Indian paper sector seeks larger import obligation to stage enjoying discipline

Following the 43 per cent rise in import of paper and paperboard within the first half of FY24 and the 25 per cent improve in quantity phrases in FY23, India’s paper business has requested for a hike within the import obligation on paper within the upcoming Finances to make sure a stage enjoying discipline for home producers.

The business has been reeling underneath stress with underutilisation of capability owing to an indiscriminate improve in import of paper and paperboard, the Indian Paper Producers Affiliation (IPMA) has mentioned in its pre-budget submission to the federal government.

The imports have elevated regardless of ample home manufacturing capability for every kind of paper, mentioned Pawan Agarwal, president of IPMA.

Paper producers in export-dependent economies equivalent to Indonesia and China take pleasure in substantial incentives, garnering important market share in several nations, the affiliation assertion mentioned. Nevertheless, muted demand as a result of financial slowdown and the anti-dumping/ anti-subsidy tariffs imposed by the US and EU has led to important extra capability of paper and paperboard in China and Indonesia. Making the most of the nil or low import obligation in India, these nations are diverting their extra stock, IPMA mentioned.

The home paper business has invested giant quantities within the current previous to improve and implement clear know-how, product high quality, agro/farm forestry, and so forth, with extra investments additionally within the pipeline. These investments shouldn’t be jeopardised by concessional imports underneath free commerce agreements, it mentioned.

In response to the Division for Promotion of Trade and Inner Commerce (DPIIT), solely 553 of the 900-plus paper mills within the nation are presently operational.

IPMA needs the fundamental customs obligation on paper and paperboard imports to be elevated from 10 per cent to 25 per cent as India’s WTO-bound price is 40 per cent.

This improve in customs obligation is not going to influence the duty-free imports underneath FTAs, IPMA mentioned. It needs paper and paperboard to be positioned within the unfavourable/exclusion listing (that’s, no preferential remedy when it comes to import tariff) when reviewing current FTAs (ASEAN, South Korea and Japan) and formulating new FTAs.

Appropriate safeguards, anti-dumping and countervailing duties on the import of varied grades of paper ought to be expeditiously imposed, particularly after the advice of the Directorate Common of Commerce Cures, IPMA mentioned.