India’s Paper Sector Calls For Raw‑Material Security And Stricter Import Controls

New Delhi: The paper industry in India is facing major challenges, including a shortage of raw materials, particularly wood, low recycling rates, and high operating costs that hinder effective recycling. Only about 20 % of paper waste is currently being collected for recycling, worsening the sector’s challenges. As the industry grapples with these significant hurdles, the industry leaders have appealed to the central government to guarantee a steady supply of wood, pulp and agricultural residues, and to curb the import of finished paper that is undercutting domestic producers. 

The surge of cheap imports, particularly from China and ASEAN nations, has led to the closure of many mills, with roughly 200 of the country’s 900 paper units now idle. Furthermore, the Indian Paper Manufacturers Association (IPMA) has urged the implementation of non‑tariff barriers such as Quality Control Orders (QCOs) on imported paper, ensuring that only high‑quality products enter the market. 

Addressing the 17th Paperex 2025 in Delhi, IPMA President Pawan Agarwal stated that only about 20 % of paper waste is being recovered, urging the centre to set up a strengthened collection and recycling mechanism and to impose QCOs on paper imports. He added that the industry is ready to buy agricultural stubble at Rs 3 per kg, a move which is expected to curb stubble burning while providing farmers with an extra income source .

The four‑day expo, backed by the World Paper Forum, attracted 675 exhibitors from 28 nations and over 33,000 trade visitors. Union Minister of State for Power and New & Renewable Energy Shripad Yesso Naik, who virtually attended the event, outlined that demand is growing 7‑8 % annually and capacity is slated to rise from 24 million tonnes to 32 million tonnes by 2030, describing the sector’s importance for rural jobs and MSME growth .

Yogesh Mudras, MD of Informa Markets in India, noted that per‑capita paper consumption in India sits at just 15 kg versus the global average of 57 kg, signalling huge growth potential, with the market projected to reach US$16.64 billion by 2028 . “The paper and packaging industry is being transformed by innovation, sustainability and India's rapidly expanding demand landscape. This sector demonstrates exceptional circularity, recycling nearly 68% of all materials while investing steadily in sustainable forestry and carbon-neutral processes. With consumption expected to reach 23.5 million tonnes, India's per-capita usage of 15 kg remains significantly below the global average of 57 kg, presenting immense growth potential. The market's projected growth to USD 16.64 billion by 2028 underscores this momentum,” he said. 

The industry leaders are calling for immediate policy support, in allocating degraded land for plantation to renegotiating free‑trade agreements that allow dumping of low‑priced paper, to revive the sector’s competitiveness and safeguard rural livelihoods .