India has recommended an anti-dumping duty of up to USD 376 per metric tonne on imports of virgin multi-layer paperboard from Indonesia, in a move to protect domestic paper mills from below-cost competition. The India anti-dumping duty on paperboard from Indonesia follows a Directorate General of Trade Remedies (DGTR) investigation that found Indonesian exporters were selling multi-layer paperboard in the Indian market at prices materially below their home market cost of production.
Virgin multi-layer paperboard is widely used in premium packaging for pharmaceuticals, cosmetics, food products, and consumer electronics. Indian producers, led by companies operating in the paper and paperboard clusters of Maharashtra, West Bengal, and Andhra Pradesh, had filed the anti-dumping petition citing injury to domestic industry from surging low-priced imports over the past three to four years.
Why Is India Imposing Anti-Dumping Duty on Indonesian Paperboard?
The India anti-dumping duty on Indonesian paperboard was recommended after the DGTR’s investigation confirmed that Indonesian exporters were selling virgin multi-layer paperboard at prices significantly below their normal value, causing material injury to Indian manufacturers. The investigation found that imports from Indonesia had surged in volume and market share, suppressing domestic price realisations and compressing margins for Indian paper mills. The duty of up to USD 376 per MT is designed to neutralise the price advantage that dumped imports held over domestically manufactured paperboard, enabling Indian producers to compete on a level playing field.
Impact on India’s Paper and Packaging Industry
India’s paper industry — which accounts for around 55% of total turnover through the paperboard and packaging segment — had been under significant margin pressure from import competition. The paperboard and packaging segment recorded year-on-year growth of 8.2% in FY24, but profitability was constrained by cheap imports from Indonesia and other Southeast Asian producers. With the anti-dumping duty recommendation in place, domestic manufacturers are expected to recover pricing power in the multi-layer paperboard segment. End-use industries including pharmaceutical and FMCG packaging buyers may see a moderate increase in input costs, though industry analysts expect domestic production capacity to absorb demand without significant shortfalls.
Market Reaction and Industry Response
Indian paper manufacturers and their industry association welcomed the DGTR recommendation as long-overdue protection for domestic capacity. Paper mills in Maharashtra and West Bengal, some of which had idled capacity due to import competition, are expected to ramp up production of virgin multi-layer paperboard following the duty implementation. Indonesian exporters and Indian importers of the product have 30 days to comment on the final duty notification before it takes effect, as per standard anti-dumping procedure. Pharma and FMCG packaging buyers are reviewing their supplier mix and long-term supply contracts in anticipation of the duty coming into force.
What Happens Next?
The DGTR’s recommendation will be reviewed by the Ministry of Finance before a final anti-dumping duty notification is issued. The duty, if confirmed, would typically apply for five years and can be reviewed or extended thereafter. India has demand growth of 5-7% expected for the paper industry in FY26, and domestic producers will look to capitalise on import substitution opportunities created by the new duty. The broader Indian paper industry is also watching proposed MoEF&CC Eco-Mark norms for paper and paperboard products, which would create additional compliance requirements around fibre sourcing, chemical usage, and recyclability standards.
Frequently Asked Questions
What is the anti-dumping duty India recommended on Indonesian paperboard?
India has recommended an anti-dumping duty of up to USD 376 per metric tonne on imports of virgin multi-layer paperboard from Indonesia. The duty was recommended by the Directorate General of Trade Remedies (DGTR) following an investigation into below-cost imports that caused material injury to Indian paper mill producers.
What is virgin multi-layer paperboard used for?
Virgin multi-layer paperboard is used in premium packaging for pharmaceuticals, cosmetics, food and beverage products, and consumer electronics. It offers high rigidity, print quality, and barrier properties compared to recycled-content board, making it preferred for high-specification packaging applications in India and globally.
How will the anti-dumping duty affect Indian paper manufacturers?
Indian paper manufacturers are expected to recover pricing power and improve margins in the multi-layer paperboard segment once the duty takes effect. Domestic mills that had idled or reduced paperboard production due to cheap Indonesian imports will likely ramp up capacity utilisation. End-user industries may face moderate input cost increases, but analysts expect domestic supply to be sufficient to prevent significant price spikes.
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