Paper stocks rally: TNPL, JK Paper, West Coast Paper surge up to 17% after govt sets minimum import price
Published on 25/08/2025 12:18 PM
Paper stocks rally: Paper stocks had a strong start to the week, with several names surging on Monday. The sharp gains came after the Indian government introduced a Minimum Import Price (MIP) on Virgin Multi-layer Paper Board (VMPB) — a material widely used in packaging across industries.
The market reaction was swift. Tamilnadu Newsprint and Papers Ltd (TNPL) led the way, jumping 17 per cent to Rs 179.90, making up for losses from the past two sessions. JK Paper climbed 15 per cent, while West Coast Paper Mills gained nearly 14 per cent. Orient Paper and Industries, Malu Paper Mills, and Andhra Paper also saw strong buying interest, rising up to 12 per cent.
In short, the government has made cheap imports of VMPB more expensive by setting a floor price — a move aimed at protecting Indian manufacturers from undercutting by foreign suppliers. According to the DGFT (Directorate General of Foreign Trade), this price protection will remain in place until March 31, 2026.
VMPB is used in packaging for everything from FMCG products and pharmaceuticals to electronics and cosmetics, so it’s a core product for many industries. By limiting low-cost imports, the government is nudging buyers to turn to domestic suppliers instead.
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For Indian paper companies, that’s a win. After months of margin pressures and global price competition, this policy could improve both demand and pricing power for local players — a rare piece of good news in an industry that’s faced its share of challenges.
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Senior Sub-editor at Zee Business English
shweta.shukla@India.com
Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.