KARUR (Tamil Nadu): Corrugated box manufacturers have voiced concern at the frequent spike in the price of raw materials.
A vital link in the manufacturing chain, corrugated box makers are facing a shortage of paper and a steep rise in the price of raw materials. There are more than 500 industries across the state. As far as Karur is concerned, there are over 40 factories that engage 1,000 people. The crisis is threatening the livelihood of
the workforce.
"The hike in raw material price hit us hard and the units might be shut if the issue is not addressed soon," said Karthikeyan, a functionary of the Karur Corrugated Box manufacturers association.
"Because of COVID-19, import of high-quality pulp paper decreased drastically. As the majority of the trade require carton and corrugated boxes for packing, the demand has been increasing every year. Unlike other industries, this is an order-based industry.
"This year, we saw a substantial increase of 20% in demand. While demand is increasing, the supply of raw materials has been decreased substantially. As a result, the price of paper has gone sky-high. If the price keeps on increasing, all units might be forced to shut down" he concluded.
The South Indian Corrugated Box Manufacturers Association's (SICBMA) vice president S.Thirumoorthi (Coimbatore Chapter) said, "We're part of All India Federation of Corrugated Box Manufacturers Association (FCBMA), who have taken the raw materials issue to the central government's notice. We've written to the PMO on the issue.
"As far as corrugated box manufacturing is considered, only recycled and waste papers are used. But in order to manufacture sturdy boxes, the high-quality pulp is imported. But due to COVID-19, this was disrupted, and eventually, the price of Kraft paper reels which are sourced locally from the paper mills increased drastically and frequently."
"The price of kraft papers which are supplied by the paper mills have been hiked for the 6th time by Rs 9,500 on Tuesday. One ton of paper which used to cost us about Rs 38,000 to Rs 40,000 l months ago, is now being sold at Rs 50,000 to Rs 53,000 per ton.
"With more than 25,000 families' livelihood are dependent on the box manufacturing industry, the government must interfere in this matter and put a cap on the prices of the paper reels. And they also must clear the hurdles in importing paper from other countries" he concluded.