Soaring input costs, as well as shutdown of various plants by mills producing kraft paper have been compelling many SME corrugated box manufacturing units towards closure. The packaging industry in India is fighting a losing battle subsequent to the rise in input costs faced by the SME corrugated box manufacturing units. Large number of small-scale corrugated box manufacturers are living under constant threat of shutting down as they struggle to meet the rising prices of basic raw materials. Naturally, large-scale closure of SME corrugated box manufacturing units might probably hinder the growth prospects of the domestic packaging sector. Soaring input costs posing problems The prices of kraft paper which is apparently the principal raw material for the corrugated box industry in India>manufacturing sector have risen significantly in the recent months. In fact paper mills manufacturing kraft paper probably are intending to further their prices, which will undoubtedly add to the existing woes of ssSME corrugated box manufactures and suppliers. According to a small-sized corrugated box maker in Ahmedabad, constant rise in the prices of kraft paper is bringing the manufacturers to their knees. Moreover, there is zero competition what with SME corrugated box makers finding it difficult to keep the prices low in face of rising manufacturing costs. That apart, even the prices of starch and galvanized wire have also increased manifold. Furthermore, the collective shutdown of plants has also dealt a severe blow to the corrugated box manufacturing units. Another proprietor from Hyderabad also voiced the same concern that’s being faced by rest of his counterparts in different parts of India. SME corrugated box makers are apprehensive that they’ll be compelled to put in abeyance their operations, if this situation continues for some more time. |
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