Mr.Naresh Singhal, President of the Indian Recovered Paper Traders Association (IRPTA) says that the Grades, quality parameters and standard of recovered fibres should be defined and followed by the paper industry.
Payment terms for recovered fibres should be more transparent and clear. Good payment for recovered fibres support to procure good quality raw material at competitive prices. Industry should come forward to strengthen the process of recovered fibres management.
There are number of reasons which increases the production cost and ultimately product price in the paper industry. Higher funding from different outside resources increase per kg interest cost. Raw material cost play important roles in the paper industry coz the Raw material cost has the largest factor in the industry. Late payment for recovered fibres and raw material impacts the cost of production. Whenever a buyer make late payment as compared to the normal payment terms, buyer has to compensate the seller either by paying extra rates or by accepting poor quality material at normal price.
This compromised quality give less yield and also poor quality of the finish product. I believe less amount of loan and also better payment to your suppliers can be one of the reason to reduce production cost and also to improve quality. Better fund management could also cut down the cost. Thanks everyone.
