Kraft Paper Price Trends, Forecast, Chart, Prices And Index in India Q2 2026

The Kraft Paper Price Trend in India moved firmly upward during Q2 2026 as higher raw material costs, a weaker Indian Rupee, rising freight expenses, and steady packaging demand put pressure on the domestic market.

Compared with Q1 2026, the market experienced a stronger increase during the quarter, with kraft paper prices rising across most Indian regions.

For mills, converters, and packaging manufacturers, the quarter was mainly about managing higher input costs while maintaining regular supply to customers.

Kraft paper is an important material for India's packaging industry. It is widely used for corrugated boxes, shipping cartons, paper bags, industrial packaging, food packaging, e-commerce packaging, and wrapping applications.

Because of this broad use, changes in raw material prices, transportation costs, energy expenses, and currency movements can quickly influence the market.

During Q2 2026, several of these factors moved in the same direction and created a stronger cost environment for producers.

 

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Kraft Paper Price Trend in India During Q2 2026

The Indian kraft paper market recorded a significant rise during Q2 2026. Prices increased by around 2% across most regions compared with the previous quarter, which was a stronger movement than the modest gains seen during Q1.

The most important factor behind the increase was the depreciation of the Indian Rupee against the US Dollar. During the quarter, the Rupee weakened by approximately 6–8%. This had a direct impact on the cost of imported raw materials and other inputs that are priced in international markets.

For kraft paper manufacturers, currency movement is important because many mills use imported recovered paper and other imported materials to supplement domestic supplies.

When the Rupee loses value against the Dollar, the landed cost of these materials becomes higher even if the international price does not change significantly.

This created a difficult situation for mills during Q2. Production costs were rising at the same time that supply remained relatively constrained in parts of the domestic market.

Imported OCC Costs Put Pressure on Kraft Paper Production

Old Corrugated Cardboard, commonly known as OCC, remained one of the key cost factors during the quarter. Indian kraft paper mills use recovered paper as an important source of fiber. Domestic recovered paper supplies are not always enough to meet the requirements of the industry, so imported OCC can play an important role.

During Q2 2026, higher offshore OCC costs combined with Rupee depreciation to increase procurement expenses. The situation became more challenging because the higher Dollar value meant that Indian buyers had to spend more Rupees for imported recyclable material.

At the mill level, this increase in fiber costs eventually affected kraft paper production economics. Mills also faced higher expenses for mixed paper, electricity, fuel, and domestic transportation.

When several costs rise at the same time, producers generally have limited room to absorb the full increase. This was an important reason why higher costs were passed along the supply chain during the quarter.

Domestic Supply and Demand Conditions

The demand side of the Indian kraft paper market remained relatively resilient in Q2 2026. Packaging activity continued to provide regular support to the market.

Kraft paper is closely connected to everyday economic activity. Products moving through e-commerce channels need cartons and protective packaging. Food products require boxes, wraps, and paper-based packaging. Industrial goods also need corrugated packaging for transportation and storage.

Paper bags, labels, industrial wrapping, and other packaging applications also contributed to regular demand.

Because buyers continued to require packaging materials, converters could not simply stop purchasing when prices increased. Instead, many buyers continued procurement while trying to manage higher material costs.

At the same time, mills maintained disciplined production levels to balance supply with demand and protect margins. This combination of steady demand and controlled availability helped support the upward movement in prices.

Kraft Paper Prices in India and Currency Pressure

The movement in the Rupee was one of the clearest themes behind the Q2 market. A currency depreciation of approximately 6–8% created additional pressure on imported inputs.

For example, if an imported raw material is priced in US Dollars, a weaker Rupee means that the Indian buyer needs more Rupees to purchase the same quantity. This can affect the cost structure of a paper mill even when the international commodity price remains relatively stable.

The impact is not limited to recovered fiber. Imported wood pulp, chemicals, machinery-related inputs, and other papermaking materials can also become more expensive when the local currency weakens.

For kraft paper producers, this creates a chain reaction. Higher input costs increase manufacturing expenses, which can reduce margins. Producers then look for ways to recover these additional costs through higher selling prices.

This was clearly visible during Q2 2026.

Ludhiana Kraft Paper Market Performance

A more specific example can be seen in the Natural Brown kraft paper market traded Ex-Ludhiana.

For Natural Brown Ex-Ludhiana 100 GSM 25 BF (MG Finished), the price increased by 3.53% in Q2 2026 compared with Q1 2026. This increase was supported by higher production costs and improving demand from domestic packaging applications.

The Ludhiana market is an important reference point for understanding how cost pressures translated into actual domestic pricing. Producers faced higher expenses for imported fiber, chemicals, freight, energy, and other production requirements.

The market also experienced additional logistics pressure because geopolitical tensions and disruptions affecting global shipping routes contributed to higher ocean freight and transportation expenses.

These additional costs eventually reached the domestic market.

Monthly Movement During April, May and June

The quarterly movement was not limited to one month. Prices strengthened during April following cost-related mill price revisions.

May and June continued to show upward pressure as imported raw material costs, freight expenses, and currency weakness remained important market factors.

The Natural Brown Ex-Ludhiana 100 GSM 25 BF (MG Finished) grade recorded a 4.56% month-on-month increase during Q2 2026, showing how quickly cost pressures were transferred into domestic pricing.

For buyers, this meant that delaying purchases did not necessarily guarantee lower prices. With supply conditions relatively tight and mills facing higher production expenses, replacement costs continued to move upward.

For converters, this created a difficult balancing act. They needed to maintain sufficient paper inventory for packaging orders while also protecting their own margins.

Kraft Paper Price Chart: What Q2 2026 Shows

The Kraft Paper Price Chart for Q2 2026 reflects a market that became progressively firmer as the quarter developed.

April marked the beginning of stronger price movement following mill price adjustments. In May, the combination of higher imported input costs and freight expenses continued to support the market. By June, the effect of currency depreciation and elevated production costs remained visible.

The overall pattern suggests that the market was driven more by cost pressure and supply conditions than by a sudden decline in packaging demand.

This distinction is important. A price increase caused by strong demand can behave differently from one caused by higher production costs. In Q2 2026, both demand and supply-side factors contributed, but the sharp increase in input costs was a major part of the story.

Kraft Paper Price Index and Market Outlook

The Kraft Paper Price Index can be useful for tracking the combined movement of market prices and understanding broader cost trends over time.

Looking ahead, currency movement will remain an important factor for the Indian kraft paper industry. If the Rupee remains weak, imported OCC and other dollar-denominated inputs can continue to put pressure on production costs.

Freight will also remain important. Any further disruption to international shipping routes could increase transportation and insurance expenses. On the other hand, improved shipping conditions could reduce some of the cost pressure experienced during Q2.

Domestic recovered paper availability will also influence the market. If local recovered fiber supply improves, some mills may become less dependent on expensive imported material. However, if domestic supply remains limited while packaging demand stays healthy, mills may continue facing procurement pressure.

Demand from e-commerce, food packaging, industrial packaging, paper bags, and other end-use sectors should remain an important part of the market outlook.

What Kraft Paper Buyers Should Watch

For buyers and converters, several factors deserve close attention when monitoring the Indian kraft paper market.

The first is the movement of the Indian Rupee against the US Dollar. Currency changes can quickly affect the landed cost of imported raw materials.

The second is the price and availability of OCC and other recovered paper. Since fiber is one of the main inputs in kraft paper production, changes in recovered paper costs can have a direct effect on mill economics.

Energy costs are another important factor. Electricity and fuel expenses influence manufacturing and transportation costs, while higher freight rates can increase the delivered price of paper.

Finally, buyers should monitor domestic packaging demand and mill operating rates. A combination of strong demand and restricted supply can provide additional support to prices.

The Kraft Paper Price Trend in India was clearly stronger during Q2 2026, with prices increasing across most regions as producers faced a combination of higher imported fiber costs, Rupee depreciation, rising freight expenses, energy costs, and steady packaging demand.

The 6–8% weakening of the Indian Rupee was particularly important because it increased the local cost of dollar-denominated imported inputs. Higher OCC costs added further pressure, while electricity, fuel, mixed paper, and domestic freight expenses also increased.

The Natural Brown Ex-Ludhiana 100 GSM 25 BF (MG Finished) grade recorded a 3.53% quarterly increase and a 4.56% month-on-month rise during the quarter, highlighting how broader cost pressures translated into domestic market prices.

Overall, Q2 2026 showed how closely the Indian kraft paper market is connected to currency movements, recovered fiber availability, international logistics, and packaging demand. For the coming quarters, buyers and producers will need to keep a close watch on the Rupee, imported OCC costs, freight conditions, domestic supply, and packaging consumption to understand the next direction of the market.

Please Submit Your Query For Kraft Paper Trend, Market Analysis and Forecast: https://www.price-watch.ai/book-a-demo/

About Price Watch™

Price Watch™ is an independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price-Watch™ specializes in tracking raw material prices, analyzing market trends. and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price-Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price-Watch™ transforms market volatility into actionable opportunity. 

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