New Delhi, Jan 23 (KNN) The domestic paper and paperboard manufacturers are seeking a substantial increase in import duties to 25 per cent on paper products in the upcoming Budget 2024.

Simultaneously, industry stakeholders are advocating for the implementation of  Quality Control Orders (QCOs) to counter the influx of cheaper imports, reported PTI.

The industry's appeal to the government stems from its commitment to safeguard the interests of domestic paper manufacturers and uphold the quality standards of paper products available to Indian consumers.

In its pre-budget submission to the government, the industry has specifically proposed raising the basic customs duty on the import of paper and paperboard from the current 10 per cent to 25 per cent. It is noteworthy that India's WTO Bound rate for these products stands at 40 per cent.

The Indian Paper Manufacturers Association (IPMA) has explicitly urged the government to take proactive measures ensuring the supply of high-quality paper products to Indian consumers and preventing the import of sub-standard goods. The association has called for the issuance of QCOs for various grades of paper.

Pawan Agarwal, President, IPMA, has advocated for placing paper and paperboard on the negative list during the review of existing Free Trade Agreements (FTAs) with ASEAN, South Korea, and Japan, as well as in the formulation of new agreements.

Agarwal clarified that an increase in customs duty would not impact duty-free imports under the FTAs. He further emphasised the need for swift imposition of safeguard, anti-dumping, and countervailing duties on paper imports, particularly following recommendations from the Directorate General of Trade Remedies (DGTR).

IPMA has highlighted the significant challenges faced by the paper industry due to the underutilisation of capacity resulting from a surge in paper and paperboard imports.

Despite possessing ample domestic production capacity, India has witnessed a steady increase in paper and paperboard imports.

In the first half of FY24, imports surged by 43 per cent, following a 25 per cent increase in FY23. Concerned about the implications of this trend, IPMA has formally requested an appropriate hike in import duties on paper in the upcoming budget to create a level playing field for domestic manufacturers.

(KNN Bureau)