Calcutta, Feb. 24: Corrugated box manufacturers in the east have expressed concern over growing raw material costs following a hike in price of kraft paper by mills.

Kraft paper is a raw material for corrugated boxes that are used in packaging.

According to the Eastern India Corrugated Box Manufacturer's Association, the price of kraft papers has gone up by Rs 3 per kg in the eastern market. Moreover, the rise in prices of other raw materials such as stitching wire, gum, printing, ink, binding cloth has spiked the overall cost by around 15 per cent.

The corrugated box makers source kraft paper from around 15 mills in the eastern region and the end-products are purchased by food, pharma and fast moving consumer goods companies.

"There are more than 300 box manufacturers in Bengal affected by the rising raw material cost. There are more units if one considers the entire eastern market. These units are unable to pass on and recover the price rise from the users of corrugated boxes. Most of these units are small businesses and if the trend continues, these units will be adversely affected leading to closure," said Milan Kumar Dey, president of the Eastern India Corrugated Box Manufacturer's Association.

According to Dey, prices in the eastern region are already high compared with other parts of the country after taking into consideration freight costs, central sales tax and entry tax.

"The mills are urged not to increase the price of kraft paper irrationally and consumers should consider a revision of prices keeping parity with raw material costs in terms of market reality," said Dey.

He further said that manufacturers of corrugated boxes also sell waste paper generated at their factory and the downstream industry has not witnessed any significant increase in prices.