The Indian market for Oil & Grease Resistance (OGR) Paper is witnessing a softer trend, primarily due to weak demand across Asian markets and increasing supply pressure. Falling kraft pulp prices, coupled with aggressive capacity expansions by Chinese paper manufacturers, have intensified competition and weighed on market sentiment. At the same time, domestic buyers remain cautious, purchasing mainly based on immediate requirements, while suppliers continue to offer competitive prices to maintain sales volumes.
Adding to the pressure, lower export demand and ample material availability in the domestic market have further limited upward pricing momentum. As a result, the overall sentiment in India’s OGR paper market remains subdued, creating a challenging environment for producers and traders alike.
Before the Decline: What Supported OGR Paper Prices?
Before the recent correction, India’s OGR paper market remained largely stable due to balanced supply-demand fundamentals and firm production costs. Steady demand from food packaging, bakery wrapping, quick-service restaurants (QSRs), and FMCG applications supported consumption across the country.
At the same time, relatively higher pulp costs and stable operating rates among paper mills helped maintain price levels. Market participants were able to pass on a portion of their production costs to buyers, keeping OGR paper prices largely unchanged through most of April and early May.
However, as global market conditions shifted, particularly in Asia, the stability began to weaken. Increased production capacity in China led to additional supply entering regional markets, while weakening demand reduced buying activity. These developments gradually started exerting downward pressure on OGR paper prices.
Price Movement Update: OGR Paper Market Sees Mild Correction
What is happening in India’s OGR paper market right now? After remaining stable for nearly a month, prices witnessed a mild correction during the week ending 22 May 2026.
The decline was primarily driven by weak regional demand, falling kraft pulp prices, and growing supply availability across Asia. In India, domestic oversupply and reduced export opportunities further intensified competition among suppliers. With buyers maintaining a cautious procurement strategy, sellers were forced to offer more competitive prices to secure orders.
As a result, OGR Paper 40–50 GSM Kit-7 (White) Ex-Kolkata prices declined by approximately 1.66% during the period, while remaining stable in the surrounding weeks.
Source: Price-Watch™ OGR Paper Prices
Oil & Grease Resistance (OGR) Paper Market Outlook: What Lies Ahead?
Looking ahead, the Indian OGR paper market is expected to remain under pressure in the near term. Ample supply availability, lower pulp costs, and continued competition from Asian suppliers are likely to limit any significant price recovery.
Unless export demand improves or mills implement production discipline, prices may continue to move within a narrow range. For now, buyers are expected to benefit from comfortable supply conditions, while producers and traders may continue facing margin pressure in an increasingly competitive market.
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