India's writing and printing paper industry is experiencing significant margin pressure due to multiple factors affecting profitability. According to CareEdge Ratings, realisations in the segment have declined by 6-7% and are unlikely to see a meaningful recovery in the near term. As reported by CareEdge Ratings, the pressure is being driven by low-cost imports from China and other Asian countries, GST distortions that occurred in September 2025, and elevated input costs. Industry players, particularly non-integrated manufacturers, are expected to face continued pressure despite resilient demand conditions.
The industry is experiencing significant increases in key raw material costs that are impacting manufacturing economics. According to CareEdge Ratings, hardwood pulp prices have remained above $600 per metric tonne, while domestic wood prices have increased due to limited fibre availability and competition from other wood-based industries such as MDF manufacturing. Waste paper prices have shown substantial increases, rising from around ₹13,000 per metric tonne in FY21 to about ₹18,800 per metric tonne in FY26. Bamboo prices have also recovered to nearly ₹82,700 per metric tonne in 2025-26 after declining for several years.
Despite pricing challenges, the industry is expected to see modest volume growth supported by specific market segments. As reported by CareEdge Ratings, industry volumes could grow by around 3-4%, with demand from the education sector helping support volumes. However, profitability is likely to remain largely unchanged due to the sustained pressure on realisations. The ratings agency noted that the segment also faced additional challenges from freight volatility and supply chain disruptions linked to the West Asia crisis.
Domestic producers face significant constraints in passing higher costs to customers due to competitive market dynamics. According to CareEdge Ratings, domestic producers have limited ability to raise prices because doing so could affect demand and market share. The writing and printing paper segment is unlikely to face major disruptions due to water shortages and El Niño conditions, with manufacturers expected to prioritise supplies to the education-linked segment even if production adjustments are required elsewhere. The sector's resilience will depend on operational efficiencies and policy support as companies navigate this challenging pricing environment.
