The corrugated box industry in Himachal Pradesh is grappling with a sharp surge in input costs, prompting urgent calls for price revisions and policy support from manufacturers. The Himachal Pradesh Corrugated Box Manufacturers Association (PCBMA) president Aditya Sood warned on Thursday that rising expenses are pushing manufacturers into a crisis.
Industry Leaders Demand Immediate Intervention
Industry representatives, including Federation of Corrugated Box Manufacturers of India (FCBM) president Rajinder Bhatti, stressed that without immediate intervention, many small and medium units may struggle to survive. Bhatti highlighted that the cost of kraft paper, which constitutes nearly 80% of production expenses, has risen by 15%-20% in recent months. Other inputs like glue, ink, and adhesives have seen price surges of 30%-40%.
Additional Challenges Facing Manufacturers
Increased electricity tariffs, wage hikes, and logistical challenges, especially in Himachal Pradesh, have further strained operations. Bhatti added that the industry is also battling GST-related issues, particularly an inverted duty structure causing delays in refunds and blocking working capital. Additionally, LPG price hikes and shortages have reduced workforce availability by up to 30%.
The combination of these factors has created a perfect storm for the industry, which is a vital part of the state's economy. Manufacturers are calling on the government to address these issues urgently to prevent widespread closures and job losses.
