From: The Times of India
Riots in Muzaffarnagar scorch region's flourishing paper industry
Arunav Sinha, TNN | Sep 12, 2013, 01.42 PM IST
LUCKNOW: The flames of the recent communal clashes in Muzaffarnagar seem to have burned a hole in the pocket of the paper industry of districts supplying in bulk — not only to the eastern part of Uttar Pradesh, but also to the National Capital Region.
Going by conservative estimates, the losses incurred by the paper industry in this western district of Uttar Pradesh are nearly Rs 8 crore per day. Roughly, the loss figures for the paper industry translate to Rs 40 crore since Friday (September 6).
The paper industry in Muzaffarnagar comprises of the production of primarily three types of paper — graph, duplex paper (which is used mostly by the packaging industry) and paper which is meant for writing and printing.
Giving more details about the losses, Ankur Bindal, a paper trader of the district, says, "It seems our problems would only increase with each passing day."
On an average, the daily loss suffered by the paper industry could be summarized as follows: Losses incurred by paper merchants on graph paper to the tune of Rs 5 crore per day; loss of Rs 1 crore per day in duplex paper and of more than Rs 2 crore per day in paper meant for writing and printing.
"Almost all the 28 paper mills/units in the district have not done any business since Friday (September 6). Some units stopped working by Saturday morning, since curfew was imposed.
"The daily tonnage of paper, in Muzaffarnagar ranges from 2,800 tonnes to 3,000 tonnes," said Bindal. He added that as many as 10,000 workers are employed in the paper industry of Muzaffarnagar, and it is yet not clear as to when workers would be able to resume work.
On whether there has been any delay in the delivery of the orders booked, Bindal said traders were keeping their fingers crossed, and hope that the situation returns to normalcy as soon as possible.
On the possibility of prices of paper going up, he said that generally, prices remain stable without frequent fluctuations.
As per the website of paperex-india.com, Indian paper industry is among the top 12 global players today, with an output of more than 13.5 million tonnes annually and an estimated turnover of Rs 35,000 crore.
The paper industry in India is improving with a strong demand push and is in expansion mode to meet the projected demand of 20 million tonnes by 2020. It is on a growth trajectory and expected to touch 8.5% GDP in the coming years from the present growth rate of 6.5%.
|
