The Corrugated Box industry comprising of MSME entrepreneurs has been suffering immensely as it neither has any control on the unabated increase in input costs nor over escalating Kraft Paper prices. The situation is critical and the very survival of the industry is under threat.
Corrugated Box Manufacturers have been serving their clients as one of the most crucial supply chain partners and the eco-friendly alternative to wooden and plastic packaging. In the last few months, almost all commodity prices have sky-rocketed and it is the case with Corrugated Box industry’s inputs too. This has crippled the industry to the extent that regular production has started getting affected.
Kraft Paper & Board prices are increasing relentlessly since November, 2020. There is an increase of 60 to 65% so far.
Other inputs including steel stitching wire, starch, labour, energy, transportation and other costs have witnessed unprecedented rise thereby increasing the conversion cost by 40 – 50%.
Keeping in view the grim situation faced by the industry, the Corrugated Box Manufacturers in Eastern India are constrained to go for voluntary shutdown of their units from 11th March 2021 to 13th March 2021. Their sincere intention is to seek:
- Awareness among consumers of corrugated box on the situation and better understanding of the ground realities so that the corrugated box industry is paid what is legitimately due towards the phenomenal Kraft Paper price hikes and Conversion costs.
- Price stability and transparency from paper mills and get them to the negotiating table in framing a medium to long term pricing policy.
- We draw the attention of the government to ease availability of kraft paper (raw material of paper mills) and monitor export of kraft paper so that domestic requirements are met.