Haryana Forest Department has granted new licences for plywood, veneer, block board and door making units and released 1680 new licences last month. Issuing of new licences for plywood industries has opened the blocked path to start new plywood units in the region after one and half decade. The Forest department has issued the list of successful applicants and selected new licensees have to deposit their licence fee for formal issuance of final licence.
In a survey done by the government in September 2016, it was observed that wood supply was 10 percent higher than the last year. The Haryana Poplar Safeda Growers Sangharsh Samiti had been struggling since long to convince the government for taking measures to prevent the falling prices of plantation wood. The prices of poplar have come down by 200 percent during last two years thus forcing farmers to uproot poplar plants and stop plantation.
It is reported that a total of 1157 plywood, board, peeling factories and saw mills are functional in Yamuna Nagar district at present. Forest department has approved 814 applications in Yamunanagar District. After issuing new licenses, the plywood manufacturing activity in the state is expected to grow by double and relatively the demand of Poplar and Eucalyptus timber will also grow.
PRESENT SCENARIO IN NORTH INDIA
Approx 200 new plywood presses are going to install in Northern India, which orders are confirmed by plywood machinery manufacturers. Among these 120 presses are commissioning only in Yamuna Nagar district alone. These plywood units will commence their production by beginning of next year. After issuing new licenses in Haryana approx. 100 new plywood presses may start in the next two months. Machinery sources confirm that they have lots of queries for new presses in Haryana and negotiations are on.
Punjab is another emerging state for new plywood establishments and report confirms that approx. 40 new presses are going to set up in different districts of Punjab, where as Hoshiarpur belt is emerging as a hub for plywood manufacturing in state. Century Ply group has recently started its commercial production of MDF in this area and going to set modern plywood manufacturing also in next phase with huge investment, which production will say to commence by next year only.
Film faced Shuttering plywood is the hottest product for north India plywood producer now a days. Industry feels comfortable in producing and selling of Film faced plywood than commercial grade resulting there are confirmed orders of 40 new high-density presses for film faced production.
Uttar Pradesh is next big hub for plywood manufacturing in north India, although they have constraint of new license for wood based units. But sources say that state government is considering issuing new licenses in the line of Haryana Government. Contrary, UP is also adding the plywood capacity on the basis of old licenses they have. More than 35 new plywood presses are going to set up in different district of UP. Lead brand Greenply is going to set up state of art manufacturing facility in UP, which huge production capacity that will commence commercial production by next year. Apart from this, half a dozen of mid level plywood producers in UP, are also expanding its production capacity by adding new presses, new technology and machines.
Film faced Shuttering plywood is the hottest product for north India plywood producer now a days. Industry feels comfortable in producing and selling of Film faced plywood than commercial grade resulting there are confirmed orders of 40 new high-density presses for film faced production. Among them half a dozen of mutli daylights presses of more than 20 daylights are going to install to take huge production output. Yamuna Nagar is reported to lead in new film faced plywood orders followed UP, where 10 new orders of high density plywood presses.
NORTH INDIA TIMBER STATUS
The restrictions imposed on the plywood industry in 2006-07 by the Supreme Court considering that forest wood was being used for manufacture of plywood and other related material curbed the new units or expansions. With time plantation timber supply grew many folds but industry capacity remained same that has led to fall in prices of wood which is down to Rs 300 from Rs 1,200 per quintal in the last three years, forcing farmers to uproot poplar plants and stop plantation. The Haryana Poplar Safeda Growers Sangharsh Samiti had been struggling for long to put pressure on the government for controlling prices and allowing new wood based industries as there is surplus timber available in the state. The survey of wood availability in Yamuna Nagar district was going on by the department but it largely indicated surplus timber availability. After that detail of Poplar availability was sent to the state-level committee for decision on the number of new licenses is issued.
Our survey reports found that year 2011-12 planting season was recorded as the best for poplar plantation in Northern states. Approximately 4 to 5 crore samplings were reported to be distributed during sowing season of 2011-12 and plantation was done on around 2.5 lacs acres land. After that year on year the plantation area reduced. In 2012-13 planting season the plantation area fell by 15 % of the previous year, and in 2013-14 the plantation area again dropped by of 20 percent reaching to 170,000 acre land.
During the year 2014 the prices of Poplar timber witnessed huge drop of 50 percent after wide use of spindle less peeling machines that helped the industry to gain maximum yield from even a ‘16 inch dia’ log. The timber market fluctuation and drop in prices forced plantation growers and farmers to reduce the Poplar plantation area further.
group of timber growers from Haryana, Punjab and Uttar Pradesh advocated to issue more licenses for setting up ply-boards mills, which they felt would be able to help the demand supply situations and ultimately supporting the farmers. Compared to 2013-14 the sawing season of 2014-15 reported the biggest fall and plantation land coverage dropped by 70 percent of the previous year mark. The planting season of 2014-15 and 2015-16 were the worst hit as Plantation area plummeted drastically.
This year planting season is said to be very crucial indicator of future for Indian plywood sector because as per reports the poplar plantation was done just in approx. 14000 acres land area till January. According to nurseries the plantation area does not seems to be crossing even 20000 acres land. It is noted that around 200 to 250 plants are planted per acre land.
Uttar Pradesh is the main Poplar growing state with around 50% of total Poplar saplings planted followed by Punjab, Uttarakhandand Haryana. Current planting season is reportedly weak as the grower sentiments are not motivating them because of low price of their yields.
Planting poplar on the fields is decided by individual farmers from the available options of crops/trees those could provide remunerative returns to them. The present sentiments on planting poplars are not good as its market prices are low and they are hesitant to take risk. Sugarcane and Poplar are the crucial crops that decide the plantation growers to choose from and lucrative option to win.
Hence from 250000 acres of land during 2011-12 to estimated 20,000 acre land of Poplar plantation clearly stating the emerging timber and raw material availability scenario by 2019-20. The Poplar prices will hit the roof again and the North Industry may look to uncertainty if something urgent is not done.