Notebooks dearer on high paper prices

Increasing paper prices have made school stationery costlier during this academic year. Prices of notebooks, long books and other school stationery are at least 5 per cent higher on an average.

Notebook manufacturers attribute the price rise to surging paper prices and shortage of quality paper required to manufacture notebooks and school stationery. "In the last one year, paper prices went up by 10-15 per cent, but this season, we have raised prices by only 5 per cent," said Amrut Shah, CMD of Sundaram Multi Pap, a leading school stationery manufacturer. Demand for quality school stationery was on the rise. However, manufacturers were focusing more on paper for copiers, which gives them better returns. The focus was on lower quality paper than on the better quality 54 gsm paper needed to manufacture notebooks, said sources in the Maharashtra Book Manufacturers Association.

The Rs 8,000 crore school stationery market, growing at 15 per cent a year, is largely unorganised. Besides, there are no national brands in the school stationery sector. The industry has three listed manufacturing companies "� ITC Navneet Prakashan and Sundaram Multi Pap.

Explaining the market dynamism, Amrut Shah said: "This is a thin-margin, labour-oriented business and the brands have grown regionally. It is difficult for new entrants to grow despite the government making higher allocation for education."