Sivakasi printing industry in limbo after rise in raw materials’ cost

According to V Sudarson, president of Sivakasi Master Printers Association, the cost of paper, one of the key raw materials, increased about 40 to 50 per cent a kilo and board price rise is between 75 and 90 per cent. The price of raw material for the print industry continues to rise unabated and resultantly cost of production has gone up by 40 per cent.

The unhealthy situation triggered a cascading effect all the way down, leaving the production in limbo. With the market uncertainty looming large, production has declined by half. However, to offset the impact of rising raw material cost, the manufacturers are forced to increase the price of finished commodities by about 30 to 40 per cent in the market.

Adding to the woes, he said the availability of raw material of late is limited and he sought the Government run paper and paperboard mill to make sure that supply of papers and boards is infinite. The industry at large is in crisis, a situation only likely to get more difficult in coming days.

At last, the European Union lifted its ban on exports of waste paper to India from April 1, bringing some relief to the paper industry hit by raw material shortage, but consignments shipped from those countries take 45 to 60 days to reach the destination.

“With around 2,000 printing press units in Sivakasi, almost 65 per cent of the total population relies much on printing and allied industries. Over one lakh workers depend on these industries for livelihoods,” Sudarson said.

K Jeyasankar, secretary, Tamil Nadu Calendar Manufacturers Association, Sivakasi, who cited that a tonne of craft paper is priced at Rs 54,000 against Rs 24,000, added that the All India Federation of Master Printers, New Delhi would make a final call on attention-seeking protest likely on April 19, to reduce raw material cost.