Aurangabad, Mar 27 (KNN) With the surging prices of kraft papers and papers by paper mills, the corrugated box manufacturers, who are mostly the micro, small and medium enterprises (MSMEs), are being badly affected.

Protesting against this, the corrugated box manufacturers have decided to keep their operations closed on March 27-28, 2017.

“Since February, 2017 the Kraft Paper Rates have shown steep upward trend in the market. Also, the paper mills have increased the rates of paper upto Rs. 7.00 per kg in all grades; despite of there is not much demand for the paper. This is supposed to be the highest rates of paper ever in the last 2-3 decades,” Dushyant Patil, Head, Western India Corrugated Box Manufacturers Association (WICMA), Marathwada Division said. 

Because of the surged prices, there was less demand for paper forcing the paper mills to remain closed for 5 to 6 days in a fortnight.

There is steep fall in the orders for the paper mills and they are not ready to accept the orders at lower rates.

This has badly affected the corrugated industries in the region and as a result of this corrugators are facing challenges to meet up the demands of their customers.

The paper mill owners have said that this situation has arisen due to increase in imported waste paper prices, increase in local waste prices and increase in other input costs. Even the paper prices in international markets have gone up by Rs. 8-10 per kg.

On the other hand, customers are not giving the increased rates to corrugators with immediate effect. Due to this the corrugated box manufacturers have to purchase the paper at higher rates and supply boxes at old/ lower rates as compared to the cost of paper they are purchasing from the paper mills.  If the situation does not improve, many of box makers may have to close their factory.

To review the market situation, 35 members of Marathwada division of WICMA (Western India Corrugated Box Manufacturers Association) convened a meeting recently.

In the meeting, it was decided that all the corrugators of this region will keep their operations closed on 27th and 28th March 2017.

Also, it was decided that corrugators will not order paper at higher rates from 25th to 31st Mar. And in case the customers do not consider the rate increase of boxes, in April, further such steps will be continued, Patil stressed. (KNN Bureau)