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Kraft Paper Mills Demand Abolishing Of Customs Duty.


Date: 17-02-2011
Subject: Kraft Paper Mills Demand Abolishing Of Customs Duty
Chennai, (PTI) The South India Kraft Paper Mills Association today demanded that the Centre should abolish the 5.2 per cent customs duty and four per cent countervailing duty imposed on the industry, as it was adversely affecting the industry.

The association President Rabinder Saod said, "In view of the steep increase in the input costs, the industry body is urging the central government to abolish Customs Duty of 5.2 per cent and Countervailing Duty of 4 per cent to help them keep their heads above water."

There has been around 69 per cent rise in the cost of imported raw material in the last 12 months from about Rs 9,700 to over Rs 16,400 a tonne, Saod added.

Also, the costs of chemicals, power and other input materials have also increased, he said.

The Mills, which provides direct and indirect employment to three lakh people, are being forced to increase selling price of Kraft paper by Rs 2,000 to Rs 3,000 per tonne in the coming weeks.

There are over 100 Kraft paper mills in South India, producing over 10 lakh tonnes of Kraft paper annually.

Source : news.in.msn.com

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