Synopsis:
Jk Papers and Tamilnadu Newsprint & Papers are up by 15 percent today as the Directorate General of Foreign Trade (DGFT) announced that the government has set a Minimum Import Price (MIP) of Rs 67,220 per metric tonne for Virgin Multi-layer Paper Board (VPB), protecting domestic players from cheaper imports.
The shares of multiple paper manufacturers jumped sharply on Monday as major news came in on the defence of these manufacturers by protecting them from cheaper imports. In this article, we will dive more into the details.
Reason behind this rally
On August 22, 2025, the Directorate General of Foreign Trade (DGFT) made a significant announcement that the government has established a Minimum Import Price (MIP) of Rs 67,220 per metric tonne (on a CIF basis) for Virgin Multi-layer Paper Board (VPB).
This measure will be in effect until March 31, 2026, and it applies to imports categorized under ITC (HS) codes 48059100, 48059200, 48059300, 48109200, and 48109900. By setting an MIP of Rs 67,220 per MT, imports priced below this level are not allowed, preventing foreign suppliers from dumping cheap products.
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How did it get triggered?
In June 2025, the IPMA, which represents major paper producers like Emami Paper Mills, ITC, JK Paper, and Tamil Nadu Newsprint and Papers, with support from West Coast Paper, applied with the Directorate General of Trade Remedies (DGTR).
This application referenced the Customs Tariff Act of 1975 and anti-dumping regulations to request relief from what they described as “dumped” imports of Virgin Multi-layer Paperboard (VPB) from Indonesia. The domestic industry claimed that these imports were coming into India at prices “significantly below cost,” which they argued was causing serious harm to local manufacturers.
The goal behind this move is to shield domestic paper manufacturers from the influence of cheaper imports, particularly from countries like Indonesia, where prices are considerably lower. The Indian Paper Manufacturer Association (IPMA) had previously called for an anti-dumping investigation into these imports, which led to this policy adjustment.
In the wake of this announcement, shares of major paper companies such as JK Paper, West Coast Paper, Andhra Paper, Tamilnadu Newsprint, etc, saw a surge, as the MIP is anticipated to lessen competition from low-cost imports and enhance demand for locally produced paper boards.
Written by Satyajeet Mukherjee
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