CBBS ( Corrugated boxes ) are used for secondary packaging in biscuit ,cakes and other baked goods to be transported to retailers . Its the cheapest form of packaging to the bakery manufacturers but for recent development corrugated box manufacturers are reeling under price increase in all front let it be kraft papers , labour ,fuel and transportation in India.
A report
CHENNAI: Sandwic hed between the kraft paper mills and the large consumers, the corrugated packaging industry is in dire straits again.
The industry’s major raw material, kraft paper, has been recently subjected to multiple, prohibitive and unprecedented price increases, resulting in making the corrugated packaging dearer by almost 25 per cent and the paper mills are planning for further hikes, in the coming weeks.
To aggravate the situation further, the prices of all other critical inputs of this industry have shot up substantially.
The starch prices have more than doubled in the last one year. The price of stitching wire has also gone up almost 40 per cent, primarily due to hikes in the cost of steel. The cost of labour has also gone up substantially.
It may be noted that corrugated packaging is required for safe transportation and distribution of almost all products of everyday use by a common man, be it milk, fruits and vegetables, engineering goods, textiles, consumer durables or medicine.
This industry is based completely on the recycled fibre base and has been adequately servicing the packaging needs of the country by successfully substituting the wooden packaging and contributing to the environmental protection and ecological balance.
Kirit Modi, President, Indian Corrugated Case Manufacturers Association (ICCMA), said, “The latest technology has recently been introduced in the country by upgrading the hitherto fragmented manufacturing process to fully automatic production lines, which is the benchmark of the packaging industry across the world.
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the expressbuzz
International corrugated industry impacted
Global pulp prices are heading towards record highs, threatening higher paper and packaging costs, as supply disruptions in some of the world's biggest producing countries coincide with a recovery in demand.
The simultaneous disruptions in Chile and Finland, which together account for more than 10 per cent of the world's pulp market, have tightened the market just when Chinese consumption is soaring, analysts say.
"There is a squeeze on the pulp market," says Linus Larsson, at SEB Enskilda in Stockholm.
Pulp is the raw material used to manufacture newsprint, fine paper, magazine paper, and cardboard
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http://www.ft.com/cms/s/0/be0e1872-309c-11df-a24b-00144feabdc0.html
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