Paper prices rise on high demand

Since the economy reopened amid the coronavirus pandemic, the country’s increasing appetite for papers pushed up prices by as much as Tk 12,000 per tonne, industry insiders say.

The last quarter of the year, October, November and December, is the busiest time for the paper and printing industry.

Local mills produce papers for writing and printing, offset paper, newsprint, packaging paper, duplex board, liner paper, sticker paper, security paper and various types of tissue paper.

Industry insiders say 70-80 per cent of their products are used for writing and printing. Bangladesh Paper Mills Association (BPMA) said the country has over 100 paper mills capable of producing more than 15 lakh tonnes of paper and paper products annually.

Resumption of educational institutions has propelled the demand to a great extent, they add.

Md Humayoun Kabir, the owner of Mohammadia Paper Store at Nayabazar, told The Business Post that the prices had shot up to Tk 10,000-12,000 per tonne on high demand.

There is a sudden surge in demand because the pandemic affected works last year, he said.

Md shahid Serneabat, chairman of Bangladesh Mudran Shilpa Samity, told The Business Post that they usually produced papers worth around Tk 8,000 crore. Around half went to the National Curriculum and Textbook Board (NCTB) and various publishing organisations and educational accessories. The rest went for making calendars, diaries, annual reports and cards.

“We used to make around Tk 1,200 crore in profit every season,” he said.

Md Feroz Ahmed, the owner of Creative Paper Mills Ltd, said that he sold around 1,000 tonnes of paper last year to NCTB, but he could not sell a single tonne this year. Ahmed alleged that most traders are buying low-grade papers.

Md Abul Kalam Sumon, owner of Falguni Traders at Nayabazar, said books printed by NCTB for free distribution among students require nearly 50,000-60,000 tonnes of paper annually.

Md Younus Ali Khan of Karatoa Paper Depot in Bogura said that Union Parishad elections had also contributed to the rising demand for papers.

Md Masudur Rahman, executive director (sales) of Bashundhara Paper Mills Ltd, said that the market price had gone up on supply crunch but the situation would become normal within a week.