Govt defends 26% hike in print ad rates, citing rising input costs

The government on Wednesday said its recent approval of a 26 per cent increase in print advertisement rates is based on a detailed assessment conducted by the 9th Rate Structure Committee (RSC).

Responding to a supplementary question in the Lok Sabha, Minister of State for Information & Broadcasting and Parliamentary Affairs Dr L Murugan said the government constituted the 9th Rate Structure Committee (RSC) on 11 November 2021 to examine and recommend revisions in advertisement rates for print media.

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“The Committee consulted a wide range of stakeholders, including the Indian Newspaper Society (INS), All India Small Newspapers Association (AISNA), Small-Medium-Big Newspapers Society (SMBNS) and other representatives of large, medium and small publications,” he said in a written reply.

The clarification came in response to a set of questions raised in the Lok Sabha on whether the hike was justified at a time when several ministries are reportedly facing budgetary pressure.

The Committee assessed multiple cost parameters influencing print media operations, such as newsprint cost escalation, inflationary trends, processing and production expenses, employee wage liabilities, imported paper prices, and other relevant inputs.

Based on these assessments, it submitted unanimous recommendations, which were accepted by the government.

The government has agreed to the recommendations of the committee, including those relating to premium rates to be offered for colour advertisements and preferential positioning.

The revision of advertisement rates is commensurate with rising input costs and increasing competition for the print media from digital platforms. Enhanced revenue flows will help sustain operations and strengthen local news ecosystems. Improved financial stability will also enable print media organisations to invest in better content creation, thereby serving public interest more effectively, the minister said.

By recognising the continued relevance of print media within a diversified media landscape, the government aims to ensure more effective dissemination of its communication and information to citizens.