The Kraft Paper Price Trend in the second quarter of 2026 showed a clear increase in India, with prices rising due to higher raw material costs, a weaker Indian Rupee, increasing transportation expenses, and steady demand from the packaging industry.Β
Compared with the first quarter of 2026, the market experienced stronger price movements as paper manufacturers faced growing pressure on their production costs. These changes affected kraft paper producers, packaging manufacturers, paper converters, wholesalers, and buyers across different regions of the country.
Kraft paper is widely used for making corrugated boxes, paper bags, wrapping materials, and other packaging products. Because packaging is an important part of many industries, changes in kraft paper prices can influence the overall cost of transporting, storing, and selling goods.Β
During Q2 2026, the Indian market experienced rising prices as manufacturers tried to manage higher expenses while meeting regular customer demand.
The quarter was particularly challenging because several cost factors increased at the same time. The depreciation of the Indian Rupee made imported raw materials more expensive, while higher freight, energy, and domestic transportation costs added further pressure.Β
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As a result, the Kraft Paper Price Trend remained firm throughout the quarter, with manufacturers passing a significant portion of their additional costs on to buyers.
Kraft Paper Price Trend in India During Q2 2026
The Indian kraft paper market recorded a notable increase during April, May, and June 2026. Prices rose across most regions, with the broader market experiencing an increase of around 2% during the quarter. However, specific grades and trading locations recorded different movements depending on their production costs, availability, and local demand.
The Natural Brown Kraft Paper grade traded ex-Ludhiana, with specifications of 100 GSM, 25 BF, and MG finish, recorded a 3.53% increase compared with Q1 2026. Its monthly price movement also showed an upward trend during the quarter, with a reported increase of 4.56% month on month during the period.
These figures indicate that kraft paper prices did not move equally across every grade and location. General market movements can differ from the performance of an individual product because each grade has its own raw material requirements, manufacturing expenses, and customer base.
One of the main reasons behind the increase was the rising cost of imported recovered paper. Indian mills use domestic recovered paper along with imported Old Corrugated Cardboard, commonly known as OCC, to produce recycled kraft paper. When imported fiber becomes more expensive, manufacturers face higher production costs. If other expenses also increase, mills may need to revise their selling prices to maintain their operations.
Why Did Kraft Paper Prices Increase in Q2 2026?
Several factors contributed to the rise in Kraft Paper Prices during the second quarter of 2026. Understanding these factors helps buyers and packaging businesses make better purchasing decisions.
- Depreciation of the Indian Rupee
The weakening of the Indian Rupee against the US Dollar was one of the most important factors affecting the market. During Q2 2026, the Rupee depreciated by approximately 6β8%, increasing the domestic cost of imported materials.
International purchases are often priced in US Dollars. When the Rupee loses value, Indian buyers need more local currency to purchase the same quantity of imported goods, even if the dollar price remains unchanged.
This creates additional pressure on paper manufacturers that depend on imported recovered fiber, wood pulp, chemicals, and other papermaking inputs. Higher procurement costs can eventually lead to higher selling prices for kraft paper.
- Higher Imported OCC Costs
Old Corrugated Cardboard is an important raw material for producing recycled kraft paper. Indian manufacturers use recovered paper to make the fiber needed for packaging grades.
During the quarter, imported OCC costs increased, while the weaker Rupee made these purchases even more expensive. This combination affected mill purchasing budgets and production planning.
When raw materials become costly, manufacturers have limited options. They can try to absorb the additional expense, improve production efficiency, or increase selling prices. In a market where supply is tight and demand remains steady, price increases become more likely.
- Rising Energy and Transportation Expenses
Producing kraft paper requires electricity, fuel, water, machinery, and regular transportation of raw materials and finished products. An increase in any of these expenses can affect the final cost of paper.
In Q2 2026, higher electricity, fuel, and domestic freight expenses added to the pressure already created by imported fiber costs. Manufacturers also faced higher international shipping and logistics expenses amid geopolitical tensions and disruptions to global shipping routes.
These additional costs made it more expensive to move raw materials to mills and finished paper to packaging manufacturers. Consequently, transportation and energy expenses became important contributors to the upward Kraft Paper Price Trend.
- Steady Demand From the Packaging Industry
Demand for kraft paper remained stable during the quarter. The material continued to be used in corrugated packaging, food packaging, paper bags, labels, e-commerce shipments, and industrial wrapping.
The growth of online shopping has increased the importance of reliable packaging materials. Retailers, manufacturers, warehouses, and logistics businesses need boxes and wrapping products to protect goods during storage and transportation.
Even when paper prices increase, many businesses cannot completely stop purchasing packaging materials because they are necessary for daily operations. This steady demand helped support prices during Q2 2026.
- Limited Supply and Mill Pricing Decisions
Domestic supply conditions also played a role in the market’s price movement. When raw materials become expensive and availability remains limited, manufacturers may operate more carefully to balance production with customer requirements.
During Q2 2026, mills maintained disciplined production rates while managing rising costs and available supply. This helped support firmer prices, particularly when buyers competed for available spot volumes.
For converters and packaging manufacturers, the result was a more expensive purchasing environment. Businesses had to manage higher input costs while continuing to serve their own customers.
Monthly Kraft Paper Price Trends: April, May and June 2026
The monthly movement during Q2 2026 reflected the combined influence of higher input costs, currency weakness, and stable packaging demand.
April 2026: Prices Began to Strengthen
April marked the beginning of a stronger pricing phase. Paper manufacturers introduced cost-related price revisions as the impact of imported raw material expenses and currency depreciation became more noticeable.
Buyers started facing higher purchasing costs, particularly for grades used in corrugated boxes and other packaging applications. Businesses with regular paper requirements had to review their procurement budgets and order quantities.
May 2026: Continued Upward Pressure
In May, kraft paper prices continued to receive support from expensive imported fiber, higher freight costs, and elevated manufacturing expenses.
Packaging converters had to balance their purchasing requirements with their available working capital. Some buyers may have preferred smaller, more frequent orders to manage cash flow, while others needed to secure enough material for ongoing production.
The market remained firm as manufacturers attempted to recover their increased operating costs through higher selling prices.
June 2026: Higher Costs Continued to Support Prices
During June, the effects of Rupee depreciation and increased import costs continued to influence the market. Domestic packaging demand remained resilient, while supply conditions limited the ability of buyers to find cheaper material easily.
By the end of the quarter, the overall market reflected a stronger pricing environment than in Q1 2026. The Natural Brown grade traded ex-Ludhiana recorded a quarterly increase of 3.53% compared with the previous quarter, while the reported month-on-month movement during the quarter reached 4.56%.
These figures highlight the importance of examining individual grades and locations rather than relying on a single number to understand the entire Indian kraft paper market.
Kraft Paper Price Chart: How to Understand the Market Movement
A Kraft Paper Price Chart is a useful tool for tracking changes in paper prices over time. Buyers, traders, and packaging manufacturers can use a chart to compare monthly prices, identify upward or downward movements, and understand whether the market is becoming more expensive.
For Q2 2026, a monthly price chart for Natural Brown Kraft Paper traded ex-Ludhiana would help illustrate how prices strengthened from April through June.
When reviewing a Kraft Paper Price Chart, buyers should focus on a few important points:
- Monthly price movement: Check whether prices increased or decreased during each month.
- Quarterly comparison: Compare Q2 2026 with Q1 2026 to understand the overall direction of the market.
- Grade specifications: Make sure the comparison uses the same GSM, BF, finish, and paper grade.
- Trading location: Prices from different locations may vary because of freight costs, local demand, and supply availability.
- Raw material costs: Consider whether recovered paper, energy, and transportation expenses are rising or falling.
A reliable chart should use actual recorded prices for the relevant grade and period. Since the exact price values are not provided in the available Q2 2026 information, it is better to describe the confirmed percentage changes rather than invent monthly prices.
Kraft Paper Price Index and Market Performance
The Kraft Paper Price Index helps explain the general direction of the market over a specific period. Depending on how it is calculated, an index can track changes in prices for a particular grade, region, or group of kraft paper products.
For buyers, an index provides a convenient way to understand whether market conditions are becoming more expensive. Instead of looking at individual transactions alone, businesses can examine broader price movements and compare different periods.
During Q2 2026, the Indian kraft paper market experienced upward price pressure as imported raw material costs, currency depreciation, freight expenses, and domestic operating costs increased. The broader market recorded a rise of around 2%, while the Natural Brown grade traded ex-Ludhiana recorded a 3.53% increase compared with Q1 2026.
These figures should be interpreted according to their respective market coverage. A broad market movement and a grade-specific price change are not necessarily calculated using the same method. Therefore, they should not automatically be treated as identical measures.
A useful Kraft Paper Price Index should clearly identify its base period, product specifications, location, and calculation method. This makes comparisons more meaningful and helps purchasing teams avoid decisions based on incomplete information.
Impact on Packaging Manufacturers and Paper Converters
Rising kraft paper prices affect more than paper mills. Packaging manufacturers and converters also face pressure because kraft paper is one of their main production inputs.
When the cost of paper increases, the cost of producing corrugated boxes, paper bags, wrapping materials, and other packaging products may also rise. However, packaging businesses cannot always pass the full increase on to their customers immediately.
This creates a difficult situation for companies operating with fixed-price contracts or limited profit margins. If the selling price of finished packaging remains unchanged while the cost of paper rises, the business earns less from each order.
Working capital is another concern. Businesses may need to spend more money to purchase the same quantity of paper they bought in an earlier quarter. This can affect cash flow, inventory planning, and the ability to manage other operating expenses.
To manage these challenges, buyers can compare supplier quotations, monitor price movements, plan purchases according to actual demand, and maintain suitable inventory levels. Regular communication with suppliers can also help businesses prepare for price revisions rather than reacting at the last moment.
Kraft Paper Price Forecast for the Coming Months
The Kraft Paper Price Forecast after Q2 2026 depends on several factors, including currency movements, imported OCC prices, domestic recovered paper availability, energy expenses, freight rates, and demand from the packaging industry.
If the Rupee remains weak and imported raw materials continue to be expensive, kraft paper prices may remain under upward pressure. Continued increases in transportation and energy costs could also make it difficult for mills to reduce their selling prices.
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On the other hand, improved domestic recovered paper availability, lower freight expenses, or a stronger Rupee could help reduce production costs. If supply improves faster than demand, price increases may slow or the market could experience some correction.
Demand will remain another important factor. Packaging requirements from food products, retail, e-commerce, and industrial goods can support the market. However, if buyers reduce orders or economic activity weakens, manufacturers may find it harder to maintain higher prices.
It is important to treat this forecast as a possible market outlook rather than a guaranteed outcome. The Q2 2026 data confirms that prices increased during the quarter, but it does not establish the exact direction or size of future price movements.
Businesses should therefore follow monthly market updates and compare actual supplier quotations before making large purchasing decisions.
The Kraft Paper Price Trend in Q2 2026 showed a clear upward movement in India, supported by currency depreciation, higher imported OCC costs, rising energy and freight expenses, and steady demand from the packaging sector. The broader market recorded an increase of around 2%, while Natural Brown Kraft Paper traded ex-Ludhiana, with specifications of 100 GSM, 25 BF, and MG finish, increased by 3.53% compared with Q1 2026.
The quarter demonstrated how changes in the currency market and international raw material prices can influence the cost of a widely used industrial material. Even when demand remains stable, manufacturers can face significant pressure if production and transportation expenses increase at the same time.
For packaging manufacturers, converters, and paper buyers, understanding Kraft Paper Prices is essential for effective purchasing and cost management. Tracking a Kraft Paper Price Chart and reviewing a suitable Kraft Paper Price Index can help businesses identify market movements and compare prices across different periods.
Looking ahead, the direction of kraft paper prices will depend on raw material availability, exchange rates, transportation costs, production conditions, and packaging demand. Regular monitoring of these factors can help businesses plan purchases more carefully, manage working capital, and respond to changing market conditions.
Overall, Q2 2026 highlighted the importance of following price trends closely. A clear understanding of market developments can help buyers make informed decisions and prepare for future changes in the Indian kraft paper industry.Β
About Price-Watchβ’Β
Price Watchβ’ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watchβ’ 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 Watchβ’ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watchβ’ transforms market volatility into actionable opportunity.Β
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