COIMBATORE: The South Indian Corrugated Box Manufacturers Association (SICBMA), Coimbatore chapter, has announced a 20% increase in corrugated carton box prices, citing steep and repeated hikes in kraft paper rates, higher input costs, and tighter cash flow due to GST and revised payment terms.
SICBMA Coimbatore chapter vice-president P Kathirvelu said kraft paper — the primary raw material for corrugated box production — saw three price increases between Aug 12 and Sept 5. He said the price per tonne rose from Rs 31,000 to Rs 35,000- 38,000, while 28 BF kraft paper increased from Rs 30 per kg to Rs 38.5 per kg, a jump of Rs 9 per kg in two months. Kathirvelu said mills that earlier allowed 30–60 days for payments are now insisting on full payment within seven days, intensifying working-capital pressure for box makers. He flagged GST-related stress, stating that manufacturers buy inputs by paying 18% GST but sell finished boxes at 5%, leaving 13% blocked as input tax credit with the govt. He said other inputs such as ink, staples and bundling tape have become costlier, while labour costs have risen from Rs 700 to Rs 1,200. Kathirvelu said the industry was compelled to consider a 25% hike but limited the increase to 20%.
He said GST refunds are pending for around seven months, pushing several units into financial strain. he said manufacturers have requested paper mills to rein in further increases While mills have cited geopolitical tensions in the Middle East for the price rise. He added that supply from paper mills has also declined.