The plywood industry & trade was desperately waiting for GST reduction from 28 to 18 on the occasion of 21st GST council meeting that took place in Hyderabad on 9th September. But no mention of any such outcome dashed all hopes for cheaper availability of wood panel products.
According to trade experts, "The GST revenue collection (in aggregate of all country) was far lesser than anticipated for the section for wood & wood products". Although AIPMA counts the reasons like flood in almost 60 percent of the country that led to very poor dispatch of plywood, Doors and even hitting sales of MDF and PB as well. In general the market is already slow hence weak collections were anticipated.
A section of wood panel industry also blames it to continued unorganized working of many players that does not help the number to reach bigger.
Now it is clear that rates are not going to lower in any time soon, those who have postponed up their buying or stocking decision would ask for quick dispatches from factories.
The Ply Reporter anticipates that between 10 to 30th September, there will be a big time material lifting at factories as the godowns are dry and loosing business.
The implementation of E way bill is starting from 1st October hence the trade will certainly begin to build up its inventory and streamline their businesses.
It is hoped that different industries and wood panel associations will continue to make sincere efforts to bring down GST slab by creating a push for an organized work culture and help the customers by bringing down prices once GST slab is reduced.