Govt approves 26% increase in rates of print advertisements amid rising newsprint costs

New Delhi: The Ministry of Information and Broadcasting, on Monday, approved a revised rate structure for government advertisements in print media, announcing a 26 per cent increase in base rates as well as new premiums for colour and preferential placements. It said the move is to strengthen India’s print media ecosystem at a time when the sector faces rising costs and growing competition from digital platforms.

According to the notification issued by the government, the rate for black-and-white government advertisements for daily newspapers with one lakh copies has been increased from Rs 47.40 to Rs 59.68 per sq. cm. The ministry has also accepted the Rate Structure Committee’s recommendation to introduce premium charges for colour advertisements and preferred positioning in print publications.

The CBC is the nodal publicity unit in the Ministry of I&B, releasing advertisements on behalf of various central ministries and departments. The present rate structure, recommended by the 8th Rate Structure Committee, was implemented on January 9, 2019, with a validity of three years.

To carry out the latest revision, the ministry had formed the 9th Rate Structure Committee on November 11, 2021, under the chairmanship of the Additional Secretary & Financial Adviser (I&B). The committee deliberated extensively between November 2021 and August 2023, considering representations made by major industry bodies like the Indian Newspaper Society, All India Small Newspapers Association, and Small-Medium-Big Newspapers Society. It looked at a whole gamut of cost parameters including inflation in newsprint prices, wage revisions, imported newsprint trends and processing costs, among others, before submitting its report on September 23 in 2023.

According to officials, the revised rates are expected to give print publications, particularly small and medium newspapers that depend heavily on government advertisements, crucial financial support. Additional revenues are expected to help media houses deal with increasing production costs, ensure the sustainability of operations, and invest in quality journalism. The government also believes the revision aligns with its larger communication strategy for effective outreach across a diverse media landscape, recognising that print continues to play a vital role in reaching citizens across the country.