Centre backs 26% hike in print ad rates, cites rising input costs

The Information & Broadcasting Ministry has defended its decision to raise government print-advertising rates by 26%, saying the revision is essential to offset escalating input costs and support the financial stability of newspapers across the country. The clarification came after multiple Lok Sabha questions flagged concerns over rising expenditure, editorial implications and the potential impact on smaller publications.

In a written reply, Minister of State for Information & Broadcasting L. Murugan said the hike is based on the unanimous recommendations of the 9th Rate Structure Committee (RSC), constituted in November 2021 to examine cost structures within the print industry and update the Directorate of Advertising and Visual Publicity (DAVP) rate card.

Murugan said the government had accepted the panel’s recommendations in full, including revisions to colour-advertising premiums and preferential positioning charges, areas he described as “key revenue contributors” for print publishers.

According to the Ministry, the RSC consulted a wide spectrum of industry representatives, including the Indian Newspaper Society (INS), the All India Small Newspapers Association (AISNA), and publishers from small, medium and large organisations. The committee reviewed cost elements such as newsprint price inflation, imported paper rates, wages, and production overheads.

Officials noted that the revised structure reflects “rising input costs and increasing competition from digital platforms,” adding that print outlets continue to face pressure as advertising and readership patterns shift online.

While the government justified the upward revision, it did not provide a direct estimate of how the 26% hike would affect the collective advertising budgets of various Ministries, a key concern raised by MPs. The response also stopped short of clarifying whether smaller regional publications may feel disproportionately burdened or whether the revised structure might advantage larger media houses.

Murugan stated that the increased rates would help “strengthen local news ecosystems” and sustain print operations that have been dealing with rising costs. He added that the revision is expected to aid “improved content creation,” particularly for outlets operating with thin margins.

MPs also questioned whether the government would publish the full RSC report, including any dissenting opinions. The Ministry did not commit to releasing the document publicly. It also did not address concerns about whether higher government advertising budgets could influence editorial independence at a time when many publications are financially strained.

Despite the shift toward digital consumption, Murugan emphasised that print continues to play an important role in disseminating official information, particularly in regional markets with strong newspaper penetration. The updated rate card, he said, is intended to ensure the sustainability of the print ecosystem while enabling Ministries to reach diverse audiences more effectively.

The move comes amid renewed debate on the financial viability of legacy media and the evolving role of state-funded advertising, a lifeline for many print publications navigating economic and technological disruption.