Explained - The key triggers behind the sharp rally in paper stocks
Published on 25/08/2025 11:05 AM
Explained - The key triggers behind the sharp rally in paper stocksJK Paper and Tamil Nadu Newsprint & Papers jumped 15% each, while West Coast Paper Mills gained 13%. Andhra Paper also traded higher, up nearly 8%.By Meghna Sen August 25, 2025, 11:05:44 AM IST (Published)2 Min ReadShares of paper companies rallied sharply in trade on Monday, August 25. Stocks like JK Paper Ltd., West Coast Paper Ltd., Tamil Nadu Newsprint & Papers Ltd., Orient Paper Ltd. and Ruchira Paper Ltd. surged between 6% and 15%.
JK Paper and Tamil Nadu Newsprint & Papers jumped 15% each, while West Coast Paper Mills gained 13%. Andhra Paper also traded higher, up nearly 8%.
What's driving the rally?
The rally was driven largely by the central government's move to impose a Minimum Import Price (MIP) on Virgin Multi-layer Paper Board, alongside amendments to the import policy under Chapter 48.
According to a notification from the Directorate General of Foreign Trade (DGFT), the MIP will remain in force until March 31, 2026.
Beyond policy support, the sector is also benefiting from stable raw material prices, which have helped sustain margins for paper makers. Demand for packaging is expected to pick up ahead of the festive season, while the third and fourth quarters are typically strong for the paper and packaging segment.
At the same time, capacity expansion by industry players is underway, ensuring they are better positioned to capture rising demand.
The government's recent education reforms, including changes to NCERT curriculum and textbook requirements, are also seen as a positive trigger for paper consumption.
Virgin Multi-layer Paper Board is widely used in the packaging of pharmaceuticals, FMCG products, food and beverages, electronics, high-end cosmetics, liquor, as well as for book covers and publishing.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsJK PaperPaper stocksshare market today