HP corrugated box industry hit by input cost surge, seeks relief

Shimla: Himachal Pradesh's corrugated box industry is grappling with a sharp surge in input costs, prompting urgent calls for price revisions and policy support.Himachal Pradesh Corrugated Box Manufacturers Association (PCBMA) president Aditya Sood warned on Thursday that rising expenses are pushing manufacturers into a crisis. Industry representatives, including Federation of Corrugated Box Manufacturers of India (FCBM) president Rajinder Bhatti, stressed that without immediate intervention, many small and medium units may struggle to survive. The cost of kraft paper, which constitutes nearly 80% of the production expenses, has risen by 15%-20% in recent months, while other inputs like glue, ink and adhesives have seen price surge of 30%-40%, he said. Increased electricity tariffs, wage hikes and logistical challenges, especially in Himachal Pradesh, have further strained operations. He added that the industry is also battling GST-related issues, particularly an inverted duty structure causing delays in refunds and blocking working capital. Additionally, LPG price hikes and shortages have reduced workforce availability by up to 30%.MSID:: 130634647 413 |