Corrugated box manufacturers seek customer support as input costs and working-capital pressure mount
Chennai, October 6: Kraft paper prices, the key raw material for corrugated box manufacturing, have increased by around 25% since mid-July 2026, with prices revised seven times in about ten weeks, according to the South India Corrugated Box Manufacturers’ Association (SICBMA).
The association said the cumulative increase works out to around ₹8,000 per tonne, with the latest revision coming into effect on October 1. If the present trend continues, the overall increase could reach around 35% in the coming weeks, it said.
SICBMA attributed the price pressure to rising fuel, coal and polymer costs, along with supply and logistics disruptions affecting the availability and movement of imported and domestic waste paper amid geopolitical tensions. The industry is also facing higher costs for glue, stitching wire, printing consumables, laminating film, electricity, fuel and other production inputs, further squeezing manufacturers’ margins.
The association also highlighted the impact of the inverted GST structure, under which kraft paper attracts 18% GST, while corrugated cartons and boxes attract 5% GST. SICBMA said the differential is resulting in accumulation of input tax credit and putting additional pressure on manufacturers’ working capital.
SICBMA President Ms. Prabha Manjunath said:
“Our members have absorbed successive increases in kraft paper and other inputs, but the pressure has now reached a level that cannot be contained at the manufacturing stage. We request customers to understand the genuine market situation and work with their suppliers on sustainable and fair pricing.”
SICBMA appealed to customers and procurement teams to plan carton requirements in advance, consider prevailing raw-material prices while evaluating quotations and cooperate with manufacturers on necessary price revisions.
The association said it would continue to monitor raw-material prices and market conditions and represent the concerns of the corrugated packaging industry before relevant stakeholders
