-SATISH HANDA

Collapsing agro-based plywood industry in Haryana and Punjab states need special packages, subsidies in new budget to be declared by Union Finance Minister on February 1, 2020. Yamunanagar was known as hub for manufacturing plywood in the country in past years, now facing severe financial crunch. Out of nearly 1250 units involved in manufacturing plywood and its related products including wooden saw mills in the town, most of them have either been shifted to other adjoining states U.P, Punjab and Uttaranchal or turned completely sick. According to Devinder Chawla National President Plywood Manufacturers Association, in case Haryana state or government in the centre failed to take immediate action to provide oxygen and save this industry, reduce GST to 5% from 18% at present in new budget the town would lose its identification.

Chawla disclosed that plywood industry in the town was procuring nearly 80% basic raw material, nearly 2.5 lakh quintal popular-safeda everyday in past years and have reduced nearly 40%, more over labour from other states Punjab, U.P and Bihar have started shifting to other places in their home states with the opening of large number of plywood manufacturing units in other states and the stocks of raw material are now being consumed locally in these states. He said, most of the labourers working in Yamunanagar industry has also shifted back to their home towns in these states, as such cost of raw material earlier being procured from Punjab, U.P, Uttrakhand and other states have gone much higher from Rs 400 to Rs 900 each ton at present besides higher labour cost. Chawla demanded immediate attractive packages by the government to save collapsing plywood industry in the town almost on the verge of closure as nearly 50% units have already turned sick or closed down their shutters due to higher production cost, costly raw material, higher GST and hike in labour cost.

There are nearly 200 plywood manufacturing units at Ludhiana in Punjab doing business worth Rs 300 crore annually most of them facing recession.. The manufacturers said that they are facing challenge from plywood imported from Mylesia, China and Vietnam due to their lesser prices and demand government to withdraw custom duty on import of raw material from Indonesia and Africa, also impose safe guard duty on import of finished goods which would bring relief to indigenous manufacturers. The president of Punjab Plywood Manufacturers Association Inderjit Singh said, being agro-based state, plywood industry was set up in the state but as a result of shortage of eucalyptus plants, the manufactures are procuring wood from Haryana and U.P states thus causing increase in production cost.

According to Chairman of Plywood Manufacturers Association Ashok Juneja, being agro-based industry government should provide special incentive to this industry in coming budget like supply of electricity at cheaper rates, loans from banks at subsidised rates of interest, decrease in GST slab applicable 5% from 18% charged at present, freight subsidy since Punjab is situated away from ports and above all impose safe guard duty on plywood being imported in the county adversely affecting sale of local manufacturers, which include nearly 20% of total demand in the country. Juneja said, nearly 75% plywood manufactured at Ludhiana supplying goods to other states including Maharashtra,  Gujarat, Rajasthan and Delhi in the country spending huge amount on freights thus enhancing production cost. He said, as a result of slump in industry, most of the farmers in Punjab state has switched over to cultivate other fruits instead of eucalyptus. Moreover, labour in Punjab is costl, Juneja said that government should encourage this agro-based industry as a symbol to folliow ‘Make-in-India’ slogan by our Prime Minister Narender Modi injecting strength in the arms of this dooming industry in budget.