New Delhi: Indian newspapers are struggling to get imported newsprint supply due to Russia-Ukraine war.

Russia accounts for almost 45% of Indian newsprint imports. Due to the Russia-Ukraine conflict, several major global shipping companies have closed bookings to and from Russian ports, leading to accumulation of newsprint containers there. The sanctions on Russian banks are expected to make business even more difficult.

Another fallout is runaway inflation, global energy prices (natural gas, coal) which accounts for about 30 percent of the cost of producing newsprint in paper mills.

Indian newsprint makers

Many domestic newsprint manufacturers are converting their mills to produce packaging materials due to the huge growth in e-commerce. Only a few Indian mills continue to produce newsprint. Even these mills are facing acute shortage of recycled fibre, which is obtained from old newspapers and sorted office papers. With waste paper production collapsed during COVID waves, traditional collection and sorting systems of recycled paper too dropped.

Price of imported newsprint doubled

Due to severe shortage in the supply of newsprint, the newsprint cost has reached high levels and the price of imported newsprint has already doubled from 450 dollars per tonne in 2019 to about 950 dollars per tonne. Newsprint usually accounts for about 40-50 percent of the cost of making a newspaper. Other materials such as ink, aluminium plates for printing and transportation costs are also becoming more expensive due to the global jump in commodity prices, adding further pressure to newspaper costs.

Representations to Govt. bear no fruits

The Government can help the newspaper industry through reduction of existing customs duty by 5 percent. Though representations were made to the Government, they are yet to bear fruit.