The Indian Paper Manufacturers Association (IPMA) has voiced serious concern over the sharp rise in paper and paperboard imports from ASEAN countries, warning that the trend is undermining the domestic industry.
Citing the latest data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S), IPMA said imports from ASEAN nations climbed 14 per cent in the first half of FY26, reaching 2.07 lakh tonnes compared to 1.82 lakh tonnes in the same period last year. ASEAN countries now account for over 20 per cent of India’s total paper and paperboard imports, which exceeded 2 million tonnes in FY25.
IPMA President Pawan Agarwal said the domestic industry has invested more than ₹30,000 crore in recent years to upgrade capacities, adopt green technologies, improve product quality, and promote agroforestry. These efforts, he said, are being threatened by predatory pricing and dumping, particularly from Indonesia and China.
The Association pointed out that duty concessions under trade agreements are aggravating the problem. Imports under the ASEAN-India Trade in Goods Agreement (AITIGA) attract zero duty, while Chinese paper enjoys a 30 per cent concession under the Asia Pacific Trade Agreement (APTA).
IPMA noted that export-centric economies like Indonesia and China are increasingly diverting their surplus production to India, helped by government subsidies and lower raw material costs. Indian mills, by contrast, depend largely on agroforestry-based sourcing from farmers at higher, market-driven costs.
The situation may deteriorate further as China and Indonesia are adding significant new manufacturing capacities, while import restrictions in the US and EU are pushing more exports toward India.
IPMA also flagged the recent GST exemption on uncoated paper used for notebooks and exercise books, which has effectively reduced IGST on imports to zero. This has widened the price gap for domestic producers, who face higher costs due to the reversal of input tax credit, while foreign exporters can ship products without IGST. The Association warned that this could trigger a surge in imports of uncoated paper as well as finished notebooks, severely affecting MSME manufacturers.
To restore a level playing field, IPMA has urged the government to invoke the termination clause of AITIGA if the ongoing review fails to address industry concerns. It has also been recommended that India consider withdrawing from APTA.
