Yamunanagar plywood industry struggles hard for survival

Shiv Kumar Sharma

Tribune News Service

Yamunanagar, September 19

Despite increased rates of plywood, board and flush doors, the plywood industry of Yamunanagar district is struggling hard for its survival.

Lack of funds, orders from clients and increased rates of raw materials including timber, formaldehyde, preservative dipping chemical, phenol and shuttering base papers’ cost are believed to be the main reasons behind the struggle of this industry.

Increased rates due to short supply

• The rates of poplar wood, which is used for manufacturing all types of plywood and board, have witnessed an increase of 25 per cent due to its short supply.
• The rates of oversized poplar wood were Rs 800 per quintal in February 2020, but after the first and the second waves of Covid, the rates have now reached to Rs 1,000 per quintal of this size wood.

According to information, the rates of poplar wood, which is used to manufacture all types of plywood and board, have witnessed an increase of 25 per cent due to its short supply. Sources said the rates of oversize poplar wood were Rs 800 per quintal in February 2020, but after the first and the second waves of Covid, the rates have now reached to Rs 1,000 per quintal of this size wood. Anil Garg, director, Ambalika Plywood Private Limited said there were two major reasons behind the short supply of poplar wood and an increase in its rates. “The plywood industry of Yamunanagar district receives about 80 per cent supply of poplar wood from Uttar Pradesh. But now, a lot of plywood factories have come up in Uttar Pradesh itself and the farmers of Uttar Pradesh prefer to supply their poplar wood to factories, situated in their surrounding areas. Second, we have to spend more transport expenses (Rs 150 per quintal extra) than the factories of Uttar Pradesh to get supply of poplar wood,” said Anil Garg.

Facing huge crunch of funds

They are getting orders, but most of the orders are on credit, while the orders of cash are very less. Therefore, this industry is facing a huge crunch of funds. —JK Bihani, president, haryana plywood manufacturers’ association

UP farmers not selling wood to US

The plywood industry of Yamunanagar district receives about 80 per cent supply of poplar wood from Uttar Pradesh. But now a lot of plywood factories have come up in UP itself and the farmers there prefer to supply their poplar wood to factories situated in their surrounding. areas. —Anil Garg, director, Ambalika plywood private limited

According to information, before the lockdown was imposed in March 2020; about 2 lakh quintals of poplar wood (including some quantity of eucalyptus wood) was being supplied daily here, but now the supply had come down to less than 1 lakh quintals.

“They are getting orders, but, most of the orders are on credit, while the orders of cash are very less ,” said JK Bihani, president, Haryana Plywood Manufacturers’ Association. He said they held a meeting of the association on July 24, 2021 and decided to raise the rates of plywood, board and flush doors by 7 per cent and rates of film faced plywood by Rs 2 per sq feet with immediate effect for the survival of the industry, but that too did not help.

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