The newsprint cost comprises as much as 40%-50% of all operational costs for the newspaper publishers.
The price of imported newsprint has risen 32% to $730 per ton from $550 a year ago. Indian newsprint is priced at Rs 34,000 per ton this quarter, which is 25% increase over last year.
This has raised concern for the newspaper publishers who feel that this will be a repeat of the year 2008, where the pages had to be cut down, delay in new editions and costs passed on to the consumers and advertisers.
Bhausaheb Patil, technical director at Sakal Papers, says: "Most publications are feeling the heat of the spiralling operational costs resulting from newsprint becoming costlier. They will look to combat the increase in cost in various ways. Some may limit circulation."
Upendra Nayak, deputy general manager production at The Times Of India, said: "Any increase in the cost of newsprint can affect profitability of newspaper organisations, and thus their ability to deliver quality products. It is true that the price of newsprint has been rising in the last couple of years putting pressure on newspaper revenues."
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Publishers express concern over the newsprint prices
Newspaper publishers might face tough times as the newsprint prices are expected to touch $800 per ton in the coming months.