Sme Corrugated Box Units Battling Against Closure

The packaging industry in India has been battlingas they are struggling to keep their prices low in
severe problems following the rise in input costsview of the rising overall manufacturing costs,”
faced by SME corrugated box manufacturing units. Asaid D Shah, proprietor of Bhagirath Boxes Private
large number of small-scale corrugated boxLtd, a small-sized corrugated box maker in
manufacturers are facing the imminent threat ofAhmedabad. Besides the sharp hike in the prices of
closure as they struggle to meet the hike in prices ofkraft paper, price of other inputs such as starch and
essential raw materials. Large-scale closure of SMEgalvanized wire have also increased manifold.
corrugated box manufacturing units is anticipated toFurthermore, the collective shutdown of plants by
hamper the growth prospects of the domesticthe paper mills is also affecting the SME corrugated
packaging sector. Rising input costs posing problemsbox manufacturing units. “The double whammy
Prices of kraft paper, which is the key raw materialof high input costs and shutdown of plants by mills
for the corrugated box manufacturing sector, haveproducing kraft paper have compounded the
shot up substantially in the recent past. Paper mills,problems faced by SME corrugated box
producing kraft paper, are planning further hike inmanufacturing companies,” said Sunil Kumar,
prices, which is expected to add to the existingproprietor of Alok Packaging Industries, a small-sized
woes of SME corrugated box manufacturers andcorrugated box manufacturer in Hyderabad. SME
suppliers. “Steady increase in the price of kraftcorrugated box makers fear that they will be
paper is leading to huge losses for corrugated boxcompelled to stall their operations, if this situation
manufacturers. It is also resulting in the erosion ofprevails for some more time.
competitiveness of the SME corrugated box makers