Zero-Duty Imports and Fibre Shortages Threaten India's Wood-Positive Paper Industry Amid Green Packaging Shift

India's wood-positive paper industry confronts significant challenges from zero-duty imports and acute fibre shortages as demand surges for sustainable packaging. The sector, which has planted more trees than it harvests, now risks stunted growth due to unfair competition and supply constraints.

Industry leaders highlight how duty-free imports of paper and pulp undercut local producers, eroding investments in domestic capacity. P. R. Rajendran, Chairman of Tamil Nadu Paper Mills Association, warns that continued zero-duty regime could dismantle the industry's viability, leading to job losses and reduced tree plantation efforts.

Fibre availability remains critically low, with wood fibre meeting only 20-25% of demand while recycled fibre covers 60-65%. Bagasse contributes marginally at 10-12%. Experts advocate for policy reforms, including restoration of basic customs duty on paper imports and promotion of social forestry on non-forest lands.

The rapid shift to green packaging amplifies pressure, as brands prioritize eco-friendly alternatives. Without government intervention to secure fibre supply and protect against dumping, the industry's wood-positive status—planting 2.2 million hectares since 1951—hangs in balance.

Stakeholders urge incentives for captive plantations and agro-forestry to bridge the gap. The Indian Paper Manufacturers Association (IPMA) emphasizes sustainable sourcing to support the green transition without compromising competitiveness.