KOCHI: Following the Covid situation, the escalation of the Russia-Ukraine war has put the print media in crisis globally and the price of newsprint (print paper) has more than doubled. The price, which was $ 450 per tonne in 2019, has skyrocketed to $ 950 per tonne in 2022. Prices are likely to rise in the coming days due to declining production and disruptions in the supply chain.

About 45% of newsprint paper in India was imported from Russia. Following the war, shipping companies stopped trading in and out of Russia, significantly affecting imports. The expulsion of Russian banks from SWIFT, a global money transaction network, was also a setback. Rising prices of natural gas and coal, which account for 30 per cent of newsprint production, have also exacerbated the crisis.

Another factor affecting imports was the disruption of production and distribution in Canada, which accounts for 40 per cent of newsprint papers to India, due to the struggle against the compulsory Covid vaccine. About 60% of glossy newsprint in India comes from Finland. The UPM company in Finland has been on strike since January and paper has stopped coming in from there.

Price upwards

Fees for shipping freight to India has increased five-fold in two years. This will increase in the coming days due to the Covid induced lockdown of Shenzhen, a major Chinese port, and the war-torn rail link between northern Europe and China. This will lead to higher prices for most imported products, including newsprint.

• Domestic newsprint production in India also declined
• Most of the newsprint factories now focus on packaging products
• Newsprint makers, on the other hand, are plagued by shortages of raw materials and rising prices.
• The processing of waste paper and production of newspaper paper has also decreased

The setback due to Covid

The closure of factories due to Covid lockdown, disruption of supply chain and low consumption have affected global newspaper production.

Global production

23.8 million tonnes in 2017

13.6 million tonnes in 2022.

50%

Newsprint costs about 50 percent of the total cost of printing a newspaper. Newspaper printing ink and aluminum plate prices are also soaring.

4 months, increase of Rs 17,000

The increase in newspaper prices in the last four months alone is Rs 23,000 per tonne. When the five per cent GST is added, the price increase is Rs 24,150.

The calculation is as follows: (Price per tonne)

Dec. 14: ₹ 50, 925

February 01: ₹ 51, 975

February 21: ₹ 54, 075

March 05: ₹ 56, 175

March 15: ₹ 58, 275

March 23: ₹ 61, 425

April 01: ₹ 67, 7255 *

April 05: ₹ 75,075 *

(* New pricing currently in effect)