World Forestry

MUMBAI (Reuters) - Indian paper firms have raised product prices in April by 1,000-1,500 rupees as cost of pulp - a key raw material - rises globally, officials said.

West Coast Paper Mills has raised prices of uncoated paper, a variety that is used for copier, by 1,250-1,500 rupees a tonne, V. Subbiah, vice president of marketing, told Reuters on Thursday.

Abhishek Industries has also raised prices by 1,000 rupees a tonne, Sharad Dube, head of marketing, told Reuters over the telephone.

While Ballarpur Industries, India's top producer, has not hiked prices in April, it has rolled back the discounts it had offered its customers in March, a company spokesman said.

"Pulp prices are going up and availability is not there. Chemical prices are high," Subbiah said. "Demand looks to be alright now but it will grow in another 3-4 months."

The global pulp and paper market is recovering after a deep tumble at the start of 2009 and companies around the world boosted output as prices rose worldwide.

Hardwood pulp prices are around $750 a tonne and they could rise to $800 in the short term, according to Itau Securities analyst Marcos Assumpcao. Brazil and Chile are the world's largest producers of pulp.

At 1.27 p.m., shares in West Coast Paper Mills were up 1.69 percent at 72.25 rupees, while Abhishek Industries jumped 7.67 percent to 18.68 rupees.

(Reporting by Swati Pandey; Editing by Prem Udayabhanu)

Source: Reuters