Indian paper stocks surged today following the government’s imposition of a Minimum Import Price (MIP) on select paper products, effective until March 31, 2026, aimed at curbing cheap imports.

The MIP is expected to strengthen domestic pricing power and drive higher sales volumes. Analysts note that companies with strong domestic production, like JK Paper and BILT, stand to gain the most in both short-term stock rallies and medium-term profitability.

Top movers in the sector:

• JK Paper – up 3.8%, supported by expectations of improved margins.
• Ballarpur Industries Ltd (BILT) – up 3.5%, as relief from low-cost imports boosts investor sentiment.
• West Coast Paper Mills – up 2.9%, benefiting from stabilized domestic pricing.
• International Paper APPM – up 2.5%, with specialty papers likely to see reduced import pressure.

MIP means essentially setting up a minimum price at which a product can be imported. Any imports below this price are not allowed or may attract penalties. What  this means for Indian paper companies, where imports from Indonesia or China were often cheaper than local paper, is that with MIP in place, these imports become costlier, so Indian paper producers like JK Paper or BILT can compete better and maintain profitability.