In response to recent arbitrary price hikes by paper mills—reportedly up to 25% over the past three months—packaging entrepreneurs in North India have announced a strike commencing on October 5, 2024. This decision affects approximately 150 mills in the region. To mitigate the impact, these entrepreneurs plan to source paper from alternative suppliers in Gujarat, Madhya Pradesh, Maharashtra, and West Bengal, where higher-quality paper is available at more competitive prices.
The Uttar Pradesh Corrugated Box Manufacturers Association (UPCBMA) has highlighted significant financial repercussions due to the price surges, estimating losses exceeding ₹1,000 crore across the state. In industrial hubs like Tronica City, Ghaziabad, and Sahibabad, around 300-500 units consume between 200,000 to 250,000 tons of paper, generating an estimated ₹700 crore in business. The unjustified 20-25% increase in kraft paper prices has led to a working capital crisis for these industries, prompting the strike as a form of protest.
Former UPCBMA president Rajendra Bhati has accused paper mill operators of deliberately creating an artificial shortage to justify higher prices. He has called upon the state government to intervene and prevent the collapse of over 5,000 industries, emphasizing the potential loss of livelihoods for nearly 200,000 workers directly involved in the sector.
The timing of the strike, ahead of the festive season, raises concerns about broader economic implications, as packaging is essential for product distribution. The closure of corrugated box industries could severely disrupt the market and the economy, underscoring the urgent need for resolution between packaging entrepreneurs and paper mills to stabilize the industry.
