School Book Publishers struggling due to the skyrocketing increase in input costs

on Apr 27, 2022

The Association of School Book Publishers (ASBP) is ruing the massive and sudden increase in input costs. It will not only hit their business but also raise the cost of books for school students. Hence, a struggle for both publishers and consumers.

The Delhi organisation which has over 200 textbook publishers as its members, said that more than half of the input cost for them is paper. Navin Joshi, secretary of ASBP, said, “About 60% of our cost is paper. Suddenly in February-March, the rates just shot up. The paper that was available last year for Rs80/kg is now selling for Rs110/kg.” With the sudden spike in paper cost, publishers found themselves in a struggling position.

Joshi, who has been involved with the textbook publishing business since 1975, said ancillary costs have shot up, thus reducing their ability to adapt. “The carton boxes in which we would pack our books is now selling for double the price. From around Rs40/kg last year, it has shot up to Rs80 and above,” said Joshi.

Besides this, Joshi revealed there have been increments in the cost of printing and binding. “The transportation cost has obviously gone up because of the hike in fuel prices,”

An unexpected hit was faced by publishers during the pandemic years. As schools were closed, the demand for textbooks dropped sharply. “Our sector saw almost 40% of the textbooks being returned. That’s also a thing which publishers have to factor into the account,” said Joshi.

ASBP says their business is 'unique' in light of the fact that practically completely input costs are paid ahead of time, however products are sold on layaway. Joshi said, "Paper is sold with settlement ahead of time. All printing and restricting works are likewise paid either forthright or promptly upon the finish of work. However, we sell totally using a credit card."

School reading material retailers then are at the freedom to return unsold stock, which could conceivably get sold one year from now.

ASBP is aware that major curriculum updates are leading to having to revamp its ecosystem. “We have requested the government to give us at least one year before implementing the new curriculum under NEP 2020. This allows us time to brief our authors, prepare the material, publish and distribute it,” said Joshi.