The Indian Paper Manufacturers Association (IPMA) has urged the Prime Minister to intervene urgently over rising coal prices, inadequate supplies and irregular railway rake availability, warning that the situation is putting paper mill operations across the country under severe pressure.
According to IPMA, coal prices have increased by more than 50% over the past two months, raising concerns that some paper mills may be forced to suspend production due to rising operating costs and commercial unviability.
In its representation to the Prime Minister, the Association has requested priority coal allocation for captive power plants operated by the pulp and paper industry, along with assured railway rake availability on par with thermal power plants. It has also called for regular allocation of at least 75% of the coal quantities covered under Fuel Supply Agreements (FSAs) or existing linkages.
Energy accounts for approximately 15–20% of the total cost of paper production, making the recent surge in coal prices a significant challenge for manufacturers. The industry is already facing intense competition from imported paper and paperboard products, further limiting domestic producers’ ability to absorb higher production expenses or pass them on to customers.
IPMA President Pawan Agarwal highlighted that uninterrupted coal supplies are essential for maintaining continuous steam and electricity generation at paper mills. He noted that uncertainty in fuel availability directly affects production operations and called for immediate government intervention to prevent further disruptions.
Agarwal also emphasised that domestic paper manufacturers are facing mounting pressure from rising input costs and low-priced imports, leaving their profit margins and operational viability increasingly vulnerable. He stated that dependable linkage coal supplies and adequate railway transportation would provide much-needed relief to the sector.
The Association has urged the government to address the coal supply constraints and transportation challenges to ensure stable operations, protect domestic manufacturing capacity and maintain the competitiveness of India’s pulp and paper industry.