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India's CCI Launches Antitrust Probe into Paper Mills Over Alleged Price-Fixing for School Supplies

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  Published in Sports and Competition on Wednesday, November 12th 2025 at 7:02 GMT by reuters.com

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India Raids Paper Mills in Antitrust Probe Over School Supplies, Body Sources Say

In a move that could reverberate across the country’s education and manufacturing sectors, the Competition Commission of India (CCI) launched a formal antitrust investigation into a group of paper mills that supply schools across the nation. The probe, which began with a series of high‑profile raids last week, follows complaints from a coalition of school boards alleging that the mills have engaged in price‑fixing and exclusive‑contract practices that artificially inflate the cost of school supplies.

The CCI’s Directorate of Enforcement seized documents, computers and invoices from ten major paper‑producing companies, ranging from well‑established national players such as Suryam Paper Ltd. and Rajasthan Paper Industries to smaller regional firms like Nashik Paper Co. The raid was carried out in Delhi, Mumbai, Jaipur, and Bangalore, with officials saying that the list of targeted firms is likely to expand as more evidence surfaces.

The Allegations

At the heart of the investigation are allegations that the paper mills have been collaborating to set a minimum price floor for school‑grade paper and to coordinate the distribution of contracts among the major school‑chain suppliers. According to sources within the school‑boards coalition, which represents over 30,000 schools nationwide, the mills have been awarding exclusive supply contracts to a handful of distributors, effectively eliminating competition and allowing the mills to charge premium prices.

“We are not alone in our concerns,” said Dr. Asha Patil, chairperson of the National Association of School Boards (NASB). “Our members have documented a consistent pattern of price hikes that cannot be explained by cost increases or inflation. The mills’ coordinated actions suggest a collusive scheme aimed at securing higher margins at the expense of the educational institutions that rely on their supplies.”

The NASB has submitted a formal complaint to the CCI, citing documented instances of price hikes in the last 12 months. “In the period between September 2024 and September 2025, the average price per ream of 80‑gram school paper rose by 18%—well above the 4% inflation rate observed in the paper sector overall,” the complaint reads. “We suspect that this rise is the result of deliberate price‑fixing.”

How the Probe Works

The CCI’s investigation is underway under the purview of the Competition Act of 2002, which prohibits agreements that have an appreciable effect on competition. The Commission’s approach involves a mix of documentary evidence, price analysis, and witness interviews. The raids were reportedly conducted under Section 30 of the Act, which allows the CCI to take possession of evidence in the case of suspected anti‑competitive behavior.

“The CCI has gathered a substantial volume of data,” said Anil Kapoor, the Commission’s Director of Enforcement. “Our preliminary analysis indicates that the mills in question have synchronized price increases and have restricted the availability of paper to non‑exclusive distributors. We will continue to probe for evidence of a coordinated plan to fix prices.”

The Commission also requested a full financial audit of the mills’ pricing structures and supply chain contracts. “We will examine whether these mills have engaged in any price‑matching agreements or whether they have coordinated the timing of price changes,” Kapoor added.

Industry Reaction

The paper industry has largely rebuffed the allegations, arguing that the price hikes reflect genuine increases in raw‑material costs. Suryam Paper Ltd. issued a press statement saying, “We have no collusion. Our price adjustments were made in response to the rising cost of pulp and logistics. The Commission’s investigation is unwarranted and may damage the industry’s reputation.”

Similarly, Rajasthan Paper Industries called the probe “premature” and noted that the firm has been an advocate for open competition, offering competitive pricing to a broad customer base. “We remain committed to transparency and will cooperate fully with the Commission,” the statement said.

Industry trade groups, such as the National Paper Manufacturers Association (NPMA), have also weighed in, urging the CCI to consider the broader economic impact of potential penalties. “While we are open to scrutiny, we caution that punitive measures should not undermine the industry’s ability to supply affordable school materials,” said NPMA president Rajeev Singh.

Implications for Schools and the Economy

The outcome of the investigation could have significant implications for the education sector. If the CCI finds evidence of collusion, the mills could face fines that amount to up to 10% of their annual turnover, along with directives to alter supply contracts and to comply with anti‑trust regulations. In the worst case, the Commission could impose structural remedies, such as divestitures or mandatory price caps.

The potential cost savings for schools could be substantial. A recent analysis by the Education Policy Institute estimated that a 5% reduction in paper costs would free up approximately INR 200 million for schools across the country—money that could be redirected to hiring additional teachers or purchasing digital learning tools.

Moreover, the investigation could have a ripple effect on the broader Indian paper industry, which is valued at roughly INR 70 billion annually. A crackdown on price‑fixing could encourage greater competition and spur innovation in paper production, particularly in eco‑friendly and recycled paper segments that are gaining popularity.

Related Reports

The article references a prior Reuters piece from March 2024 titled “India’s Competition Commission launches probe into packaging industry” that examined similar anti‑competitive practices in the packaging sector. The March report highlighted the Commission’s increasing focus on supply‑chain collusion, setting a precedent for the current paper‑mill investigation.

Additionally, the article links to the Ministry of Education’s recent statement, issued on 10 November 2025, announcing a joint task force to monitor school supply chains. The Ministry’s spokesperson emphasized the importance of ensuring fair pricing for essential educational materials and pledged cooperation with the CCI.

Conclusion

The raids on paper mills and the ensuing antitrust investigation represent a critical juncture for India’s educational and manufacturing landscapes. While the CCI’s investigation is still in its early stages, the allegations of price‑fixing and exclusive contracting signal a potential breach of competition law that could have lasting effects on school budgets and industry practices.

Stakeholders—from school boards and students to industry associations—are watching closely as the Commission navigates the complex interplay of market forces, regulatory frameworks, and the nation’s educational needs. The coming weeks will reveal whether the Commission’s findings substantiate the school boards’ claims, and whether the paper industry will be compelled to adopt more transparent and competitive practices in the future.