This is much higher than the projected five per cent growth rate.

The demand for paper and paper board is set to increase to 9.7 million tonnes per annum by the year 2010 which will in turn grossly increase the demand for starch in the country, according to a report prepared by Fausto Dias, former vice-president of Anil Starch Products.

The prospects for starch industry industry are bright if the per capita consumption figure of 0.6 kilograms is taken into consideration against the world average of 6.5 kilograms.

India's per capita consumption is much lower than Pakistan's 2.00 kilograms which has similar habits and consumption patterns.

With changes in the economy, there should be a spurt in demand for starches, both for industrial applications and for usage in the food industry.

One of the major areas for increase in demand for starch is expectedfrom the paper and corrugated board industry. The per capita consumption of paper and board in India is one of the lowest in the world at 3.3 kilogram which is much lower than the average consumption of 14 kg in Asian countries and the world average of 45 kilograms.

The demand in India is expected to grow, driven by the general economic and social development such as increased purchasing power, urbanisation and consumerism, increased literacy and development of the educational sector.

According to a conservative estimate, the demand for paper and board will increase to 9.7 million MT against the present 3.5 million MT per annum.

Besides, the increased demand for paper, there will be a shift to better grades of paper. This together with the increased use of inferior types of pulp and pulp derived from recycled paper, will need the increased use of starch to produce quality paper.

Based on the starch use pattern in the United States, the demand for starch, both paper and board, is expected to be about100,000 MT per annum early in the next century from the existing level of about 25,000 MT.