India’s paper industry supply chain affected by the epidemic increase in the price of finished paper

India’s paper industry supply chain affected by the epidemic increase in the price of finished paper

Since Indian Prime Minister modi announced the implementation of the national blockade order during the epidemic on the evening of March 24 local time, India has been “closed” for more than a week, and the national blockade order of India will start on March 25 local time for 21 days.
According to local media on March 27, the national blockade caused by coronavirus has seriously affected the supply chain of paper mills. Production units that need to start work normally need to apply for permission from each state government, and the production units can only be carried out after obtaining the necessary permission from the state government.
At present, the supply chain of both raw materials and finished products has been interrupted, and the continuous operation of logistics and factories has been affected. In response to government regulations, ITC pspd, a leading Indian paper company, has announced the closure of its bhadrachalam plant. “In order to prevent the spread of the epidemic, the company’s management decided to stop the production activities of bhadrachalam plant from March 25, and the specific operation time will be notified separately,” ITC issued a notice
Siddharth chowdhary, full-time director of shree Rama newsprint limited, another paper company in India, also said: “since March 22, we have completely shut down the production of a printing and writing paper machine. But for the second machine in the transformation stage, we are facing great pressure from newsprint users and local governments to produce newsprint. Therefore, we have continued to produce newsprint in the past two to three days. “
Paswara papers, the main kraft paper producer in northern India, has also suspended production since March 22. Mr. Vinod Kumar, the company’s director, said: “this has brought huge losses to production and revenue. We need to support the government’s policy to contain the epidemic, but also to maintain the company’s living conditions. Therefore, we hope that the government will give up the loan interest for a period of time and ensure the deferral of goods and services tax.”
Sources said the “blockade” seriously affected the paper-making enterprises in Uttar Pradesh. Orient Paper & Industries Limited, a major producer of writing and printing paper in Madhya Pradesh, has also stopped production.
Mr. Amit singla, managing director of PSB papers PVT, a kraft paper producer in uttrakhand, said: “after the closure period, demand for finished paper (wrapping paper) is expected to decline by 25% due to supply chain disruption, even after the market reopens. It will take nearly a week for the supply chain to return to its normal state, including the availability of labor, raw materials and other necessary items. “
Mr. Akshay Jain, director of Silverton pump & papers PVT. Ltd., said: “this is a huge loss for the paper industry, especially in the field of printing and writing paper. The peak season of market demand for printing and writing paper is from March to May. However, if the blockade lasts longer than the loss, it will cause certain uncertainties to market demand and paper price. However, we are optimistic about the future demand for wrapping paper. “
Since the lock up order, the supply of raw materials has been greatly affected, so the production of seshasayee paper and boards, an Indian paper company, has also been suspended on March 24. P. K., vice president of the company’s market “At present, it is difficult to predict the fluctuation of paper price, which has an impact on dealers, wholesalers and retailers, and the market situation after the lifting of the blockade is not clear. However, it can be expected that demand will pick up within 10 to 15 days after the opening of the market,” Mr. vasist explained
Although the government notice indicates that papermaking is a necessary industry closely related to life, there are also paper factories (such as paswara paper) that many workers are reluctant to work due to the outbreak and want to be isolated at home to ensure safety. In addition, other necessities such as fuel, coal and chemicals were also in short supply during the embargo.
In addition, paper mills are particularly concerned about the overhaul and maintenance of idle paper machines. Cleaning and maintenance of plants and machinery is a continuous and planned process, but the epidemic has damaged this process, which may cause the loss of fixed assets in the paper plant.
Therefore, the enterprise hopes that the government can make up for the loss of the enterprise to a large extent. In order to deal with the problems that the paper factory may face after 21 days, the Indian newsprint Manufacturers Association has also written to the governments of various states, proposing that the paper industry is a necessary industry for life, and hoping to provide help for the subsequent production and operation of the paper enterprise.
Faced with operational difficulties after 21 days of downtime for newsprint producers in some states, the federal government instructed states to declare paper production a basic service.
Comment: India’s “closure” has had a serious impact on all walks of life in the region, especially on the supply chain of paper mills, causing huge losses to enterprises. In the case of limited production, the price increase of finished paper is also expected.


Post time: Apr-13-2020

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