The country’s first-ever kraft paper factory located in Sarpang is struggling with a shortage of raw materials. Insufficient supply of waste paper, the primary raw material, has hindered the industry’s ability to operate at full capacity. The Eco Tech Bhutan Kraft Paper Industry located at the Jigmeling Industrial Park started its production earlier this year.
The industry requires 1,000 metric tons of waste paper to produce 50 metric tons of kraft paper in a day.
But due to a shortage of raw materials, the company has only managed to produce 300 metric tons of kraft paper so far. Out of this, around 250 metric tons were exported to India generating Rs 20 M.
Nima Lama, the company secretary said they are facing the shortage as most of the scrap dealers are unaware of their production unit. He said the dealers are exporting the waste paper to India.
Furthermore, even scrap dealers in Sarpang and Gelephu are unwilling to supply it to the industry, prompting the company to increase the rate from Nu 10 to 13 per kilogram of waste paper.
“When they bring it from Thimphu and if it is not compressed, then it might come only two to three tons in one Jumbo truck and it will be more expensive. That could be one reason. Another one is lack of awareness; your waste is our raw material. Maybe we have not done that awareness programme. And another is some of our users must be burning the waste,” said Nima Lama, Company Secretary.
And even if they have enough raw materials, there is a dearth of customers for kraft paper in the country for now. Kraft paper are mostly used for packaging purposes.
Nima Lama explained that their product does not meet the quality standards required by the local industries. He added that the waste paper which has been recycled multiple times affects the quality of kraft paper.
“The demand is very low. The reason behind is the Bursting Factor or BF, the strength of the paper or the quality of the paper which has yet to be improved. To improve the quality, we require OCC papers which are not recycled many times. But whatever we are getting, the waste papers from Bhutan are recycled many times. The demand they require is in BF16 and above in Bhutan.”
The industry is currently seeking approval from the government to import Old Corrugated Containers or OCC papers. OCC papers are used boxes, containers or other packaging made from unbleached and un-waxed paper.
Karma Wangdi, Sarpang
Edited by Tshering Zam
