Gujarat's Morbi has become a major hub for the production of duplex board and recycled paper used in packaging.
Mill owners are looking for robust government support in the upcoming Union Budget due to financial strains.
Due to the severe effects of the global recession, the industry, which formerly had over 150 units, has shrunk to about 70 mills.
Industry representatives are calling for access to high-quality coal, the primary fuel for these units, and reduced duties on waste paper, the main raw material.
The mills provide packaging materials to Indian markets as well as the ceramic tile industry in Morbi.
Many stakeholders hope that the upcoming Union Budget will provide relief because they believe that government support—such as special incentives and duty reductions—is essential to navigating the current slowdown.