Express news service
KARUR: A sharp and frequent rise in the price of raw materials used by corrugated box manufacturing industries and the rise in the GST have raised concerns among manufacturers.
The industry, one of the most important, is facing a crisis due to several factors, including the shortage of paper, the drastic increase in the prices of raw materials, diesel and the GST. There are over 500 industries operating across the state.
As for Karur, there are around 40 factories operating in the district, employing more than 2,000 workers. The crises have threatened their livelihoods.
To Karthikeyan, a manufacturer of corrugated boxes from Thozhilpettai in Karur, said: “Production costs have reached an all time high due to the drastic rise in the price of raw materials, fuel expenses and revised GST, forcing many industries to go out of business. Over 60% of the boxes made here are sent to mosquito net and textile manufacturing and exporting industries in Karur district. And the remaining boxes made here are sent to neighboring districts including Tiruchy, Dindigul, Erode and Salem for food and pharmaceuticals. Thus, transportation is one of the predominant aspects of our business, but the drastic rise in fuel prices has left a huge dent in our livelihoods.
Paper mills have also raised the prices of Kraft paper, citing the shortage of coal and imported waste paper. This will eventually be reflected in the prices of other products and ultimately the consumer will be the one who is forced to shell out more money. We need a permanent solution from the government. “
South Indian Corrugated Box Manufacturers Association vice president S Thirumoorthi (Coimbatore branch) told TNIE: “The cost of raw materials, including paper, pins and glue, has increased from 15 to 20%. % recently. The rise has also been quite frequent. Due to the shortage of coal and containers, paper mills raised the price of paper. To make matters worse, the Union government recently increased the GST on corrugated boxes from 12% to 18%, which dealt manufacturers a heavy blow.
While the GST for corrugated boxes has been increased to 18 percent, the GST for paper remains at 12 percent. So we were forced to pay more. Adding that the Union government must either revise the GST rates and make them equal for paper and boxes, or reduce the rate to the previous 12 percent, he added, the government must take measures. Measures Stop the export of paper to other countries until the paper shortage is resolved.