Indian paper mills have begun raising prices across duplex board, virgin packaging board, and writing-and-printing paper (WPP) grades, with industry experts projecting an overall 6-7 percent price increase in the coming months.
According to industry sources, several mills have already increased prices by Rs 1 to Rs 3 per kilogram on duplex, packaging board, and WPP grades. The move comes as the government’s Minimum Import Price (MIP) on virgin multi-layer paperboard, set at Rs 67,220 per metric tonne, remains in force through the second half of 2026, curbing cheap imports and giving domestic mills more pricing power.
Why Are Paper Prices Rising Across India in 2026?
The price increases stem from a combination of elevated input costs, including pulp and energy, and the continuation of import restrictions that have reduced competition from cheaper multi-layer paperboard imports. Mills that had been absorbing rising costs amid soft demand are now passing them through as the MIP extension gives them room to reprice without losing share to imports. Waste paper, a key raw material for many mills, has also seen local rates rise by Rs 1.5 to Rs 2.5 per kg in recent weeks.
What Does This Mean for the Broader Packaging and Print Industry?
Higher paper prices will feed directly into costs for packaging converters, publishers, and FMCG companies that rely on duplex and packaging board for cartons and printed packaging. Buyers who had shifted to purchasing strictly on an as-needed basis, rather than holding inventory, may now face margin pressure as mills implement successive price rounds. Export-oriented paper segments, where Indian mills compete with cheaper Southeast Asian material, could see limited benefit from the domestic hikes.
Market Reaction and Industry Response
Industry leaders have described the outlook for the kraft and packaging paper segment as cautious even as prices rise, citing excess domestic capacity and regional demand disparities that continue to weigh on overall sentiment. Analysts tracking listed paper stocks such as JK Paper, West Coast Paper Mills, and Andhra Paper have flagged the MIP extension as a key factor supporting near-term pricing power for domestic producers, even as import volumes remain a concern.
What Happens Next?
Buyers and converters are expected to watch for further price rounds through the third quarter of the fiscal year, alongside any government review of the Minimum Import Price policy ahead of its scheduled expiry in September 2026. Mills are likely to continue prioritising domestic pricing power over export volumes while the MIP remains in place.
Frequently Asked Questions
Why are Indian paper mills raising prices in 2026?
Rising input costs and a government Minimum Import Price on virgin multi-layer paperboard have given domestic mills more room to increase prices on duplex, packaging board, and WPP grades.
How much have paper prices increased?
Mills have raised prices by Rs 1 to Rs 3 per kilogram on key grades, with industry experts projecting a 6-7 percent increase overall.
Who is affected by rising paper prices?
Packaging converters, publishers, and FMCG companies that depend on paperboard and WPP for packaging and printing face higher input costs.
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