May 05, 2005. /Lesprom Network/. The kraft paper manufacturers plan to raise basic prices of kraft paper in all grades by around Rs 1,500 per tonne with immediate effect. Vijay Madnaik, president, Gujarat Paper Mills Association, said the effective rise in the prices will be around 10-12%. The proposed increase in the prices of kraft paper is owing to a rise in prices of basic inputs like raw material waste, power, coal, chemicals and steel. The high clearing and forwarding charges and upward movement in labour charges added to the woes. While coal prices have almost doubled in the last one year, steel prices have more than doubled. There are about 85 kraft paper mills under the Gujarat Paper Mills Association. These have a combined annual turnover of over Rs 2,000 crore. These mills manufacture kraft paper using unconventional raw materials i.e. used kraft paper. The local availability of used kraft paper has been around 40 to 45% of the total requirement of the kraft mills. The rest of the raw material is imported. Prices of imported used kraft paper have risen recently by around 20-25%, while local prices have gone up by around 50%. Used kraft paper accounts for nearly 70% of the total manufacturing costs. Coal costs account for nearly 7% while labour accounts for around four% of the total costs.