Printers upset over increase in paper prices

Ludhiana, May 14, 2014: The prices of card board, kraft and other kind of papers are being increased by the paper mills/dealers constantly and printers are not getting any relief because they are bound to supply the printed boxes and other material as per earlier committed prices to their customers.
In this way printers are facing a very tough situation one end they have to purchase the raw material at a higher price and sell the finished goods at lower prices due to earlier commitment/agreements.
Taking in view the worse situation, the members of Offset Printers' Association took out a procession against this high-handedness.
Earlier, during its emergency special meeting today, it was also unanimously decided to go on a token strike on May 17 in protest of the unnecessary increasing prices of Kraft paper, Paper board and other kind of papers. The prices of the paper and paper board are being increased by the paper mills without any prior information, with the result the packaging industry has to face awkward situation as the orders for the supply of corrugated and duplex boxes are booked at least 3 to 4 months in advance.
'With this increase it may not be possible for us to supply the boxes at the earlier agreed rates. We are facing this situation from the last three months', Sanjay Gandhi, Vice President OPA said, adding that the rates of the paper are being increased by the paper mills without any convincing reason.
Parveen Aggarwal, President OPA said that printing and packaging industries are already suffering due to non availability of skilled and semi skilled work force in this part of the country. The business has also suffered due to tax free zones in the neighbouring states, moreover import of Chinese goods has added more sufferings for this trade. He said that there is acute shortage of paper and paper board; mills are not taking any fresh order for the paper and paperboard. We don't understand if this shortage is real or fabricated. If the prices of the paper and paper board are not controlled forth with we may have to close the shutters, he said.
Romi Mancoo drawn the attention on the Essential Commodities Act 1955, and said that the all kinds of Paper is declared as the essential commodity and it is the duty of the Government to come to our rescue and check any undue increase in the prices of the Paper and Paperboard.
Giving detail of the situation, Romi Mancoo said that since January the prices of cardboard has increased from 30 to 40%, how a printer can survive in such a situation, especially when there is no prior notice for this steep increase in the prices, Government must intervene to check this increase, he said.
Gagabdeep Singh, Sukesh Bhardwaj, Parvesh Jagga, Ramit Saxena, Saurabh Jain, Sanjay Kumar, Amarjot Arora and Hans Raj Chopra also spoke on the occasion.
The members were of the view that there is no use in running the factories and decided for a token strike on May 17 and in case our demands are not take care of we may call an indefinite strike. The members were of the view that:
i.    There must be at least 3 month prior intimation for any increase in the prices; paper mills must make this information public so that the information may reach our customers and end users also.
ii.    Since Paper is an essential commodity complete specification, date of manufacture and mill rates may be mentioned on the wrappers.
iii.    Government should consider giving some subsidy to purchase the raw material to save this industry
iv.    The import duty on paper and paper board may be abolished, so as to import the paper from other countries when there is shortage in India.