Newsprint cost shoots up 20%, publishers seek duty waiver

NEW DELHI: Cost of paper used to publish newspapers and magazines has jumped 20 per cent 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 per cent 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 af ter lockdown restrictions were relaxed, industr y leaders said.

Now, the rising cost of newsprint - created due to a drastic fall in supplies af ter 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 industr y.

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 industr y or raising tariffs of government advertisements by 50 per cent.