would see a real price boost after Dussehra, once the seasonal demand starts pouring in," said Girish Tandon of Shree Bhawani Paper Mills.