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Newsprint cycle
What it is
Newsprint is roughly 35-40% of a publisher's operating cost and is largely imported, so margins swing with global pulp prices, freight and the rupee. Russia has historically supplied over half of India's imported newsprint
The cycle has been violent - costs surged nearly 41% in FY23 on Russia-Ukraine logistics disruption, eased as supply normalised, then tightened again through 2026
Impact on industries
- The dominant swing factor in print profitability, and almost entirely outside management control - a publisher cannot hedge a cost that moves on geopolitics and freight
- Cover prices have historically not covered newsprint cost, so circulation growth can be margin-dilutive and expansion is deliberately restrained
- Renewed cost pressure has forced collective action - the Indian Newspaper Society recommended members impose a 15% advertising surcharge from 1 Aug 2026
- The cycle cuts both ways: softening newsprint prices have driven regional print earnings recoveries without any revenue improvement at all