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Corrugated box manufactures to approach CCI against four times hike in kraft paper price since Jan

Updated: Mar 21, 2017 07:06:34am
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Corrugated box manufactures to approach CCI against four times hike in kraft paper price since Jan

Hyderabad, Mar 21 (KNN) The corrugated box manufacturers, most of which are MSME units, are all set to approach the Competition Commission of India (CCI) alleging lobbying by the paper mills supplying kraft paper, the key raw material for the boxes. They said that the price of the raw material had been raised four times since January.

Talking to press persons, M.L. Agarwal, past president, Federation of Corrugated Box Manufacturers of India and VM Bharat, president, Andhra Pradesh Corrugated Box Manufacturers Association said the decision in this regard will be taken shortly at the national level.

They said complaint will be filed likely by next week.

The corrugated box manufacturers said the increasing price of kraft paper several times affected by the mills since January has compelled them to file a complaint.

They accused the raw material manufacturers of acting as a cartel as they are affecting a similar quantum of increase on the same day.

The effective increase in raw materail price has been in the 22 to 29 per cent band and varies based on the paper quality.

Corrugated box manufacturers in Andhra Pradesh and Telangana have started protesting the hike. An estimated 2,500 units, with as many as 1,500 of them in and around Hyderabad, are on strike from March 19 to 21.

Apart from affecting supplies to a host of industries, which are users of corrugated boxes and possibly some of them also switching over to plastics, the closure of the units would affect livelihoods of several thousands of people, the leaders said.

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