Apr 11, 2005. /Lesprom Network/. Ballarpur Industries Ltd., India's largest paper company by capacity, plans to again raise product prices by mid-April to meet growing demand, a senior company executive said late Wednesday. "We plan to raise our uncoated paper prices by INR600 ($13.7) a metric ton on April 11," Group Finance Director B. Hariharan told Dow Jones Newswires. Ballarpur had raised paper prices in March by INR1,000 ($22.8) a ton. Hariharan said the decision to hike prices is driven by a combination of strong demand and a sharp rise in pulp prices. Pulp is the key raw material for paper making. "The period between February and July is traditionally considered the peak season for the Indian paper industry as demand for textbooks and note books rise sharply," he said. Although, globally, paper prices are also on the upswing, Hariharan said, firm international pulp prices are likely to trigger price increases in India. Pulp prices are currently at an average $520 a ton compared to $480 a ton 4-5 months ago, said Hariharan. He said there was scope for more price hikes in the future as "international prices are higher than local prices by at least INR6,000 ($137.3) a ton." The firm price trend will sustain as while local demand is growing at the rate of 7%-8% annually, supply is growing only by 3%-4%, said Hariharan. On future plans, Hariharan said Ballarpur is seriously looking at opportunities in plantations overseas. "We are currently interacting closely with the government of Malaysia for allocation of plantations in Sabah," he said, adding, "this is to take care of our pulp needs over the next 4-5 years." Hariharan said Ballarpur is looking overseas for plantations as corporate forestry isn't allowed in India. "We currently have about 40,000 hectares of plantations under farm forestry and are working with over 16,000 farmers." Ballarpur aims to own at least 30% of its annual wood requirement of about 1.2 million tons. Wood is converted into pulp as a primary step toward paper making. Hariharan said the company's long term plan also included building a "big-sized pulp mill overseas, close to our plantations." The proposed mill could have a capacity to make 750 tons to 1,000 tons a day," he said, without specifying further.