India is the fastest growing market for paper globally and the futuristic view is that growth in paper consumption would be in multiples of GDP and hence an increase in consumption by one kg per capita would lead to an increase in demand of 1 million tons. But, Make in India in paper is seriously threatened in view of comparatively higher cost of raw material, coupled with significant cost rise of fuels has resulted in a substantial rise in the cost of domestic manufacture of paper and paperboard, affecting competitiveness of the domestic paper industry.
SAI is working with small & marginal farmers in the core zone of paper mills, and supply raw materials at mill gate price. About 38%-40% of paper manufacturing cost is on raw materials. Therefore, lowering down of raw material cost not only makes paper mills competitive with international market, it also significantly reduce carbon footprint by cutting down transportation.