Bengal finance minister Asim Dasgupta, R. R. Vederah (left), president of Indian Paper Manufacturers? Association, and C.M. Bachhawat, commissioner of commercial taxes, in Calcutta on Saturday. Picture by Kishor Roy Chowdhury

Calcutta, Aug. 27: The domestic paper production capacity is set to grow three times in the next 15 years, according to the Indian Paper Manufacturers? Association. The current capacity is 5.9 million tonnes per annum, excluding newsprint.

However, the ramp up in the production capacity has to be commensurate with a growth in demand.

At present, a person in India uses 5-6 kg of paper a year compared with 300 kg per annum in the US, said association president R. R. Vederah at the 44th annual general meeting of the Federation of Paper Traders? Associations of India.

?The consumption has to be doubled in the next 8-10 years with various short-term and long-term measures,? said Vederah. ?Also, the government should provide policy impetus to drive consumption within the country,? he added.

Among the short-term measures, Vederah said there should be a uniform excise duty at 8 per cent and also a uniform customs duty to provide a level-playing field to the players. ?The duties should be structured in such a manner so that the domestic demand is not eaten away by cheap imports,? he added.

Also, in countering the volatility in raw material availability for a sustainable growth of the paper industry, Vederah cited the examples of other South Asian countries, which are converting wasteland into plantations. ?Similar policies should also be undertaken by our government,? said Vederah.

Globally, the industry produces 325 million tonnes of paper per annum, which is growing at 3 per cent a year, while the consumption should reach 420 million tonnes by 2010. Asia Pacific comprises 34 per cent of the global market and the consumption in these countries is growing in the range of 7 to 20 per cent.

The domestic paper industry clocks a turnover of Rs 16,000 crore per annum and provides Rs 2,400 crore to the exchequer.

While India is poised for a substantial growth in demand for paper, Bengal will be able to achieve a higher growth rate, state finance minister Asim Dasgupta said.

He assured that the state would provide necessary support in providing various measures to the paper industry and is also keen on reviving Titagarh and Bengal Paper Mills.