Publishers seek duty waiver as newsprint cost shoots up
New Delhi, Jan. 17: The cost of paper used in printing newspapers and magazines has jumped 20 per cent in the past three months due to a demandsupply imbalance post-pandemic, prompting news publishers to rush to the government seeking the waiver of 5 per cent import duty to cut cost.
An industry that was facing headwinds from a slowing economy even before the pandemic was hit hard when most readers stopped buying newspapers and magazines on fears of them being carriers of viruses.
While no medical studies have established the virus transmission theories, sales did not pick up even after lockdown restrictions were relaxed, industry leaders said.
Now, the rising cost of newsprint created due to a drastic fall in supplies after 3 million tonnes of manufacturing capacities were either closed or converted to brown paper grades worldwide has dealt a second blow that is threatening the survival of the industry.
Indian
Newspaper
Society (INS) president L. Adimoolam said most newspapers have stopped sending the hard copies to the rural areas with readership of less than 50 copies to reduce the distribution cost.
In a representation to finance minister Nirmala Sitharaman, the INS has suggested cutting the customs duty on imported newsprints.
They also want a fiscal stimulus package for the publishing industry or raising tariffs of government advertisements by 50 per cent.
"If working out a stimulus package for print media is difficult at this juncture, DAVP (Directorate of Advertising and Visual Publicity) may please consider releasing advertisement for all its departments to all publications with an increased tariff of
50 per cent, which would be highly helpful for the industry as a whole," the INS representation said.
It has also sought extension of the validity of RNI (Registrar of Newspapers for India) circulation certificates to up to March 31,
2022, which will enable
DAVP rates to remain the same till next year.
It is estimated that the print media would take two-three years to recover from the current situation, the INS added.
Adimoolam told PTI, "The government helped a few industries (during the pandemic) with stimulus packages. We are (also) expecting some stimulus."
Several newspapers have responded to the situation by cutting costs that included shutting down editions, reducing the number of pages and laying off staff.
Several small papers have closed down, Adimoolam added.
He said the newspaper distribution has become very costly.
The Indian publishers continue to be dependent on imported newsprint due to insufficient domestic capacity/output and poor quality.
"Prices of newsprint have shot up by 20 per cent in the past three months. Another increase of 10-15 per cent is on the anvil next month which will severely impact the publishers," said the INS.