Trouble In Paper Industry – Free PDF Download

WHY IN NEWS?

• The Indian Paper Manufacturers Association has called for paper and paperboard to be kept in the Negative List, with no further import tariff concessions, under the proposed RCEP.
• This was to safeguard the industry’s investment and incentivise it for further growth, said the association.
•  “The paper industry has made significant investments to ramp-up capacities in the last few years. However, the commercial viability of the investments is being impacted adversely on account of rising imports,” said AS Mehta, President, IPMA.
• RCEP countries want India to eliminate import duties to tap the growing domestic market.
• The domestic industry needs to be safeguarded due to escalating imports from China and ASEAN countries.

WHAT ARE THE WORRIES FOR DOMESTIC INDUSTRY?

• Duty-free imports under RCEP will disrupt industry’s value chain linkages with farmers which has led to enhanced rural incomes, employment and greening of India.
• Already, basic customs duty (BCD) on paper and paperboard stands at nil under India-ASEAN FTA and India-Korea CEPA.
• Under the Asia Pacific Trade Agreement (APTA), India extended import tariff concessions to the world’s largest paper producer China and reduced BCD to 7% from 10% on most grades of paper.
• On the other hand, large paper markets such as the US and EU have imposed anti-dumping duties on paper and paperboard originating from some of these countries.
• In the last eight years, imports have grown at a compound annual rate of 14% to 1.48 mt in 2018 from 0.54 mt in 2010.
• In value terms it was up 13 per cent to ₹9,134 crore last fiscal from ₹3,411 crore in 2010-11.
• In the same period, imports from ASEAN and South Korea, with whom India has FTAs, has increased at a CAGR of 34% and 42% in volume terms.
•  India has been witnessing an unprecedented rise in dumping of hazardous waste paper due to a ban on these materials in China.

PAPER INDUSTRY IN INDIA

• India’s first machine made paper was manufactured in 1812.
• Indian paper industry accounts for 1.6% of world’s production.
• It contributes around Rs. 3000 cr. to the exchequer.
• Paper industry in India is mainly plantation based and requires huge amount of water.
• It has created sustainable livelihood in rural areas and has helped the local population especially for women to earn their livelihood.
• Some of the paper products are- paper boxes, sheet paper, tissues, stationary, envelops etc.
• Specialty papers like sandpaper, carbon paper doesn’t come under paper product industry.

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