In a big relief to the print sector, the price of newsprint, which was a cause of worry the last financial year, has dropped by nearly 30%. Industry experts believe that it is the reduced global demand for the paper that has led to the reduction in price.

According to sources, the price of newsprint, which had touched an all-time high of $1000/tonne during the last financial year, has now come down to around $700.

DB Corp Ltd, in its official statement during Q4, stated that newsprint prices continued its downward trend in Q4 FY 2023 aiding margins and is likely to bring higher benefit in the coming quarters.

“Newspaper newsprint prices, from a high of Rs 63,500/tonne in Q2 FY2023, have come down to Rs 60000/ tonne in Q4 FY2023. Our blended purchase price currently is around Rs 55000/tonne,” it said.

Speaking to exchange4media, Matrubhumi Group’s Managing Director Shreyams Kumar, said, “The reason for the prices coming down is lower consumption level across the globe due to Covid and it has not recovered fully since that time. But it is on the path to recovery.”

“I think the consumption of newsprint in India went down by 40% during Covid. The custom duty is the same but there are rumours that the government is planning to cut it down.”

Sharing a similar view, Amit Chopra, Joint MD, Punjab Kesari, said the price reduction is due to reduced global demand and improved logistic situation and it will improve profitability.

“The price reduction has been going on since mid-last year. The effect is a reduction in cost of printing and not an increase in revenue. Consequently, it will improve profitability.

“The price reduction is due to reduced global demand and improved logistic situation. Earlier the freight costs had gone through the roof due to covid disruptions. Customs duty remains the same. Dollar has only become more expensive since last year,” Chopra said.

Kumar, however, said, the effect of this price drop will be felt only in Q1 of the next financial year.

“Currently the price is 700 USD per tonne. Decreasing the cost of newsprint does not increase the revenue, it only brings down the printing cost. We normally import and keep a stock of newsprint.

“The prices have come down only during the last quarter so the effect of this price drop will show only in Q1 of the next financial year,” he said.

Disruption in the supply chain of newsprint due to the Russia-Ukraine war, compounded with a scarcity of waste paper used in recycling led to the prices going as high as $1000/tonne in 2022.

There has been a gradual dip in the prices from $1000 to $850-900 and now $700.

However, Varghese Chandy, Vice President, Marketing and Sales, Malayala Manorama, had a different take on the scenario.

He said in the last four-five years, the cost of newsprint has gone up by nearly 90% and with dollar exchange right hitting the roof, reduction in newsprint price is not in sight.

“It was as high as $1050 per tonne last year and it is only $900 now. In the last four to five years, the price of newsprint has significantly gone up by around 90%. There is no way that the cost is coming down. It is still very high.

“Dollar exchange rate has also gone up considerably. I don’t think newspapers have surplus funds. No question of the newsprint price coming down,” he said.

According to sources, the cost of newsprint is expected to go down further by October this year to even $600/tonne.

Chopra said that Punjab Kesari, which consumes about 30-32000 tonnes of newsprint every year, will pass on the benefit of reduction to readers by reducing cover price by a rupee.

“High newsprint prices resulted in hiking of cover prices. Punjab Kesari group is passing on the benefit of reduction to readers by reducing cover price on some days by a rupee from 5 to Rs 4,” he told exchange4media.

According to industry players, the top price for newsprint for 2022 was $1000/tonne, up from $450/tonne in Jan-March 2021.