PAPER INDUSTRY



Published on 18 Feb 2025

The pulp and paper industry comprises companies that use wood as raw material and produce pulp, paper, paperboard, and other cellulose-based products.

Locational factors of the Industry

  • Raw Material Proximity:  Ideally located near bamboo or softwood sources  

    • Example: South Gujarat, Odisha, Madhya Pradesh

  • Balancing Factors:  Coal availability can offset raw material distance, impacting transportation costs  

    • Example:Paper mills near coal in Bengal

  • Market Access:  Some mills prioritize proximity to markets with cheap labour

    • Example: Kolkata with access to raw materials from Northeast India

  • Clean Water Supply: Abundant, clean water free from pollutants is crucial, often placing mills near forests with unpolluted rivers.

Paper Industry: comaprison and distribution

  • It is dominated by North American, Northern European, and East Asian countries.

Advantages of the Indian paper industry

  • As compared to the western countries growth cycle of Indian tropical forests is 6 to 7 years whereas the growth of conifers of the west requires 50 years.

  • Labour is cheap in India as compared to the Western world. Besides that Indian manpower of this industry is well trained and produces good quality paper with relatively low manpower cost.

  • Among the paper-producing states of India, West Bengal, Orissa Madhya Pradesh, Andhra Pradesh, Maharashtra and Karnataka constitute nearly 65% of the total production capacity.





Challenges faced by Paper Industry

  • Raw Material Scarcity: Limited and unreliable supplies of bamboo and sabai grass.

  • Rising Production Costs: High costs for equipment, power, coal, royalties, and transportation.

  • Unstable Policies: Fluctuations in government royalty rates and lease terms create uncertainty.

  • Excess Capacity & Idle Mills: Over-expansion in the 1970s led to surplus capacity and underutilized mills.

  • Technological Lag: Limited research and development hinder the use of unconventional materials and advanced technologies.

  • Environmental Concerns: Deforestation and river pollution due to effluent disposal raise environmental complications.

  • Small Mill Size: The average paper mill size in India is significantly smaller than those in Southeast Asia and the Asia-Pacific region.

  • Limited Recycled Material Use: India falls short of the global average in using recycled paper, presenting an opportunity for improvement.

Measures to tackle challenges

  • Diversifying Raw Materials: Shifting from bamboo to eucalyptus, wattle, mulberry wood, and agricultural residues.

  • Recycling and Eco-friendly Practices: Increased use of recycled fibre and adoption of sustainable production methods.

    • Example: Finland and Sweden heavily recycle paper. Strong recycling systems, awareness, and laws reduce virgin fiber use and environmental harm.

  • Social & Farm Forestry: Promoting plantation forestry programs to improve raw material availability.

  • Leveraging Advantages: India's faster-growing plantations and lower labour costs offer a competitive edge.

  • Technological Upgradation: Modernization is crucial but requires significant investment from private players.

  • Bagasse Utilization: Encouraging sugar mills to use coal instead of bagasse for boilers, freeing up bagasse for paper production.

    • Example: Brazilian sugar mills turn bagasse into paper, reducing wood pulp use and benefiting the sugarcane industry.

Tags:
Geography

Keywords:
PAPER INDUSTRY Locational factors of the paper Industry Paper Industry: comaprison and distribution Advantages of the Indian paper industry Challenges faced by Paper Industry Measures to tackle challenges in paper industry

Syllabus:
General Studies Paper 1

Topics:
Resources Distribution

Related Articles

No data found