Indian Handmade Paper Industry

Paper Industry is a low investment and high labor intensive industry. It uses only waste raw materials and the durability of the paper is

long with exclusive look and unique character. The paper is available
in a saga of rich varieties, designs, shapes and colors.
,

The paper industry has an important social role to play for the country. Use of Paper is considered as an index of cultural growth.

Key social objectives of the Government like eradicating illiteracy, making primary education compulsory, extra cultural activities etc. are very much related to the paper industry.

The Indian handmade paper industry produces a variety of paper and paper products mainly by using waste materials such as cotton rags, tailor cuttings, hoisery cuttings and small quantities of waste paper.

Certain materials are blended with them for mottling effects and to produce special varieties of paper. Availability of raw materials and existing infrastructural facilities offer good scope for development of special varieties of handmade paper in the North East. It also has an added advantage to earn from world market.

Due to increased literacy, industrialisation, modernisation and development by 2000 AD, the per capita consumption of paper in India may increase from the existing level of 3 kg. to 4.5 kg.

The demand for paper is expected to increase from existing 21 lakh tonnes (1991-92) to 37.9 lakh tonnes by 2000 AD.

The handmade paper and its allied products offers a vast marketing scope in

both inside and outside the country. Imports of paper and paper products was
growing over the years. However, it has increased during 2001-02 after a fall in 2000-01. Actual import was 2.71 lakh tonnes in 1998-99, 2.02 lakh tonnes in 1999-00, 1.39 lakh tonnes in 2000-01, 1.67 lakhs tonnes in 2001-02 and 1.23 lakh tonnes upto November, 2002. About 1,40,000 tonnes of paper was exported in 2000-01 mainly to the neighbouring countries.

MARKET SCENARIO
DOMESTIC MARKET
+

Before 1991, the industry was heavily dependent on captive market i.e. supply to
Govt. shift and started Central taking Govt. place departments in this against reservations. after 1991-92.

State + The

scenario

+ There has also developed the non-captive market which can be classified into institutional and non-institutional. Institutional market demands bigger quantities while non-institutional smaller.

+ There are the eco-conscious buyers who purchase environment friendly produces

like handmade paper and products for greeting cards, invitation cards, album, wedding
cards etc.

+ The market of carry bags is also growing steadily due to the ban on polythene bags. This changed situation has resulted into enhancement in capacity utilization, product

diversification, culture of competitiveness, better management and market approach.

EXPORT MARKET

+ The Indian handmade paper industry has made a big dent in the international market because the Indian handmade paper and value added products have made a quantum jump. According to an estimate, value added products have the share of

more

than

70%

of

total

exports.

+ For the last two decades the handmade paper industry has been exporting certain exclusive varieties like deckle edge stationery, drawing paper, marble paper, mottle paper made from jute, wool, algae, straw, grass etc and recorded significant growth in the export sector.

+ Foreign buyers like US, Germany, UK, Canada, Italy, Sweden, Australia, Singapore and Hong Kong are purchasing handmade paper from India because handmade

paper production in India by all means is as low priced as compared to the other
handmade paper producing nations.

+ The demand of handmade paper at international level is on the spurge due to

increasing environmental awareness.

Indian handmade papers have created a sensation in the world market. However there is growing urge to use eco-friendly products. Different countries use these handmade paper differently. Some use it as decorative papers, some as stationery, some as artistic paper and so on.

STATUS OF HANDMADE PAPER INDUSTRY IN INDIA The Indian handmade paper industry has been identified as one of the village industry and the industry has seen significant growth in last one decade because of improved demand not only on national level but at the international arena. As per estimates, there are nearly more than 455 handmade paper units scattered all over India producing nearly 50,000 tonnes of handmade paper & board. The Indian handmade paper industry had grown remarkably in the recent past where in the production of handmade paper industry has reached to a turnover of Rs 250 crores.

Due to increased literacy, industrialization and modernization, the per capita consumption of the paper and paper board has increased remarkably from 4.5 kg in the year 2000 to nearly 6.5 kg in the recent past. This industry provides employment to about 10,000 people and most of them are situated in the rural areas.

Although, the per capita consumption of paper and paper board in India is low compared to the developed countries like US (350 kg), China (58 kgs), Japan (225 kgs) and world average 55 kgs however the total quantity of paper produced in India is quite significant with a total production of nearly

70 lakh tonnes per annum.

Indian handmade paper industry contributes to less than 0.5 % of the total countrys production of paper and paper board till the year 2005-06 and this share has recently increased to nearly 0.7% in the recent year since the production of handmade paper which was nearly 25,000 tonnes in the year 2005-06 now stands at nearly 50,000 tonnes. Although, the country is self sufficient in the manufacturing of handmade paper & board, however, a little quantity of specialty paper are imported.

The Indian pulp and paper industry has recently experienced enormous growth, coupled with consolidation due to the value addition activities like embossing embroidery on handmade paper etc. Tucked away in a village near Jaipur is the world's largest centre of handmade paper. The handmade paper industry in India offers considerable potential to

meet the increasing demand for paper products in an environmentally

sound way. Delhi is an ideal location to find both of these materials because it has a thriving rag trade, which provides abundance of old cloth and vast amounts of used paper.

Handmade paper production has low capital investment, thereby

promoting local entrepreneurship, it generates more local employment; it is an environmentally sound technology, depleting less resources and

causing less pollution than paper mill factories; and it can produce
certain specialized varieties of paper, for example, watermark, filter paper and drawing sheets, etc.

The cost difference between handmade paper and mill made paper is marginal. The concern about the disappearance of forests, coupled with renewed interest in the quality of papers generated new study of the paper maker's materials, especially the pulps and fibers.

A great product to consider for donation or corporate sponsorship in any rural focused development initiative as it

reduces the health problems and drudgery faced by rural

women. This stove is already making history by creating smoke free villages through corporate responsibility initiative of a major corporate in India.

With several technological changes taking place in the paper industry, the government has to rethink its land use policies and conservation strategies to protect the natural resources.

The Indian government has provided funds to different handmade paper supplying councils like KVIC (Khadi & Village Industries Commission)

which tie up with banks and through banks provide funds to promising
entrepreneurs who want to start handmade paper making business.

Seven years back UNDP provided funds to improve activities further in handmade paper industry which gave a lot of exposure of that market. Also the government had come out with REGP plans (Rural Employment Generation Program) where the government gave loans to village people

to start small handmade paper units thus boosting the rural areas to further
develop. India is said to produce approximately Rs.21 crore worth of handmade

papers, providing full time employment to around 10,000 persons in the

rural areas.

Further to boost the industry KVIC sector conducts other major programs like Buyer-Seller Meet Cum Exhibitions at national level, Seminars Cum Workshops on Handmade Paper Industries etc, they also came out with Handmade Paper Making Multi Disiplenary Training Centres in Mumbai, Assam, Delhi which provides prospective entrepreneurs with Demonstration Kits for good quality

products and also how to tab the naturally abundantly available local
raw material.

They also plan to carry out similar activities in northeastern states

also to boost the northeastern regions of handmade paper industry.

This year two major units, The Sthaneshwar Handmade Paper PCIS Ltd

and Handmade Paper & Board Industries under the KVIC sector won
National Award through the president of India for supplying best quality products.

Mr.K.Sudhakar - Dy.Director I/C (Handmade Paper and Fiber industry) is of the opinion that the " Handmade Paper products is a real treasure with full of creative, innovative and thought provoking ideas and the industry has got an excellent future because of value addition and export oriented prospectives."

The sector also plans to tab or explore the very big area of packaging industries be it for medicine packaging or fertilizer packaging etc. Even the Internal Trade Fairs like PAPEREX have been fruitful trade encouraging activities. This year in PAPEREX 2005, Carlton Coats Pvt. Ltd. were the ones to win the 1st prize. Each unit in India is said to roughly provide fifty crores worth material.

Most of these units have become totally export oriented. Ever growing
International market for Handmade Paper Though countries like Indonesia, Malaysia and Philippines have already emerged as `handmade

paper giants'; India is being looked upon as the country with the maximum
growth potential.

The country is almost self-sufficient in manufacture of most varieties of handmade papers. There has been phenomenal growth in the export market for Indian Handmade Paper and its products, especially in the

developed countries like the United States of America, West Germany,

European Countries, Australia etc.

The last decade witnessed rapid growth in export as a number of

Handmade Paper and paper products manufacturing units have become hundred percent export oriented units and helped in increasing the foreign exchange of the country.

INDIAN HANDMADE PAPER INDUSTRY-A GLANCE

PARTICULARS 2005-06 2006-07

Estimated Number Of Units Estimated Production (Tons) Contribution In Total P&B Production % Turnover, Total P & B (Rs. Lakhs)

450 25000 0.4 1800000

455 50000 0.6 2100000

Turnover Hmp (Rs. Lakhs)

Total Export P&B (Tons) Exports Hmp (Tons) Contribution Of Exports Of Hmp In P&B % (Qty) Value Of Exports Total P&B (Rs., Lakhs) Value Of Exports Of Hmp (Rs. Lakhs) Contribution Of Exports Of Hmp In P&B % (Value) Imports Hmp (Tons) Value Of Imports Of Hmp (Rs Lakh)

12500
323000 20906 6.4 124639 7723 6.2 3755 847.7

20000
350000 42000 12 147500 15717 10.7 2800 518.6