First tariffs and now War drives up raw material cost of paper and packaging material
Due to the war between Ukraine - Russia and now Iran - USA, plus the trade wars and tariffs between USA and other countries threaten to cause shortages of products. Rising energy and fuel costs, along with damaged supply chains, have forced paper mills to raise prices, affecting packaging and printing sectors.
Supply Chain Disruption: India depends on imports for papermaking, and the war halted supplies of raw materials, creating severe shortages.
Price Increases: Paper prices in India increased from Rs 70,000 to Rs 1,00,000 per tonne, with suppliers struggling to fill orders.
Wider Industry Impact: The crisis has extended to packaging materials for FMCG and e-commerce industries.