Paper stks up 17% as govt fixes price on packaging imports
Shares of paper companies surged up to 17% on Monday after the central government imposed a Minimum Import Price (MIP) on Virgin Multi-layer Paper Board (VMPB), a key packaging material. The move is aimed at curbing cheaper imports and protecting domestic producers.
JK Paper jumped 15% to Rs 401, Tamil Nadu Newsprint & Papers rose 16.6% to Rs 179.15, and West Coast Paper Mills advanced 14.3% to Rs 553.45. Andhra Paper gained 11% to Rs 82.21, while Orient Paper and Ruchira Paper added 6–10%.
The rally was accompanied by heavy volumes. JK Paper led with 90 lakh shares traded, far above its average. Tamil Nadu Newsprint & Papers clocked 35.2 lakh shares, while West Coast Paper saw 10.6 lakh shares.
Import curbs shift market balance In a notification, the Directorate General of Foreign Trade said the Minimum Import Price (MIP) on Virgin Multi-layer Paper Board will remain in effect until March 31, 2026. The move sets a floor on import costs, making low-priced overseas supplies less competitive and providing a price shield for domestic producers.
Indian paper makers have long complained about undercutting by cheaper imports, particularly from Indonesia and China. In June, the Indian Paper Manufacturers Association sought an anti-dumping probe into Indonesian supplies of the product.
Demand tailwinds build Virgin Multi-layer Paper Board is widely used in packaging for pharmaceuticals, consumer goods, food and beverages, electronics, cosmetics, liquor, and book publishing. Experts say the government’s move is likely to divert demand toward domestic producers as importers face higher costs.
Beyond policy support, stable raw material prices have helped paper makers maintain margins. Rising packaging demand ahead of the festive season, along with education sector reforms expected to boost textbook demand, add to the momentum. Ongoing capacity expansions are also set to improve supply, positioning paper stocks to benefit from a stronger demand cycle.
Also read | Tata Capital IPO likely next month but unlisted shares down 8% in 1 month
JK Paper jumped 15% to Rs 401, Tamil Nadu Newsprint & Papers rose 16.6% to Rs 179.15, and West Coast Paper Mills advanced 14.3% to Rs 553.45. Andhra Paper gained 11% to Rs 82.21, while Orient Paper and Ruchira Paper added 6–10%.
The rally was accompanied by heavy volumes. JK Paper led with 90 lakh shares traded, far above its average. Tamil Nadu Newsprint & Papers clocked 35.2 lakh shares, while West Coast Paper saw 10.6 lakh shares.
Import curbs shift market balance In a notification, the Directorate General of Foreign Trade said the Minimum Import Price (MIP) on Virgin Multi-layer Paper Board will remain in effect until March 31, 2026. The move sets a floor on import costs, making low-priced overseas supplies less competitive and providing a price shield for domestic producers.
Indian paper makers have long complained about undercutting by cheaper imports, particularly from Indonesia and China. In June, the Indian Paper Manufacturers Association sought an anti-dumping probe into Indonesian supplies of the product.
Demand tailwinds build Virgin Multi-layer Paper Board is widely used in packaging for pharmaceuticals, consumer goods, food and beverages, electronics, cosmetics, liquor, and book publishing. Experts say the government’s move is likely to divert demand toward domestic producers as importers face higher costs.
Beyond policy support, stable raw material prices have helped paper makers maintain margins. Rising packaging demand ahead of the festive season, along with education sector reforms expected to boost textbook demand, add to the momentum. Ongoing capacity expansions are also set to improve supply, positioning paper stocks to benefit from a stronger demand cycle.
Also read | Tata Capital IPO likely next month but unlisted shares down 8% in 1 month
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