The Indian Paper Manufacturers Association (IPMA) has raised concerns about the surge in imports of virgin fibre paperboard (VFP) from countries like China and Chile. They argue that these imports, often priced below production cost, are severely impacting the domestic industry. In the first half of 2024-25, VFP imports have tripled compared to the previous year, reaching over 30,000 tonnes per month in August and September. This significant increase, which accounts for over 20% of total domestic demand, is straining the profitability and return on investments of domestic manufacturers.

The situation is further exacerbated by the impending threat of large-scale imports from Indonesia, where recent capacity expansions are primarily aimed at exports. Domestic manufacturers have ambitious plans to invest Rs 20,000 crore to capitalize on the growing VFP market, which is projected to reach Rs 25,000 crore by 2030. However, these investments are at risk due to the influx of cheap imports.

To address this issue, IPMA has urged the government to intervene and create a level playing field for domestic manufacturers. By taking appropriate measures, the government can protect the interests of the domestic industry and ensure its sustainable growth.