Paper imports from China into India surged 28% to 143,000 tonnes during the April-June period, consolidating China’s position as India’s single largest source of paper imports, according to data cited by the Indian Paper Manufacturers Association. Indian mills are now importing over 30,000 tonnes of finished paper per month, equivalent to more than 20% of total domestic demand, intensifying pressure on domestic producers already facing excess capacity.
The import surge comes as India’s paper industry navigates a structural shift in demand from writing and printing grades toward packaging paper, even as domestic mills contend with volatile raw material prices and prolonged payment cycles that limit their ability to compete on price against cheaper imported stock.
Why Are China’s Paper Imports Rising So Fast in India?
Chinese paper producers have been directing excess capacity toward export markets including India, where landed prices for certain paper grades can undercut domestic mill pricing, particularly for commodity-grade writing and printing paper. Indian Paper Manufacturers Association officials have pointed to this trend as a key factor deepening what the association describes as a slowdown across kraft and writing & printing paper markets, even as underlying domestic consumption keeps growing.
What Does This Mean for Domestic Paper Producers?
Finished kraft paper prices in India are currently hovering around ₹29-30.5 per kg, while waste paper feedstock prices range from roughly ₹16.5-18 per kg in South and Western India to ₹20-20.5 per kg in western Uttar Pradesh, squeezing mill margins from both the input and output sides. An analysis of 13 writing & printing paper manufacturers, representing around 70% of industry revenue, suggests any near-term margin improvement will come mainly from softer input costs rather than pricing power, reflecting how import competition is limiting mills’ ability to raise prices even as demand grows.
Market Reaction and Industry Response
IRPTA leadership has publicly flagged the deepening slowdown in kraft and writing & printing paper markets as a multi-factor problem, citing import pressure alongside excess domestic capacity and regional demand disparities. Industry leaders have called for closer monitoring of import volumes, noting that production growth in India has outpaced consumption growth, intensifying competition among domestic mills even before accounting for the added pressure from Chinese imports.
What Happens Next?
With India’s paper consumption projected to grow 6-7% annually toward roughly 30 million tonnes by FY 2026-27, the key question for domestic mills is whether that demand growth outpaces further import penetration. Industry associations are expected to continue pressing for measures to support domestic capacity utilisation as the sector heads into the back half of the fiscal year.
Frequently Asked Questions
How much did China’s paper exports to India grow?
China’s paper exports to India rose 28% to 143,000 tonnes during April-June, making China India’s largest single source of paper imports.
What share of India’s paper demand comes from imports?
Indian mills are importing over 30,000 tonnes of finished paper per month, more than 20% of total domestic demand, according to the Indian Paper Manufacturers Association.
What is the current price of kraft paper in India?
Finished kraft paper prices in India are currently around ₹29-30.5 per kg, while waste paper feedstock ranges from about ₹16.5 to ₹20.5 per kg depending on region.
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