Paper Stocks Slide as Imports Surge: JK Paper, Andhra Paper, West Coast Paper Mills Among Top Losers

Paper stocks came under heavy selling pressure on Tuesday, August 26, wiping out gains from the previous session. Investors turned cautious after fresh data revealed a steep jump in paper and paperboard imports during the June quarter of FY26.

Market Performance: Paper Stocks Under Pressure

The entire paper sector faced sharp declines:

• Coral Newsprints slipped 7% to ₹10.7 per share.
  
  
• West Coast Paper Mills dropped 5% to ₹219.5.
  
  
• JK Paper, Tamil Nadu Newsprint and Papers, Andhra Paper, Orient Paper, and South India Paper were all down between 3% and 5%.
  
  

This sharp correction came just a day after a strong rally, highlighting how quickly sentiment can turn when sector-specific data hits the market.

Why Paper Stocks Fell: Import Surge Weighs on Sentiment

According to commerce ministry data shared by the Indian Paper Manufacturers Association (IPMA):

• Imports of paper and paperboard rose 8%, reaching 486,000 tonnes in April–June FY26, compared to 452,000 tonnes in the same quarter last year.
  
  
• China led the supply surge with shipments up 28%, touching 143,000 tonnes in the quarter.
  
  
• In FY25, India's total paper imports had already crossed 2 million tonnes, worth ₹14,629 Crore, nearly double the volume from four years earlier. China alone accounted for more than one-fourth of the imports.
  
  
• Imports from ASEAN countries also increased, climbing to 92,000 tonnes from 78,000 tonnes a year ago.
  
  

This surge in foreign inflows has intensified pressure on domestic paper producers, who are already battling rising costs and underutilized capacities.

Policy Action: Minimum Import Price to Check Cheap Inflows

To safeguard the local industry, the government has stepped in with trade restrictions.

• A minimum import price (MIP) of ₹67,220 per tonne has been imposed on virgin multi-layer paperboard imports.
  
  
• This measure will remain effective until March 31, 2026.
  
  
• The Directorate General of Foreign Trade (DGFT) confirmed that the MIP is applicable on a CIF (cost, insurance, and freight) basis.
  
  

The product under restriction is widely used in packaging — pharmaceuticals, FMCG, food and beverages, electronics, cosmetics, liquor, book covers, and publishing.

Ongoing Trade Probe

Adding to the regulatory measures, in July 2025, the Directorate General of Trade Remedies (DGTR) initiated an anti-dumping investigation into paperboard imports from Indonesia, following complaints from domestic manufacturers.

This underscores the ongoing tussle between domestic paper companies and cheaper overseas supplies, particularly from China and ASEAN countries.

Summary: Outlook for Paper Stocks

Paper stocks took a sharp knock after import data revealed continued foreign supply pressure. With imports rising 8% in Q1 FY26 and China strengthening its dominance, investors reacted swiftly by pulling out of major paper counters like JK Paper, Andhra Paper, and West Coast Paper Mills.

While the government’s move to impose a minimum import price and initiate trade probes may provide some relief in the long run, near-term market sentiment around paper stocks remains cautious.