Corrugated Box Industry in Crisis Due to Sharp Cost Surge; Demands Price Revision and Policy Support

Corrugated Box Industry in Crisis Due to Sharp Cost Surge; Demands Price Revision and Policy Support

Chandigarh 30 April ( Ranjeet Singh Dhaaliwal ) : Corrugated box manufacturers in India have expressed serious concern over rising costs, calling it an unprecedented crisis. The Himachal Pradesh Corrugated Box Manufacturers Association (HPCBMA) has urged customers, stakeholders, and policymakers to intervene immediately and take corrective measures in view of the current situation of the industry. At the press conference, Rajinder Bhatti, President of the Federation of Corrugated Box Manufacturers of India (FCBM); HPCBMA President Aditya Sood; HPCBMA former President Gagan Kapoor; S. K. Chauhan, President of UPCBMA; Harish Jairath, President of NICMA; Sunny Jain, President of HCBMA; and Kuldeep Makkar, President of PCBMA were present.

Addressing a press conference held at the Chandigarh Press Club, Rajinder Bhatti, President of the Federation of Corrugated Box Manufacturers of India (FCBM), stated that the prices of Kraft paper—the primary raw material used in corrugated box manufacturing—have increased by 15–20 percent over the past few months. Since kraft paper accounts for nearly 80 percent of the total cost, this increase is having a direct and widespread impact on the entire industry. He attributed the rise to global geopolitical conditions, supply chain disruptions, and volatility in international markets.

In addition, the prices of other essential inputs such as glue, ink, adhesives, staple wire, and strapping wire have surged by 30–40 percent. These rising costs have significantly increased production expenses and intensified financial pressure on the industry. He added, “Manufacturers in Himachal Pradesh are particularly facing cost pressures and logistical challenges. The government must consider immediate relief measures.”

HPCBMA President Aditya Sood, stated that the continuous increase in raw material prices has completely impacted the cost structure of the industry. “If timely price revisions and policy support are not provided, it will become difficult for many units to sustain operations.” He further added that not only raw material costs but also factory operating costs are rising steadily. Increased electricity tariffs and statutory wage hikes have further escalated production costs, making it difficult for many units to continue operations.

At the same time, the inverted duty structure under the GST regime has emerged as a major challenge for the industry. Higher input taxes and lower output taxes are leading to delays in refunds. Due to complex and time-consuming procedures, working capital is getting blocked, severely impacting cash flow and liquidity. HPCBMA former President Gagan Kapoor said that the price of 19 kg LPG cylinders has increased from ₹1,600 to ₹2,200 between February and April, and currently only 25–30% of the required supply is available. Due to the shortage of LPG, labourers are also returning.At present, the workforce in factories has reduced by 25–30%.

S. K. Chauhan, President of UPCBMA, and Harish Jairath, President of NICMA, stated that delays in GST refunds on input services and rising costs have further worsened the situation. The prolonged refund process is affecting the working capital cycle and pushing the industry under financial stress. They said, “The inverted duty structure in GST has become a serious issue for the industry. Delays in refunds are putting heavy pressure on working capital. The 30–40 percent increase in input costs has most severely impacted small and medium enterprises, which require special support.”

Sunny Jain, President of HCBMA, and Kuldeep Makkar, President of PCBMA, said, “Rising electricity tariffs and wages have further increased production costs. Policy support is essential to keep the industry competitive.” They added, “This is the time for collaboration between the industry and the government. With the right measures, this crisis can be overcome.” The Association has urged the government and concerned stakeholders to take immediate action, accept price revisions, and provide policy support to stabilize this important packaging sector.