Crisis on newspapers around the world: Newsprint price increased by 175% in 16 months, getting newspaper became a challenge

The crisis is deepening in newspapers around the world. Actually, the paper used in the newspaper is increasing rapidly. Due to this, getting the newspaper is no less than a challenge. The production of this paper has come down and the supply has become weak. This is the reason why the price of newsprint is at an all-time high.

If we talk about India, then it buys about 50% of its newsprint from other countries. The price of imported newsprint was US$ 380 to 400 per metric tonne till December 2020, which has now increased to US$ 1,050 to US$ 1100 per metric tonne. It is clear that the price of newsprint has increased by more than 175%.

5 main reasons for the rise in the price of newsprint

1. India imports about 50% of its paper requirement from Russia, Canada and Europe. The supply has been disrupted due to the Russo-Ukraine war.
2. Due to the mandatory COVID vaccination in Canada, truck drivers have gone on strike, due to which the supply has stopped.
3. The demand for brown paper has increased due to the increase in online shopping during the pandemic. Paper mills are producing more brown paper. Newsprint production has declined. In 2017, where the world produced 23.8 million tonnes of newsprint, it has now dropped by 50% to 13.6 million tonnes.
4. The pandemic has resulted in low accumulation of scrap, which is the main raw material for newsprint. The situation is such that the waste once sold for Rs 10 to 12 per kg is being sold at Rs 35 to 40 per kg today.
5. In July 2020, China banned wastage import. Due to this sugar mills also faced shortage of raw material. In such a situation, China also started asking for paper at high rates. Indian mills also exported to China and there was a paper crisis in the country.