Himachal Pradesh (HP) corrugation industry is going through its worst phase with over 250 corrugators being in a state of severe crisis, said Mukesh Jain, president of Himachal Pradesh Corrugation Box Manufacturers Association (HPCBMA), while briefing a press conference here on Wednesday.
Jain said, since the past 2-3 months, paper mills had hiked their prices by Rs 3,000- 4,000 per ton, and were on the verge of closure.
With an abrupt hike in the price of kraft paper, the packaging industry in the state is going through tough times as it is unable to get a corresponding hike from its vendors, it was pointed.
"It has become impossible for corrugators to procure goods at higher prices and sell them at lower ones. Owing to this, half of the units in the region have shut down and many more are on the verge of it," said Jain.
He urged government interference in the matter in accordance with the Competition Act, which would in turn help corrugators to procure materials in time, thus saving the industry.
He further stressed upon an urgent need to constitute a paper-regulatory authority to control an abrupt hike in the price of paper by mills of north and south India.
Nirmal Singla, president of Baddi-Barotiwala-Nalagarh chapter of HPCBMA said raw materials other than paper, such as adhesives, stitiching wires, ink, and others, have witnessed an increase by 15-20%.
Apart from this, the transport cost has also inflated due to hike in diesel prices, he further said, adding that corrugation industry was a labour-oriented industry, and due to increase in minimum wages, the conversion cost as a whole had increased significantly.