Yamunanagar-based plywood manufacturers have been facilitated with railway containers to transport their ready products at a relatively 35% lower transportation cost than earlier. It is to be noted that the Indian Railway started BCNA wagons from Yamunanagar in the month of April. Now, from Yamunanagar to Guwahati, the material will reach in just four days, compared to 10 to 12 days for transportation by truck. The new facility will enable wood panel and decorative industry manufacturers and traders based at Yamunanagar to send their products to different parts of the country at a cheaper price.
The industry sources revealed that it will help the industry and trade based at Ymunanagar to have a level playing field to some extent as the high timber price in the region has made the industry activities unviable and the industry is taking a back seat in competition from the products manufactured in the southern and other parts of the country. They welcomed the stapes and said that a considerable reduction in transportation costs for the material to spread in different parts of the country is a great relief to the industry.
It is to be noted that the Yamunanagar-based wood panel industry and trade scenario is not so promising as margins have dropped drastically and the price of finished products has not increased with the rise in timber and raw material prices. The overheads have increased, but plywood manufacturers are not able to pass them on to customers. The expert opinion is that survival will only be possible with quality product manufacturing and selling them at their own price with margin. The savings in transportation costs are definitely a respite for the industry, but sustainability will only be there with a quality product offering.