The corrugated box industry is currently grappling with significant challenges due to escalating raw material costs and persistent supply chain disruptions. A primary concern is the substantial increase in the price of kraft paper, the essential component in corrugated box production. Since 2020, kraft paper prices have surged by approximately 90-100%, with a notable 25% hike occurring in recent months. This unprecedented rise has severely impacted manufacturers, pushing many toward the brink of closure.
The situation is exacerbated by supply chain issues, including frequent shutdowns of paper mills, leading to erratic supplies and extreme price volatility. These disruptions have resulted in delays and shortages, further straining the industry’s ability to meet demand. The combination of soaring raw material costs and unreliable supply chains has left manufacturers with limited options but to consider increasing product prices to mitigate losses.
In response to these challenges, industry associations are advocating for measures to stabilize the market. The Indian Corrugated Case Manufacturers’ Association (ICCMA) has highlighted the need for consistent kraft paper supplies and more predictable pricing to ensure the sustainability of the corrugated box sector. Without such interventions, the industry faces potential widespread closures, threatening the livelihoods of thousands of workers and disrupting supply chains for essential goods.
The ongoing crisis underscores the urgent need for collaborative efforts between manufacturers, suppliers, and policymakers to address the root causes of price increases and supply chain disruptions. Implementing strategies to enhance supply chain resilience, regulate raw material pricing, and support the corrugated box industry is crucial to prevent further destabilization and ensure the continued availability of essential packaging materials.
