- The Challenges faced by Corrugation MSME idustry in India
Brief Facts about Corrugation Industry in India
1. There are over 10,000 Corrugators in India. This sector mainly comprises of Small and Medium Enterprises (MSME).
2. This sector employs more than five lakh workers directly and indirectly.
3. Approx annual paper used is 45 Lakh Tonnes.
4. The Federation of Corrugated Box Manufacturers of India (FCBM) is umbrella organization of Corrugators in India.
5 . There are also zonal chapters and State wise associations of Corrugators.
6 The packaging material is one of the most significant parts of the supply chain. This corrugated box industry plays a crucial role in the industrial growth and packaging industry as a whole.
7 The corrugated packaging industry has been adequately meeting the packaging requirements of the country it also contributes to the essential goals environmental protection and the ecological balance
The Challenges faced by Corrugation SME’s in India
· Rising input costs and failure to get suitable raise in prices.
· In last 6 months there is approximately 18-20% rise in prices of kraft paper - the main raw material for the industry - by Rs 2,000-4,000 per tonne.
· The Rs 15,000 crore corrugated box industry is facing facing tremendous challenges of rising input costs.
· The Desired increase in prices of corrugated boxes ranges from 18-20 per cent in the northern region and by 15-16 per cent in the western and southern regions.
· Apart from this, the cost of raw material like glue and stitching wire has gone up steeply, and the prices of petroleum products and frequent power cuts and shortage of manpower have worsened the situation
· The paper mills had raised the price but the final consumers (buyers of corrugated boxes) are not paying heed to repeated requests of Corrugators.
· It is also demanded that the import duty on kraft and waste paper should be abolished
The corrugated packaging industry has been adequately meeting the packaging requirements of the country. It is expected that the government should intervene to resolve their problems otherwise This industry would have a drastic effect on the industry as a whole as packaging material is one of the most significant parts of the supply chain.
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