In recent years, the Indian market’s demand for recycled based paper has been sluggish. Some industry insiders said that this was mainly caused by overcapacity. Overproduction of kraft paper has led to a decline in market prices, and overcapacity is not conducive to the healthy development of the industry. Regarding this, Mr. Vijay Shekhar, Chairman of the South Indian Kraft Paper Manufacturers Association (SIKPMA), said: In the next five years, it is expected that the demand for packaging paper in India will increase by 9% -10%, but the increase in production capacity is expected to exceed 10%. In the southern region of India alone, approximately 700000 tons of packaging paper production capacity will be put into operation in the next two years. Therefore, in the coming years, India may face overcapacity in packaging paper production and a relatively sluggish market. Therefore, we must overcome this situation by improving quality and expanding exports. Therefore, we aim to We need to focus on improving quality rather than quantity

Many Indian paper mills also acknowledge this, Mr. Shekhar, General Manager of Vamshadara Paper Mill in India, also added: At present, India is going through a very difficult stage, with energy costs at their highest levels in history, and raw materials and environmental issues are plaguing the Indian paper industry. Raw material safety is one of the most important areas that the industry needs to pay attention to, and due to the continuous increase in production capacity, the supply of raw materials is decreasing. In addition, in the past few years, raw material imports have also declined, so we need to increase the recycling capacity of waste paper or find alternatives Natural raw materials. At present, the recycling rate of recycled fibers available for papermaking in India is only about 45% -50%, while some overseas markets can reach 70% -90%. Therefore, the Indian paper industry still needs to continue its efforts

In addition, some paper mill managers have also stated that India can try to make up for the shortage of raw materials by improving the recycling of agricultural waste, further improving black liquor treatment technology, and enabling more small and medium-sized paper mills to improve the efficiency of agricultural waste utilization. Energy is the second largest cost of papermaking in India, with energy costs rising by nearly 10% in the past year or more, reducing industry profit margins. Therefore, efforts need to be made to reduce energy costs in production costs, and many paper companies also hope that the Indian government can support industrial development in the form of technology upgrading funds, help small enterprises increase technological investment, and cope with increasing energy costs.