IPMA

YGOLONHCET

Paper Industry

versusR ealities

Myths

New Vistas explored by IPMA Members

Around 0.7 million hectares under pulp wood plantations, mainly degraded marginal lands of farmers

Multiple species worked upon- Eucalyptus, Casuarina, Lucena, Acacia etc

Successes in bio-technology based on research on Clonal multiplication

Successes in environment, energy & water conservation

IPMA represents the resurgent and organized face of paper sector in India. Large Integrated Paper Mills from private and

public sector with a product mix of all varieties of paper (writing, printing, packaging, speciality, paperboards and

newsprint) located in all regions and using conventional fibre such as wood and bamboo and also unconventional raw

materials like recyclable waste paper, agro-residues, viz. bagasse and wheat straw comprise the membership of IPMA in a

broad spectrum.

About Indian Paper Manufacturers Association (IPMA)

All-pervading myths continue to slur the image of the paper industry in

India. Perhaps topping the list is the perception that the industry

perpetually uses forest raw material and consequently denudes natural

forests of the country.

The truth is, in India, the paper industry is primarily rural based with close

linkages with farming community. Over the years it has evolved into an

agro-based industry from its earlier character of a forest-based industry.

Here is an attempt to set the record straight...

Myth

Paper industry isdenuding forests

RealityPaper industry in India is an agro and rural based industry and not a forest-

based one. Over the last decade and a half, industry led farm/social

forestry in collaboration with farmers have brought around 0.7 million

hectares under pulp wood plantations, mainly degraded marginal lands of

farmers. At the current estimate, industry is using 90 % of the total wood

requirement from agro/ farm forestry. Also, the industry initiative has

created major employment in the remote areas thereby, helping rural

development.

IPMA members have been winning international accolades at climate

change talks for agro-forestry initiative.

Paper industry cuts wood and disturbs ecological balance

Myth

For one, paper industry is wood positive. The industry grows more trees

through its agro-forestry initiative than it harvests. Moreover pulp and

paper industry consumes only 3% of the national requirement of wood

while major consumption is as fuel wood (89.5%) and timber (7.5%).

Reality

Paper is a sunset industry in India

Myth

Paper is a growing industry with large headroom for growth. The demand

projections show that the overall paper consumption scenario is projected

to increase to 23.5 million tons in 2024-25, in the baseline scenario. The

per capita consumption in India is low and is poised to increase with rise in

lifestyles. Every one kg incremental per capita consumption results in

additional demand of more than one million ton a year. The Indian paper

industry has potential and also capabilities to service the growing demand

and also to create huge employment avenues.

Reality

Paper industry is technologically outdated

Myth

Large integrated mills have set new benchmarks in technology

upgradation with state-of-the-art pulp and paper machines. An

investment of more than USD 5.0 billion has been made by the industry

during the last five years in capacity enhancement, technology

upgradation and various acquisitions.

Reality

Paper is not a priority sector inmanufacturing

Myth

Paper is a key manufacturing industry in India with large investments

already made and lined up. Also given the immense employment

potential, paper industry should rank high up on the priority list in Make-

in-India campaign of Government of India.

More than any other segment of manufacturing, paper industry has the

potential to play an important role in meeting the three national

objectives i.e. Education, Literacy, and Employment Generation – that too

in the rural areas and hence it is better placed to drive Government’s

initiatives.

Reality

Paper is an unsustainable industry

Myth

Integrated paper mills in India generate 60% of the power they use by

utilising the black liquor from the pulping process. Earlier, paper mills used

to consume 200 cubic metre of water to produce a tonne of paper. Now, the

integrated mills have reduced that to 50 cubic metre. Efforts are on to

bring it further down to 40 cubic metre.

Sources for paper industries being wood, waste paper and agro based, they

can be easily regenerated. Paper has fully recoverable waste. The industry

recycles the waste paper that is generated. The industry also recycles

agricultural waste which otherwise would have been burnt in the fields.

Reality

Myth

Paper industry is lobbying for access toforests again

Paper industry is asking for only a fraction of large scale degraded forest

land and not green forests. Out of total degraded forest land of 29 million

hectares, paper industry is asking for only 10%. Growing pulpwood trees on

degraded land will lead to a fillip in rural employment and add to the green

cover of India.

Reality

If given access to forest land, paper industrywill forgo agro-forestry initiative

Myth

The practice of farm forestry and growing trees on degraded forest land

are not antithetical to each other. Farm forestry is not keeping pace with

the growth envisaged for the industry. Considering future demand of

paper of 24 million tons by 2025, an additional 12 million tons of wood is

required. In fact wood had to be imported by the industry for the first time

last year.

Not only availability of wood is low, its prices have doubled in the last two

years and are amongst the highest in the world affecting competitiveness

of the Indian industry.

Reality

Paper industry is not scientificresearch savvy

Myth

Paper mills today are on the cutting edge of scientific research. Mills have

set up state-of-the-art R&D centres to develop high-yielding, drought-

tolerant and disease resistant eucalyptus varieties. Several million clonal

or seed routed saplings are produced in these nurseries and made

available to farmers at subsidized rates for plantation on their marginal

lands. Recently deadly gall disease hit eucalyptus plantations across the

country. Mills joined ranks with R&D organisations to curb the spread of

disease. Indian Paper Manufacturers Association (IPMA) was recently

awarded for its contribution in fighting the disease.

Reality

Paper industry resists change andnot opening out to the world

Myth

RealityJoining hands with Confederation of Indian Industry (CII), paper industry

under IPMA has successfully carried forward an umbrella programme

named “Making Indian Paper Sector World Class” year after year since

2007. Under this programme, 8th edition of PaperTech, an annual industry

event was held in June last year at Hyderabad. The objective of PaperTech

has been to bring the paper industry closer to the world class standards,

facilitate continuous improvement in energy, water and environment

performance and identify and share the good practices from around the

world. Many integrated mills today compete with the best internationally

Indian Paper Manufacturers AssociationPHD House (4th Floor), 4/2 Siri Institutional Area, (Opp. Asian Games Village), New Delhi – 110 016.

Tel : (011) 2651 8379, Fax : (011) 2651 8379Email : sg@ipma.co.in / | Website: www.ipma.co.insecretariat@ipma.co.in