Morbi in Gujarat has long been recognized as a leading centre for the production of recycled paper and duplex board, essential materials for packaging across India. Once home to over 150 paper mills, the sector has witnessed a steep decline, with only around 70 units currently operational, primarily due to the global recession and rising operational costs.
As the union budget approaches, mill owners are seeking robust government intervention to support the struggling industry. One of the primary demands is a reduction in duties on waste paper, the main raw material for recycled paper production. Industry representatives explain that local supply is insufficient, and importing waste paper is necessary because Gujarat has a ban on virgin pulp production. This restriction makes it challenging to produce high-quality paper using only domestic resources.
Another major concern is the quality and availability of coal, the primary fuel for paper mills. The industry claims that recent coal supplies have been of substandard quality, affecting production efficiency. Mill operators have raised these concerns with authorities and have requested steps to improve coal quality, as well as explore the potential to substitute imported coal with domestic coal through government support.
In addition to raw material and fuel issues, the sector is looking for incentives to adopt renewable energy, particularly solar power, to reduce operational costs. Industry leaders suggest that special subsidies or dedicated support schemes in the union budget could help mills invest in solar energy, which requires significant initial investment but would provide long-term benefits for sustainability and efficiency.
Morbi’s paper mills are vital not only for local employment but also as a supplier of packaging materials to the ceramic tile industry in Morbi and other industries across India. The slowdown has affected the supply chain, and stakeholders emphasize that without government intervention, many mills may face closure, leading to further economic strain in the region.
Industry representatives remain hopeful that the upcoming union budget will address these challenges through targeted duty reductions, support for renewable energy projects, and measures to improve raw material availability. Such steps are seen as crucial to reviving the sector, maintaining production capacity, and ensuring the competitiveness of India’s recycled paper industry on both domestic and international levels.
By providing these measures, the government could secure the future of Morbi’s paper industry, protect jobs, and support one of Gujarat’s key industrial hubs, while promoting sustainable production practices that align with national economic priorities.
