New Delhi, August 13 (IANSlife) Indiscriminate import and dumping of newsprint paper is threatening the very survival of the domestic newsprint industry, says the Indian Newsprint Manufacturers Association (INMA), the apex body of newsprint manufacturers in India.
In the first quarter of the current fiscal year, as much as 85 percent of domestic demand for newsprint paper was met by imports while the country has adequate manufacturing capacities to meet the demand both in terms of quality and quantity. In a SOS communication to the Prime Minister, INMA has asked for urgent remedial measures to safeguard the interests of the industry.
"The adverse impact of dumping is so serious that currently no good orders are in place to keep the plants running, resulting in severe financial stress, endangering the continuity of the mill operations and retaining employment," INMA has said in a statement.
"Domestic newsprint production capacity was 2.6 million tonnes in FY 2014-15 but has come down to 2.2 million tonnes in view of continued challenging environment leading to closure of mills. However domestic capacities are still adequate to meet the domestic demand. There is an urgent need to curb dumping and other unfair trade practices operating in the industry," states INMA.
Due to imports being cheaper than the domestically manufactured newsprint product, during FY18 and FY19, domestic sales of newsprint stood at 1.2 million tonnes per annum which reduced drastically to 0.7 million tonnes in FY20 in view of dumping.
According to INMA, against the import price of $800 per tonne of newsprint in FY18, the news print is currently being dumped by exporters at $390-400 per tonne which is almost $250-300 per tonne cheaper than their home country sales price. With Covid pandemic leading to demand reduction worldwide, market intelligence points to dumping of newsprint paper at $350 per tonne.
INMA says it is not against legal import by actual users but against unfair trade practice being adopted by the exporters. As an urgent measure, INMA has asked for imposition of a five-year moratorium on newsprint imports, among other asks.
