Indian paper mills are raising prices again, with Bilt Graphic Paper Products Ltd (BGPPL) adding Rs 1,000 per tonne from October 24, 2026 and Khanna Paper raising writing and printing grades by Rs 3,000 per tonne with immediate effect. Both cite coal supply problems and higher input costs, and BGPPL has warned that further increases are likely.
The details were reported by The Pulp and Paper Times on October 24, 2026, based on mill circulars dated October 19 and October 22.
Why Is the Paper Price Hike Happening Now?
Mills report irregular coal dispatches, delayed rail rake movement and supplies being diverted to the power sector. Some mills are buying coal on the open market at higher prices and relying on costlier grid power.
The Indian Newsprint Manufacturers Association (INMA) wrote to Prime Minister Narendra Modi about difficulty obtaining coal from public-sector miners under long-term fuel supply agreements. INMA says more than 95% of coal dispatches currently go to power plants and backs a 75:25 power-to-non-power allocation recommended by the Cabinet Committee on Economic Affairs.
As of October 5, NTPC’s standalone fleet held 4.58 million tonnes of coal against a 12.83 million tonne requirement, or 36% of the normative level, about six days of supply. Across domestic-coal thermal plants, stocks were 18.15 million tonnes against a 57.23 million tonne normative level, roughly 6.5 days. Of 176 plants, 81 were classed as critical.
What Are the Specific Price Increases?
BGPPL’s circular dated October 19 raises its P7 price step by Rs 1,000 per tonne on all grades, including copy paper, at units BPU PM#1 to PM#6. The increase takes effect on October 24, 2026. Prices apply on billing date, and distributors may convert pending orders to the new prices. BGPPL described demand as strong, with record September billing and high order backlogs.
Khanna Paper’s circular dated October 22 raises all writing and printing grades by Rs 3,000 per tonne, citing coal, raw material, pulp, chemical, packing, fuel and logistics costs.
How Do Starch Costs Add to the Pressure?
Maize starch is a key paper input. Maize demand for ethanol is up 22% while maize production is down 15% from last year. BGPPL alone uses about 1,500 tonnes of starch a month.
Market Reaction and Industry Response
BGPPL’s October 22 circular said “the Indian Paper industry is entering a particularly sensitive phase” and that further increases in both coated and uncoated grades are inevitable if pressures persist. It also said no old price benefits will be extended on the basis of bookings, volumes or prior arrangements. No stock-market reaction or buyer-side response was found at the time of writing.
What Happens Next?
BGPPL has signalled additional coated and uncoated price revisions if coal and input costs stay high. Watch for coal allocation decisions on the 75:25 proposal, further mill circulars from other producers, and demand from the notebook and publishing season.
Frequently Asked Questions
How much have BGPPL and Khanna Paper raised prices?
BGPPL added Rs 1,000 per tonne from October 24, 2026, and Khanna Paper raised writing and printing grades by Rs 3,000 per tonne with immediate effect.
Why are Indian paper mills raising prices?
Mills cite irregular coal supply, costlier open-market coal and grid power, higher starch prices, and rising pulp, chemical, fuel and logistics costs.
Will paper prices rise further?
BGPPL says further increases in coated and uncoated grades are inevitable if cost pressures persist. No other mills’ plans were confirmed in the source reports.
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