Bagasse Based Paper and Newsprint in India: Economic and Policy Issues

Abstract

The perceptions of absolute scarcity of forest based cellulosic materials and high anticipated demand for paper appear to have been responsible for the policy emphasis on unconventional materials for paper and newsprint making in India. Among the unconventional materials, bagasse has been emphasized through fiscal incentives including excise duty exemptions. Based on a study of seven bagasse based paper and newsprint units, Tirath Gupta and Vinod Ahuja show that enhancing residual bagasse through drying it before firing the boilers and using that material for pulping would be more desirable compared to generating surplus bagasse by installing coal fired boilers at sugar mills. The most desirable and sustainable solution in the long- run, according to them, would be to integrate the production processes of paper and cellulosic materials.