The current political turmoil and the resulting uncertainty is now forcing manufacturers to shelve their restructuring plans which they had started formulating after the market reacted positively to an increase in paper prices.

Speaking to The Financial Express, secretary, Indian Paper Manufacturers' Association R Narayan Moorthy said that faced by intense competition from imported paper, paper manufacturers had not been able to increase their prices since 1996 and had run into huge losses. However, with conditions in the domestic market having improved somewhat in the last two months, paper manufacturers had increased prices by a small margin. ``To the industry's relief, the market has responded positively to the increase in price.''

According to Moorthy, the price increase would not add to the industry's profit but would certainly help in cutting losses.

Moorthysaid that the industry had started to make various plans to improve its performance but with the advent of political crisis at the centre, the plans had to be suspended. ``Since we do not know where the industry is heading towards, how can businessmen take any decisions," he said.

"The market forces are not getting an opportunity to take the shape of a pattern on the basis of which entrepreneurs usually make plans, he further added.''

IPMA's plan to hold discussion with the government on involving the corporate sector in afforestation of degraded forest lands has also been put on hold because of the political uncertainty. A meeting with government officials fixed for the first week of May to discuss afforestation plans had to be cancelled following the collapse of the ruling party, said Moorthy. ``The decision for undertaking afforestation is strictly a political one. Bureaucrats can make plans, but they cannot give the green signal.'' Moorthy said that there were no chances of the matter being addressedsoon.

``Officials would not make any plans because if the upcoming government is not in.''