Government defends 26% hike in print ad rates citing rising input costs, need to support media sustainability

New Delhi: The Government on Wednesday defended its recent approval of a 26% increase in print-advertisement rates, stating that the revision is based on a detailed assessment conducted by the 9th Rate Structure Committee (RSC). 

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.

According to the Ministry of Information and Broadcasting (MIB), the Committee was constituted on November 11, 2021 with a mandate to examine and recommend revised advertisement rates for print media. 

Officials said the panel held extensive consultations with key stakeholders, including the Indian Newspaper Society, All India Small Newspapers Association, Small-Medium-Big Newspapers Society, and a range of small and large publications.

The Government stated that the Committee evaluated several cost factors impacting print operations. These included the steep rise in newsprint prices, broader inflationary trends, production and processing costs, wage liabilities, and the higher cost of imported paper. Based on these assessments, the Committee submitted unanimous recommendations, which were subsequently accepted.

Responding to concerns that the hike could favour large media houses at the expense of small and medium newspapers, the Ministry maintained that the revised rates, along with provisions for premium pricing for colour advertisements and preferential positioning, are aligned with the financial realities of the entire sector. It added that enhanced revenue flows would support local news ecosystems and help smaller publications remain viable.

On whether the Government conducted any financial impact analysis regarding the increased expenditure on publicity across Ministries, the reply reiterated that the rate revision is commensurate with market conditions and the evolving competitiveness between print and digital media. However, it did not provide specific details on projected spending implications.

The Ministry did not comment on whether increased advertisement spending could influence editorial independence. Instead, it emphasised that the revision aims to sustain print media operations and enable organisations to invest in improved content creation in the larger public interest.

The response also did not indicate whether the full report of the 9th Rate Structure Committee, including any dissent notes, would be made available in the public domain.

Overall, the Government said the rate hike reflects print media’s continuing relevance in a diversified information landscape and is intended to ensure more effective dissemination of official communication to citizens.