South Indian corrugated box makers raise carton prices by 20%

The South Indian Corrugated Box Manufacturers Association (SICBMA) has agreed a 20% increase in carton box prices, citing sharp kraft paper cost rises, tighter mill supply, higher labour costs and GST-related working capital strain. The decision follows three kraft paper price hikes by mills between 12 August and 5 September 2026, and members had initially considered a 25% rise before settling on 20% to limit the impact on customer sectors such as textiles and FMCG.

Why this mattersFast, compounding paper cost pass-through squeezes smaller converters' margins and could accelerate consolidation toward larger integrated packaging groups.

• SICBMA members agreed a 20% carton box price increase at a general body meeting in Tirupur.
• Standard kraft paper prices rose from about Rs 31,000/tonne to Rs 35,000-38,000/tonne.
• 28 BF kraft paper prices rose from Rs 30/kg to Rs 38.50/kg.
• Paper mills implemented three successive price hikes between 12 August and 5 September 2026.
• Paper suppliers now demand payment within seven days, down from longer credit terms.
• GST input tax credit refund delays of up to seven months have tied up converter working capital.

Relevant to you? Yes No