Indian Paper Sector Hit by West Asia Crisis: Energy Costs Soar, Exports Disrupted
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West Asia Crisis Hits Indian Paper Industry: Rising Costs, Export Fears
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CNBC TV18•12-03-2026, 20:52
West Asia Crisis Hits Indian Paper Industry: Rising Costs, Export Fears
•Indian paper industry faces rising energy costs and potential export disruptions due to the ongoing West Asia crisis.
•West Asia is a crucial export market, accounting for nearly 30% ($290 million) of India's $980 million paper and paperboard exports in 2024-25.
•The crisis, triggered by US and Israel strikes on Iran on February 28, impacts energy supplies (LNG, LPG) and chemical availability (hydrogen peroxide, binders).
•IPMA warns of trade diversion, with China and Indonesia potentially dumping surplus paper in India at predatory prices.
•IPMA President Pawan Agarwal highlights the risk of adverse demand impact and increased imports from export-driven economies.
