Indian ink makers warn packaging sector of unavoidable price rises

INDIA – India’s printing ink manufacturers have warned customers that price increases are now unavoidable, after raw material costs surged by as much as 45 percent since the start of the financial year.

The All India Printing Ink Manufacturers’ Association said in a statement dated 12 September that persistent geopolitical disruptions, supply chain uncertainties and erratic movements in international raw material markets had triggered steep and compounding cost escalations that members could no longer fully absorb. 

The average cost of key ink raw materials has risen between 35 and 45 percent since April, with increases accelerating through August. 

Toluene, a solvent widely used in gravure ink manufacturing, more than doubled in price, climbing from INR 90 (US$0.95) to INR 190 (US$2.00) per kilogram. 

Certain specialty resins and pigments have also more than doubled from previous levels, the association said.

Supply Chain Exposure Leaves Sector Under Strain

The statement lands at a delicate moment for India’s ink makers, who have spent much of the year navigating the knock-on effects of instability in Middle Eastern oil markets on a supply chain leaning heavily on imported petrochemical feedstocks. 

Solvents, resins, pigments and photoinitiators used in ink manufacturing are largely derived from crude oil and naphtha, leaving the industry directly exposed to swings in global energy prices and shipping disruption through the Gulf. 

Ink-makers described solvent prices moving as though traded on an exchange, with fluctuations within the day. 

Another warned that currency depreciation and tightening Chinese export policy on pigments had compounded pressure from crude oil volatility, calling the combined effect a cost shock driving up costs for everything.

Association Appeals for Customer Cooperation

Shekhar R Iyer, AIPIMA’s president, said members had diligently absorbed a substantial portion of these increases through operational efficiencies, manufacturing optimisation and internal cost management. 

He added, however, that the magnitude and persistence of the present escalation had exceeded what could reasonably be mitigated without compromising quality, safety, compliance and supply reliability upon which the printing and packaging industry depends.

Notably, the association stopped short of announcing an industry-wide price increase or specific surcharge schedule, instead framing the statement as an appeal for customers and industry associations to recognise exceptional circumstances and accept necessary revised pricing structures. 

Iyer said continued support was vital to ensuring uninterrupted supplies and sustaining the resilience of the domestic printing ink industry.

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