Oil and Grease Paper Price Trend in India Q2 2026 | Price Trends, Forecast, Chart, Prices and Index

The Oil and Grease Paper Price Trend in India remained firm during the second quarter of 2026, with prices increasing by around 3% compared with the previous quarter. This increase was mainly driven by higher raw material costs, rising energy expenses, and steady demand from the food packaging industry. 

Oil and grease-resistant paper has become an important packaging material for businesses that need to protect food products from oil, moisture, and grease. From burger wrappers and bakery bags to takeaway food packaging, this paper is widely used in everyday applications.

During Q2 2026, the Indian market experienced a combination of strong demand and higher production costs. Paper manufacturers continued their regular production activities, but the cost of making the paper remained high. 

At the same time, packaging businesses continued to purchase grease-resistant paper to meet their daily requirements. Although prices softened slightly in June, the overall market remained firm throughout the quarter.

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Understanding the Oil and Grease Paper Market in India

Oil and grease-resistant (OGR) paper is specially designed to resist the penetration of oil and grease. It is commonly used in food packaging, particularly for products such as burgers, sandwiches, fried snacks, pastries, bakery items, and other oily foods.

The main purpose of this paper is to keep food packaging clean and functional while reducing the chances of oil stains spreading through the material. Its performance depends on factors such as paper quality, grammage, coating technology, and resistance requirements.

In India, demand for grease-resistant paper is closely connected with the growth of quick-service restaurants, bakeries, food delivery services, and takeaway businesses. As more consumers purchase prepared food, packaging companies require a consistent supply of suitable paper products.

The shift towards paper-based packaging has also supported market demand. Many food businesses are exploring alternatives to conventional plastic packaging, particularly where paper can meet their performance and packaging requirements. However, the suitability of paper depends on the specific application, its resistance properties, and the requirements for disposal or recycling.

These factors have helped maintain steady demand for oil and grease-resistant paper in India during Q2 2026.

Oil and Grease Paper Price Trend in India During Q2 2026

The Indian market recorded an increase of approximately 3% in oil and grease-resistant paper prices during Q2 2026 compared with Q1 2026. The upward movement reflected higher input costs, increased manufacturing expenses, and healthy demand from the food packaging sector.

At the beginning of the quarter, manufacturers continued to face pressure from the cost of bleached chemical pulp, specialty barrier chemicals, and functional coating additives. These materials play an important role in producing paper that can resist oil and grease while maintaining the required quality.

Energy expenses also contributed to the overall cost pressure. Paper manufacturing requires energy for processing, drying, finishing, and other production activities. When energy costs increase, manufacturers may face higher operating expenses, which can influence the prices offered to buyers.

Demand remained another important factor. Food packaging converters, bakeries, quick-service restaurants, and takeaway packaging businesses continued to support consumption. Since these businesses require packaging materials regularly, their purchasing activity helped maintain a firm market environment.

However, the upward trend was not completely uniform throughout the quarter. In June 2026, prices declined by around 1% compared with May. This slight decrease was mainly associated with improved product availability and softer procurement activity.

Despite this monthly correction, the overall quarterly trend remained positive, with prices approximately 3% higher than in the previous quarter.

Major Factors Affecting Oil and Grease Paper Prices

Several factors influenced the Oil and Grease Paper Prices in India during Q2 2026. Understanding these factors helps buyers and packaging businesses better understand market movements.

1. Rising Raw Material Costs

Raw materials are among the most important factors affecting paper prices. Bleached chemical pulp forms a key part of the production process, while specialty barrier chemicals and functional coating additives help provide the required resistance against oil and grease.

When the prices of these materials increase, manufacturers face higher production expenses. Depending on market competition, inventory levels, and customer demand, some of these additional costs may be reflected in selling prices.

During Q2 2026, rising feedstock costs remained one of the main reasons behind the firm price trend in India.

2. Higher Energy and Manufacturing Expenses

Energy is required throughout the paper production process. Changes in electricity, fuel, and other operating costs can influence the final manufacturing cost.

In addition, manufacturers must manage expenses related to machinery maintenance, labour, processing, and quality control. When several costs increase at the same time, maintaining previous selling prices becomes more difficult.

These conditions supported the upward movement in oil and grease-resistant paper prices during the quarter.

3. Strong Demand from Food Packaging

Food packaging continued to be an important source of demand. Quick-service restaurants, bakeries, food delivery businesses, and takeaway outlets use grease-resistant paper for a wide range of products.

These businesses need packaging that is practical, hygienic, and suitable for handling oily foods. As a result, regular packaging requirements can provide consistent support to paper consumption.

During Q2 2026, healthy demand from these end-use sectors helped offset the impact of higher prices and supported the Indian market.

4. Supply and Logistics Challenges

International shipping conditions also influenced the market. Geopolitical tensions following the US-Israel conflict with Iran in March 2026 contributed to concerns about shipping routes and transportation costs.

Disruptions around important maritime routes, including the Strait of Hormuz region, increased pressure on freight and energy expenses across the wider supply chain. Such developments can affect the cost of imported pulp, chemicals, and other industrial inputs.

Although domestic mills maintained relatively stable production, higher input and transportation costs contributed to a moderately tight supply situation.

5. Changes in Purchasing Activity

Market prices are influenced not only by production costs but also by the timing of purchases made by packaging converters and other buyers.

When buyers expect prices to rise, they may purchase additional material to meet future requirements. In contrast, when prices are high or inventory levels are sufficient, they may reduce or postpone new orders.

In June 2026, softer procurement activity and improved product availability contributed to a decline of around 1% compared with May. This shows how short-term purchasing decisions can influence prices even when the broader market remains firm.

Oil and Grease Paper Price Chart: Q2 2026 Market Movement

The Oil and Grease Paper Price Chart for India during Q2 2026 reflects an overall upward trend, followed by a modest correction towards the end of the quarter.

The main price movements can be summarised as follows:

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  Quarterly comparison: Prices increased by approximately 3% compared with Q1 2026.

  
  


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  April to May: The market remained supported by higher input costs, manufacturing expenses, and steady packaging demand.

  
  


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  June 2026: Prices declined by around 1% compared with May as product availability improved and procurement activity softened.

  
  


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  Overall quarterly direction: Despite the June decline, prices remained firm across Q2 2026.

  
  

These figures indicate the general direction of the market rather than exact monthly price quotations. A complete numerical chart would require verified monthly prices for the same grade, specification, and trading location.

For meaningful comparisons, buyers should consider the relevant grade and specification, including 40–50 GSM KIT-7 white oil and grease-resistant paper, as well as the applicable ex-Kolkata domestic trading basis. Comparing different grades or delivery terms may produce misleading conclusions.

Oil and Grease Paper Price Index: What Does It Indicate?

The Oil and Grease Paper Price Index helps describe the overall direction of market prices over a particular period. It can be useful for understanding whether prices are increasing, decreasing, or remaining relatively stable.

During Q2 2026, the Indian market maintained a firm price environment because of higher production costs and consistent demand from packaging businesses. The approximately 3% quarterly increase indicated that upward cost pressures were stronger than the factors limiting price growth.

The June decline of around 1% compared with May showed that the market also experienced some short-term easing. Improved availability and reduced purchasing activity helped moderate prices, even though raw material and energy costs remained important considerations.

An index is particularly useful when buyers want to compare different periods without focusing only on a single price quotation. However, an exact numerical index value cannot be established from percentage movements alone. It requires a defined base period and a consistent series of verified prices.

For businesses purchasing oil and grease-resistant paper regularly, monitoring the index alongside actual supplier quotations can provide a more complete picture of market conditions.

Oil and Grease Paper Prices: Impact on Buyers and Manufacturers

The movement in Oil and Grease Paper Prices during Q2 2026 had practical implications for both buyers and manufacturers.

For packaging converters, higher paper prices can increase the cost of producing food wrappers, bags, sheets, and other packaging products. Businesses operating on tight margins may need to review their purchasing schedules, stock levels, and packaging costs to manage these changes.

Restaurants, bakeries, and takeaway businesses may also experience indirect cost pressure when their packaging suppliers adjust prices. The final impact depends on purchasing volumes, contract terms, product specifications, and the ability of suppliers to absorb part of the increase.

For manufacturers, rising raw material and energy expenses can put pressure on production margins. Even when demand remains healthy, higher operating costs can make it more difficult to maintain profitability. Stable production therefore does not necessarily mean that manufacturing costs or market availability remain unchanged.

The June price correction provided some relief to buyers, but it did not completely reverse the quarterly increase. Businesses should therefore avoid making purchasing decisions based on a single month's movement.

Instead, regular monitoring of quotations, inventory levels, supplier lead times, and raw material trends can help businesses respond more effectively to changing market conditions.

Oil and Grease Paper Price Forecast for India

The outlook following Q2 2026 depends on several market factors, including pulp prices, coating chemical costs, energy expenses, freight rates, and demand from food packaging businesses.

If raw material and transportation costs remain elevated, manufacturers may continue to face pressure to maintain higher selling prices. Consistent demand from quick-service restaurants, bakeries, and takeaway packaging converters could also provide support to the market.

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On the other hand, improved product availability, lower input costs, and weaker purchasing activity could limit further price increases. The decline observed in June demonstrates that short-term corrections are possible even when the quarterly trend remains positive.

The growing interest in paper-based packaging may continue to support demand for grease-resistant paper, but the pace of growth will depend on actual purchasing requirements, product performance, and the economics of alternative packaging materials.

For the coming quarters, the market can reasonably be described as cost-sensitive, with a firm underlying tone based on the conditions observed in Q2 2026. However, this should not be treated as a guaranteed price forecast. The direction of future prices will depend on how input costs, supply conditions, and customer demand develop.

Buyers should follow monthly market updates and compare prices for equivalent grades and delivery terms before finalising large orders.

The Oil and Grease Paper Price Trend in India remained firm during Q2 2026, with prices increasing by approximately 3% compared with the previous quarter. Higher pulp costs, specialty coating chemicals, energy expenses, and transportation challenges were the main factors supporting the increase. At the same time, steady demand from food packaging, quick-service restaurants, bakeries, and takeaway businesses helped maintain market consumption.

June brought a modest correction, with prices declining by around 1% compared with May because of improved availability and softer procurement activity. However, this monthly decrease did not change the overall upward direction of the quarter.

The Oil and Grease Paper Price Chart and Oil and Grease Paper Price Index can help buyers understand market direction, while actual supplier quotations remain important for evaluating purchasing costs. Looking ahead, raw material prices, freight conditions, manufacturing expenses, and packaging demand will remain key factors to watch.

Overall, the Indian oil and grease-resistant paper market ended Q2 2026 on a firm note. For manufacturers, converters, and packaging buyers, staying informed about price trends and maintaining flexible purchasing plans will be important for managing costs and responding to future market changes.

  

About Price-Watch™ 

 

Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity. 

 

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