Exempt import duty on kraft paper.

CHENNAI: The Chennai-based South India Corrugated Box Manufacturers’ Association (SICBMA) has appealed to the Central Government for import duty exemptions on Kraft Paper to save the dying industry from heavy losses and financial crisis.

Multiple price hike on Kraft Paper to the tune of Rs. 3000 to Rs 5,000 per tonne within a short span of one to two months in the recent past, delayed supply of the raw material and announcement of further price hike by the paper mills are said to be the reasons adding to the woes of the industry that already suffers crunch due to heavy competition and excess capacity in the industry. So it is very difficult for box manufacturers, mostly in small scale sector, to pass on the increase to their customers, the association said.

Also the recent budget, to the industry’s dismay, neither included any exemption in customs duty for import of Kraft Paper nor announced any benefits, subjecting the industry to the levy of import duty between 10 and 20 per cent.

Source : expressbuzz.com