Increasing prices of raw material hits Yamunanagar plywood industry

*Out of 1020 manufacturing units 351 already closed

Yamunanagar : According to the manufacturers of Yamunanagar plywood industry which started booming since after 1980, having total number of 1020 licensed manufacturing units in the town including 872 pressing units, 713 saw mills, 734 peeling units and 102 chipper units were known all over in the country in manufacturing plywood and providing employment to nearly two lakh persons. But as a result of rising prices of basic raw material ‘popular’ wood used in plywood industry, presently available at the rate Rs 1700 per quintal, which was earlier available at the price between Rs 500 to 600 per quintal, the production cost of plywood have been much increased now and it has become difficult for Yamunanagar plywood manufacturers to compete plywood being manufactured in Kerala or plywood being imported from Vietnam which is available at the cheaper prices as compared to the locally manufactured plywood.

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Information also reveals that out of the total number of 1020 manufacturing licenses issued by the Haryana state government in Yamunanagar, 351 plywood manufacturers have become completely sick and have not applied for the renewal of their manufacturing license at present. While having a  talk with a plywood manufacturer in Yamunanagar, they told that huge stocks of plywood manufactured by them are lying demped in their godown in the absence of buyers. They said earlier 300 to 350 truck loads carrying plywood were being dispatched to the buyers in different places across the country from Yamunanagr every day, but now the manufacturers have no orders, besides huge stocks of ‘popular’ wood are also lying unsold in Mandoli wood market in the area due to poor demand and increased prices of the basic raw material ‘poplar’ wood. Few manufacturers said that they are planning either to shift their manufacturing units to other states or change their business for their survival.
According to Yamunanagar plywood manufacturers, during year 2002-03 when Yamunanagr plywood industry was booming, the new licenses for manufacturing plywood in the area were discontinued by the state government enabling to stop cutting of trees thus shrinking green area, when matter was taken to the Supreme Court of India by the manufacturers who convinced court that the production of ‘popular’ trees fall under the agriculture sector, when the court lifted the ban over issuing new licenses to manufacture plywood in 2015.

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Information revealed that the plywood industry of Yamunanagar was having daily demand of 2.25 lakh quintal popular wood being procured within the state as well as from adjoining states Uttar Pradesh, Uttaranchal and Punjab. Yamunanagar plywood manufacturers said that their maximum share of  sales has been snatched  by the plywood manufacturers in Kerala and plywood imported from Vietnam which is available at cheaper rates as compared to the plywood manufactured in Yamunanagar due to lesser production cost. They said, the farmers dependent on ‘poplar’ wood crop in 21000 acres area in Yamunanagar district, 1500 acre area in Kurukshetra district, 2000 acre in Karnal district and 6000 acre in Ambala district are also worst affected.

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