Waive newsprint import duty: Publishers to govt
Cost of paper used to publish newspapers and magazines has jumped 20% in the past three months due to demand-supply imbalance following the pandemic, prompting news publishers to rush to the government seeking waiver of 5% import duty to help 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 there are no medical studies that 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, INS has suggested cutting customs on import of newsprints.
They also want a fiscal stimulus package for the industry or raising tariffs of government advertisements by 50%.
"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 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.