Scrap import duty on paper: AIFMP

New Delhi, May 11 (UNI) The All India Federation of Master Printers (AIFMP) has suggested the government to remove import duty on paper as the country faces its major shortage.

''The gap between the demand and supply of paper is as high as 25 per cent,'' AIFMP President Manoj B Mehta told reporters here.

The domestic production of paper and paper board currently stands at 72 lakh tonnes whereas the demand is 95 lakh tonnes, he added.

''At present, imports of paper and paper board ranges between two lakh tonnes''.

Despite the paper mills' operating profit around 27 per cent, they have been hiking the prices of their produce, Mr Mehta said.

Citing the reasons, he said there existed discrepancies in the prices of the mills and the traders. ''There is no pricelist and the printers in small towns have to pay whatever amount they are asked,'' Mr Mehta added.

The group also demanded restriction on the export of paper till the supply and demand gap was removed.

The zero import duty on newsprint helped the newspaper industry grow manifold. A similar step in the printing business would be a blessing, Mr Mehta added.

The government recently reduced the excise duty on specified printing, writing and packing paper from 16 per cent to 12 per cent.

The printing sector is growing at 12.5 per cent and is expected to register 60 per cent jump by 2010. India ranks third worldwide in printing and book publishing with majority of printers in the unorganised sector.

UNI