{"id":23665,"date":"2026-10-05T07:06:34","date_gmt":"2026-10-05T07:06:34","guid":{"rendered":"https:\/\/cpmirror.com\/?p=23665"},"modified":"2026-10-05T07:06:35","modified_gmt":"2026-10-05T07:06:35","slug":"hcbma-issues-comprehensive-advisory-on-rising-packaging-input-costs-and-kraft-paper-prices","status":"publish","type":"post","link":"https:\/\/cpmirror.com\/index.php\/2026\/10\/05\/hcbma-issues-comprehensive-advisory-on-rising-packaging-input-costs-and-kraft-paper-prices\/","title":{"rendered":"HCBMA Issues Comprehensive Advisory on Rising Packaging Input Costs and Kraft Paper Prices"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Association Warns of Further Cost Pressure; Calls for Advance Planning, Disciplined Pricing and Cautious Commercial Commitments<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Haryana Corrugated Box Manufacturers Association (HCBMA)<\/strong> has issued a comprehensive industry advisory highlighting a sharp rise in packaging input costs, tightening availability of key raw materials and the possibility of further price escalation in the coming weeks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HCBMA\u2019s <strong>Paper Mill Coordination Committee (PMCC)<\/strong> is continuously monitoring developments in the paper and packaging raw-material markets across India through interactions with paper mills, industry stakeholders and regional associations. The association has observed sustained upward pressure across both direct and indirect cost components of packaging manufacturing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to <strong>HCBMA Advisory No. 014 dated September 30, 2026<\/strong>, the prevailing global geopolitical situation and continued uncertainty are placing substantial pressure on the packaging supply chain.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>28\u201335% Increase in Direct Costs<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HCBMA has compared input costs between <strong>July 20, 2026 and September 30, 2026<\/strong> and estimates that direct packaging costs have increased by approximately <strong>28\u201335%<\/strong>, while indirect costs have risen by around <strong>22\u201325%<\/strong>. The association estimates the resulting <strong>net impact on the final product at approximately 22\u201324%<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For corrugated packaging manufacturers, the situation is particularly significant because <strong>Kraft paper accounts for approximately 65\u201375% of the manufacturing cost of a corrugated box<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kraft paper prices alone have increased by <strong>more than 15% over the past six weeks<\/strong>, according to HCBMA&#8217;s earlier market assessment, while the market continues to remain firm.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Multiple Factors Driving the Cost Increase<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HCBMA has identified a combination of direct and indirect factors contributing to the current escalation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Direct-impact factors include:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Kraft paper, Duplex, FBB and other paper grades<\/li>\n\n\n\n<li>Adhesives<\/li>\n\n\n\n<li>Printing inks<\/li>\n\n\n\n<li>Lamination films and coatings<\/li>\n\n\n\n<li>Gas and chemicals<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Indirect-impact factors include:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Shipping and logistics<\/li>\n\n\n\n<li>Coal, gas and petroleum<\/li>\n\n\n\n<li>Imported waste paper, pulp and chemicals<\/li>\n\n\n\n<li>Currency-related cost increases<\/li>\n\n\n\n<li>International freight and courier costs<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The association has also highlighted a rise in <strong>international Kraft Liner prices of more than 20%<\/strong>, along with reduced global production capacity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Waste Paper and Kraft Paper Availability Under Pressure<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rising prices are being accompanied by increasing uncertainty over raw-material availability. Imported OCC and other waste-paper prices have increased amid tighter availability, while domestic waste-paper costs have also continued to rise.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Higher export demand is adding further pressure on domestic availability. HCBMA has also observed increasing mill lead times, with some mills restricting or temporarily stopping fresh orders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These developments have made advance procurement planning increasingly important for corrugated box manufacturers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Additional Pressure on Manufacturing Costs<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The impact is not limited to paper and basic raw materials. Corrugated manufacturers are also facing increases in the cost of <strong>starch, fuel, packing materials and other production inputs<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The industry is simultaneously experiencing working-capital pressure arising from the <strong>GST inverted duty structure<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Imported machinery spares and consumables have also become substantially more expensive due to currency movements, international freight and higher courier costs. Certain essential items, including <strong>blades, have reportedly witnessed increases of more than 200%<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Together, these factors are placing additional pressure on manufacturers&#8217; operating costs and margins.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cManufacturers Cannot Continue Absorbing the Increase\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Mr. Sunny Jain, President \u2013 HCBMA<\/strong>, said:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cThe current situation is a matter of serious concern for the corrugated packaging industry. Kraft paper is the largest cost component in box manufacturing, and the sustained increase in paper prices, together with rising energy, chemicals, logistics and other input costs, cannot be absorbed by manufacturers indefinitely. We therefore urge our members to adopt a disciplined and cautious approach to costing, procurement and order commitments. The priority should be to maintain sustainable and commercially viable operations rather than chase turnover at the expense of margins.\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He added:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cWe also encourage manufacturers to remain in close coordination with their paper suppliers, assess their actual replacement costs and communicate transparently with customers wherever exceptional raw-material movements materially affect previously quoted prices. HCBMA and its Paper Mill Coordination Committee will continue monitoring the market and keep the industry informed of significant developments.\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>HCBMA Advises Members to Review Costing and Commitments<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In view of the continuing volatility, HCBMA has advised members to take immediate and prudent commercial action.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Advance procurement planning:<\/strong><br>Members should plan paper and other raw-material requirements well in advance, wherever commercially feasible, to reduce exposure to sudden price movements and supply constraints.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Rework costing before quoting:<\/strong><br>Manufacturers should thoroughly review their costing before submitting new quotations. Current <strong>replacement costs<\/strong>, rather than only historical purchase prices, should be considered.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Review existing quotations and orders:<\/strong><br>Pending orders, existing quotations and customer rates should be reassessed in light of the changed market conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Exercise caution with fixed-price contracts:<\/strong><br>Long-duration and fixed-price orders should be accepted only after carefully evaluating the risk of further increases in paper and other input costs. Appropriate commercial provisions should be incorporated wherever feasible.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Avoid unsustainable margins:<\/strong><br>Members are advised not to accept business at rates that fail to adequately cover current and foreseeable costs. Under-costing today could translate into significant losses when orders are executed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Maintain supplier coordination:<\/strong><br>Regular communication with paper suppliers is essential to monitor confirmed orders, lead times, availability, future requirements and procurement schedules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Review working capital and inventory:<\/strong><br>The sharp increase in raw-material costs makes it important to reassess inventory requirements and working-capital needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Communicate with customers:<\/strong><br>Where quotations were issued substantially earlier and market conditions have changed materially, manufacturers should transparently communicate the impact of exceptional raw-material price movements to customers wherever appropriate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Price Adjustments May Become Necessary<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HCBMA has emphasised that the present cost escalation cannot be treated as a short-term fluctuation. Continued global uncertainty, geopolitical developments and movements in crude oil and energy prices could create additional pressure on paper, chemicals, adhesives, inks, transportation and other essential inputs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To sustain operations and ensure an uninterrupted supply of quality packaging products, <strong>necessary price adjustments may therefore become unavoidable<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The association has cautioned manufacturers against waiting for the market to stabilise before taking corrective commercial action.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Commercial Discipline Over Price Competition<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HCBMA has called upon the corrugated packaging industry to avoid unnecessary price competition during the current period of volatility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The association stressed that the objective should be to secure <strong>commercially viable and sustainable business<\/strong>, rather than increase turnover by compromising margins.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The current market environment requires:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>ADVANCE PLANNING + ACCURATE COSTING + DISCIPLINED PRICING + CAUTIOUS COMMITMENTS<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>PMCC to Continue Monitoring the Market<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HCBMA\u2019s <strong>Paper Mill Coordination Committee (PMCC)<\/strong> will continue to closely monitor Kraft paper prices, availability and broader packaging input costs across India and share significant developments with members.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The association reiterated its commitment to keeping the corrugated packaging fraternity informed and working towards safeguarding the collective interests of the industry during this challenging period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u2014 Team HCBMA<\/strong><br><strong>Haryana Corrugated Box Manufacturers Association<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Association Warns of Further Cost Pressure; Calls for Advance Planning, Disciplined Pricing and Cautious Commercial Commitments The Haryana Corrugated Box Manufacturers Association (HCBMA) has issued a comprehensive industry advisory highlighting a sharp rise in packaging input costs, tightening availability of key raw materials and the possibility of further price escalation in the coming weeks. HCBMA\u2019s<\/p>\n","protected":false},"author":1,"featured_media":23666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73,64],"tags":[1646,51],"class_list":["post-23665","post","type-post","status-publish","format-standard","has-post-thumbnail","category-india-south-asia","category-latest-news","tag-hcbma","tag-top-news"],"_links":{"self":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/23665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/comments?post=23665"}],"version-history":[{"count":1,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/23665\/revisions"}],"predecessor-version":[{"id":23667,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/23665\/revisions\/23667"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/media\/23666"}],"wp:attachment":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/media?parent=23665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/categories?post=23665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/tags?post=23665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}