Rise in domestic newsprint prices: 'Movement is cost-driven and industry-wide'

The debate over rising newsprint costs has acquired another layer. Days after the Indian Newspaper Society (INS) flagged a sharp increase in domestic newsprint prices alongside rising import costs, one of India's major domestic producers has responded to concerns over the increase, saying the movement in domestic prices is cost-driven and industry-wide.

According to the Indian Newspaper Society, the Indian newspaper industry consumes nearly 1.3 million tonnes of newsprint annually, while domestic production is around 500,000 tonnes. Key domestic producers include Emami Paper Mills (Odisha), Khanna Paper Mills (Punjab), and the government-owned Hindustan Newsprint (Kerala) and NEPA (MP).

e4m wrote to all major players and the Indian Newsprint Manufacturers Association (INMA) to understand how inflation is impacting them. INMA General Secretary Vijay Kumar says, “The association does not track the market prices therefore we will not be able to comment.” 

Read e4m report on increase in publishers’ burden

While other manufacturers did not respond, Emami Paper Mills, which produces around 75,000 metric tonnes (MT) of newsprint annually, says several input and financing costs are weighing on manufacturers.

S K Khetan, Whole-time Director & CEO, Emami Paper Mills Ltd, told e4m that domestic newsprint currently trades at around ₹58–62 per kg ex-mill, depending on GSM, quality and location. According to Khetan, “Domestic newsprint prices remain below the levels seen in FY2022-23, even as manufacturers continue to face pressure from multiple cost heads.”

“The movement is largely cost-driven & industry-wide,” Khetan said. He pointed to four key pressures, “The depreciation of the rupee, higher costs of imported fibre and chemicals, the high cost of capital, and increased shipping and logistics expenses arising from the situation in the Gulf region.”

The development comes at a sensitive point for publishers, who are already dealing with higher imported newsprint prices, a weaker rupee and elevated freight costs, while their ability to pass on the increase remains constrained by a competitive advertising market.

Indian Newspaper Society (INS) Chief Vivek Gupta had told e4m earlier that domestic newsprint prices had risen by 30-40% since March “without any reasons”, with prices of imported and domestic newsprint increasingly converging. Emami, however, disputes the broader implication that domestic producers have simply used the disruption in global markets to raise prices.

For publishers, the distinction between the different cost pressures does little to change the immediate impact. Newsprint remains one of their largest operating expenses, and higher procurement costs put pressure on margins.

One of the sharper claims made by the INS was that the traditional price advantage enjoyed by domestic newsprint had narrowed significantly, with domestic and imported newsprint reportedly costing around ₹65–68 per kg.

Emami takes a different view. Khetan said domestic newsprint continues to remain competitive and is always cheaper than imported newsprint, although the differential changes depending on global newsprint prices and currency movements.

India has enough capacity: INMA 

INMA Secretary General Kumar insists, “We have sufficient capacity to meet the entire domestic demand. Since the newsprint has specific end use and to be sold to actual users only, therefore, production takes place entirely based on actual confirmed orders from the consumers.”

Publishers, however, argue that the price comparison cannot be made on cost alone. They maintain that domestically produced newsprint does not consistently match the quality of imported grades, particularly for high-speed newspaper printing. As a result, many publications use imported paper for premium applications and domestic newsprint largely for inside pages. Domestic newsprint can account for more than 30–40% of an edition, depending on the publication and its paper requirements.

Vivek Gupta also raises concerns over quality standards in the domestic market. He alleges that some domestic producers pass off lower-quality newsprint as Grade 1, making it difficult for publishers to assess the true price-quality differential. The allegation could not be independently verified by e4m, and domestic manufacturers have disputed the broader narrative that local newsprint is inherently inferior.

The quality argument is not entirely new. The INS has previously pointed to a gap between domestic and imported newsprint, including differences in grades and quality, while its latest annual report flags “quality issues” and the limited availability of certain lower-GSM products in the domestic market.

The result is a market where publishers and manufacturers view the same price movement differently. Publishers see domestic price increases as an additional burden at a time when imported newsprint is already becoming more expensive. Domestic manufacturers, meanwhile, say they are operating within the same inflationary and geopolitical environment and cannot absorb rising input and financing costs indefinitely.

Can prices moderate?

For publishers hoping that the domestic market will provide some relief from the global newsprint shock, Emami offers little immediate clarity.

Asked whether domestic prices could moderate in the coming months, Khetan said the outlook remains difficult to predict. “Given the prevailing geopolitical situation and uncertain international market conditions, it would be difficult to forecast future price movements at this stage,” he said.

That uncertainty leaves publishers facing a difficult equation. Imported newsprint remains vulnerable to currency, freight and geopolitical developments. Domestic newsprint may offer a lower-cost alternative, but manufacturers say they too are facing higher input and financing costs.

For an industry already operating in a competitive advertising market, the question is therefore no longer simply whether domestic or imported newsprint is cheaper. It is also about the price-quality trade-off and how much of the increase publishers can absorb.