An interview from Mr.Naresh Singhal, President, IRPTA.
Paper Market : Could you let us know the history of Indian Recovered Paper Traders Association (IRPTA)?
Naresh Singhal : In India, during the 21st century, the recycling of papers has become increasingly prevalent, with usage ranging from 10 to 30 tonnes. The Indian Recovered Paper Traders Association was established in 2020 with the primary purpose of utilizing recycled papers for packaging. Building and maintaining strong relationships between paper mills and suppliers necessitates the formation of such associations. During the 1980s and 1990s, Uttar Pradesh and Punjab emerged as key hubs for recycling paper mills in the northern region. Subsequently, recognizing the importance of localized support, the Association of Waste Paper Merchants and Raw Materials Suppliers was established in Delhi to cater to waste paper suppliers serving packaging industries and paper mills.
In the beginning if there is any issue between papers industries and suppliers regarding quality and payments the Associations will sort out the problems. In the year 2001 I was President in Association Of Waste Paper Merchant and Raw Materials Suppliers. We tried to sort out problems regarding paper mills and we took our problems to the vision of the government. In 2005 April the Government introduced VAT, we represented and worked on the Presentation for waste paper dealers, got exemption for ground source. From August 2005 to July 2017 there are no Taxes charged and whatever the problems raised in Delhi regarding Government new rules we sorted out that. In 2017 Goods Service Tax (GST) has implemented for waste paper also at the rate of 12% for the item code 4707 behalf of the dealers, our Association raised a voice to the Finance Minister and gave the presentation and made it from 12% to 5%. Now throughout the country it is 5%, this is how the Association supported the dealers.
After 2017 approximately 75% of recycled papers were used in India which is made of recovered fibres. The growth of recovered fibre is very fast comparatively to the year 2000. Participation of recovered fibre or recycled paper was about 10% -15%, but now it is 75% of the total consumption of recycled papers are used which is made up of recovered fibre. In India we are not getting much fibre collection and the quality is also poor in the collection. So we are using 35% – 40% of imported waste paper and we dependent on imported papers.
In the year 2019, India imported the dumping material of recovered paper in the name of mixed waste. These are types of mixed waste like plastic waste, medical waste sometimes moisture will be high in the dump in our domestic market, the moisture and the quality is poor due to this, the demand has increased.
We formed an association All India Waste Paper Dealer Association in December 2000 in Delhi. In the mean time we took part in Paperex Exhibition and we utilized the opportunity to meet different people around the Country. In this expo we met south India Waste Paper Dealer Association before Covid in the month of April. All India Waste Paper meeting was held in Tamil Nadu and we Jointly Introduced the Association Called Indian Recovered Paper Traders Association (IRPTA) which connects overall Indian waste paper dealers. With the help of this Association we created associations in each and every state of India and which made the work easier. We were active on Social Media and created whatsapp Groups for State level and all India Level. By these Whatsapp groups our members can easily converse with each other and get updates on time to time basis. And we started discussing about the problems faced by us and discussed about the problem of mixed waste.
In the Year 2019 we gave presentation to the Ministry of Commerce and we got support from the government like implementation of Dual Inspection Plan, and bought some more restriction like poor quality import waste has been stopped in January 2020, which automatically revert 5000 number of containers from Gujarat coast, which is not capable to use in recycling process, and this is our over all history.
“We Jointly Introduced the Association Called Indian Recovered Paper Traders Association (IRPTA) which connects overall Indian waste paper dealers”
PM : How many paper traders are your members in IRPTA and how do they co-operate with each other in business?
NS : According to the state we have created 15 whatsapp groups. The number of members is about 30 to 100 members in each group. On whole we have 800 members in our association in Pan India group we have 200 members and in state wise different number of members. Basically we communicate in Whatsapp group and we are active on Facebook, we are interconnected in whatsapp because we live in different states, speak different languages and we face different problems. We communicate in both English and Hindi, normally in English. We share regional updates throughout India (North, South, Eastern and West ).
“We are connected in whatsapp through which we take personal contacts and we develop communication between members”
PM : Could you explain us about your association’s routine activities?
NS : The paper industry has developed itself in 20 years where the growth has increased gradually. Before this we could find paper industries only in specific areas and it is not everywhere in the State. Now we can find the paper industry everywhere. The paper supplier and buyer are very less due to communication problem between the regions. As we are Association we came forward to update the requirements, market positions and pressure position to all the regions.
Normally we are connected through whatsapp from there we take personal contacts and we develop communication between members. The person in Delhi knows the member in Mumbai and from Mumbai to Nagpur, Rajasthan to Kolkata and the member from Punjab can also buy materials from Hyderabad. Though whatsapp is very useful to know were the members are? How do they work? And what are their payment terms? Due to IRPTA we expanded the business in successful way. As we are connected with each other through whatsapp, the business has seen growth multiple times in the past four to five years.
PM : How do you support your members to improve efficiency, productivity & profits?
NS : As said earlier we are connected in whatsapp from which our members can directly deal with the dealers through which the productivity increased and the expenses for the mediators is decreased. The person who generates the material will directly connect with the buyer by which the profit is also increased.
PM : Do you have any system which is followed by your members for uniform working pattern throughout the nation or region?
NS : The waste paper system remains same throughout the country. It is covered in different segment like Domestic collection and Industrial collection.
1. In Domestic collection where the paper is collected door to door, where the vendor by himself collect the papers or the member from Ministry Corporation comes for bin collection, who also collects waste papers. And more over there is Road collection, Railway collection, sweeping collection, Bus travelling collections. There is system setup for all collections, which is not directly connected to us.
2. Industrial waste collection is collected during paper conversion, printing papers, making stationery, publishing magazines and manufacturing of boxes for packaging at every level where there is a wastage of about 10% – 12%, from which our vendor may directly visit the industry. It sets a pattern system. After collection, comes the segregation level, where we have different members in this process, and then finally the material is packed and sent to the market. The market person will trade them. Some materials goes for packaging, especially Newspapers, magazines and books are used for food packaging. It’s used to pack street food and it is disposable. And in some area they manufacture carry bags, envelop covers which is cheaper and popular in the market. And this is the set of pattern followed throughout India.
“As our recovery is less, we seek for imported papers which is virgin quality 35-40% and need to sustain the quality in the industry”
PM : How recovered paper imports are dominating the Indian paper trading business?
NS : Imported paper is very important from the last 20 to 30 years. It is very important requirement of the country, as said earlier in India we get 75% of recycled papers. When one paper is manufactured we can recycle it up to 5 to 6 times, but it may lose its fibre in each cycle like 17 to 18%. We should add some new pulp to the recycle.
As our recovery is less, we seek for imported papers which is virgin quality 35-40% and need to sustain the quality in the industry. When the newspaper is recycled to make the premium quality paper, virgin paper is needed, to fulfil the requirement. We need imported paper in India and more over there is no certain rules, regulations and policies for importing Papers as of now.
PM : How recovered paper imports are dominating the Indian paper trading business?
NS : Imported paper is very important from the last 20 to 30 years. It is very important requirement of the country, as said earlier in India we get 75% of recycled papers. When one paper is manufactured we can recycle it up to 5 to 6 times, but it may lose its fibre in each cycle like 17 to 18%. We should add some new pulp to the recycle. As our recovery is less, we seek for imported papers which is virgin quality 35-40% and need to sustain the quality in the industry. When the newspaper is recycled to make the premium quality paper, virgin paper is needed, to fulfil the requirement. We need imported paper in India and more over there is no certain rules, regulations and policies for importing Papers as of now.
PM : Industry barriers or similar faced by your members?
NS : We give different name for same product, as it differ from region to region. Uniformity is required for grades quality. The testing method differs from mill to mill. If the moisture differs then the testing method also differs for which the rejection method and criteria differs. As an association we would like to have the uniformity in the industry.
All Paper mill should fix some criteria for the grades and quality which is acceptable and for rejection process. The testing parameters should be fixed in the paper mills for the grades and quality. When our members supply materials from one state to another, there he finds barriers as his state is accepting his materials but the other state is rejecting or it’s counted as poor quality.These are the challenges and Industrial barriers faced by our members.
PM : What kind of support you are seeking from govt. authorities, which may help your trade?
NS : Firstly we would like to thank Central Pulp & Paper Research Institute (CPPRI) and Indian Pulp & Paper Technical Association (IPPTA). We also attend meetings, seminars and conversation regularly which is organised by the other associations. We attend exhibition like Paperex and other paper related expo’s, to make our association recognise in the industry. We demand whatever the statement is released from the government should be released by our association but not through the other associations which is not related to waste paper.
We want to declare the statement by ourselves and keep our demands in front of the government and industry. Government should have to declare IRPTA as an industry by which the benefits are directly utilized by the association members. As we are part of paper industry, we are supply chain for paper industry, we should also be identified as an industry to attract new trade, to bring new investors, new working hands and to do things better, to get identity and to get industry benefits directly to our vendors.
PM : How Indian paper industry is growing in recent years?
NS : Our Indian paper industry is growing very fast, as we have replaced the packing sector from plastic to paper which is bio-degradable and sustainable. The demand is increased in the market for the paper. The single usage plastic and wooden packaging has capacity, this is also the major reason for fluctuation of the price in the market. Indian paper industry is growing very smoothly.
PM : What is your suggestion on sustainability of paper and how do you approach on this term being a paper trading association?
NS : The recovered paper association will sustain in the market because the demand in the market for paper industry is good. As an association we would like to share this statement that, our Indian citizens should be aware of waste paper. Government of India should conduct the awareness of paper programs from school level, and let the children know how important paper is? And if we handle paper in proper way it can be recycled. Each and every single paper can be recycled and it can be a new paper. But we are using it and throwing it in dustbins, road side without handling it properly.
If we handle every used paper carefully then it can be turned into a new paper. We have to teach and guide our children from school level to the secondary level. Government should conduct awareness program, not only the government but also other paper mill associations and industry people through social media and can upload videos in you tube related to this. The scarcity of Indian Recovered fibre can overcome by this way, we can increase up to 5 to 10% easily.
