Corrugated box users to pack up on high paper prices
Exporter using corrugated box as packaging material will be hit by a price rise of Kraft paper. Besides, supply of corrugated box may turn erratic as paper mills have decided to close mills n the weekends. Recently paper mills hiked the price of Kraft paper to Rs1, 500 /tonne. The boxes are also used in the pharma and food industry amongst others.
Industry leaders feel that service tax and rising cost of raw materials will hinder the growth of the industry. Demand for boxes is increasing, as India is becoming a major player in the global market.
The increase in the cost cannot be passed on to the exporters or the end users as prices have been locked in via long contracts. At least this July the corrugated box manufactures will have to bear the burden.
