Eastern India Corrugated Box Manufacturers’ Association faces a critical situation
News Desk, News Nation 360: The Corrugated Box industry comprising of MSME entrepreneurs have been suffering immensely as it neither has any control over the unabated increase in input costs nor over escalating Kraft Paper prices. The situation is critical and the very survival of the industry is under threat. Corrugated Box Manufacturers have been serving their clients as one of the most crucial supply chain partners and the eco-friendly alternative to wooden and plastic packaging. In the last few months, almost all commodity prices have sky-rocketed and it is the case with the Corrugated Box industry’s inputs too. Kraft Paper & Board prices are increasing relentlessly since November 2020. There is an increase of 60 to 65% so far and this has crippled the industry to the extent that regular production has started getting affected. Other inputs including steel
stitching wire, starch, labour, energy, transportation and other costs have witnessed unprecedented rise thereby increasing the conversion cost by 40 - 50%. In this very crucial condition, the Corrugated Box Manufacturers in Eastern India are constrained to go for the voluntary shutdown of their units from 11th March 2021 to 13th March 2021. Their sincere intention is to seek, 1) Awareness among consumers of the corrugated box on the situation and a better understanding of the ground realities so that the corrugated box industry is paid what is legitimately due towards the phenomenal Kraft Paper price hikes and Conversion costs 2) Price stability and transparency from paper mills and get them to the negotiating table in framing a medium to long term pricing policy and 3) They draw the attention of the government to ease the availability of kraft paper (raw material of paper mills) and monitor the export of kraft paper so that domestic requirements are met. Bharath Kedia, Former President and Chairman-Taxation Sub-Committee, EICMA, Mohit Bajaj, President, Achyut Chandra, Vice-President and Pradip Agarwal, Hony. Secretary of Eastern India Corrugated Box Manufacturers’ Association has attended the press conference at Kolkata Press Club to deliver their demand to the public domain.
Pic : Krishnendu Kundu
Report : Anustup Kundu