Timber Traders' Stricter Terms Create Stir Among Plywood Manufacturers, Payment Terms to Get Tightened More

person access_time   5 Min Read 24 May 2019

Aagadhari Plywood manufacturing hub in Yamunanagar district has jolted after a guideline issued by Jagadhari Timber Adhati Association. There is a set of terms mentioned on plain paper without any authoritative signature though relating to timber merchant groups was circulated in district Yamunanagar that mentioned, strict payment terms of payments. The terms mentioned that:

1. The payments should be made in same day with 3 % surcharge

2. Last one month payments credit should be clear within a week,

3. Trolleys would deliver to those units only to whom the Challan was issued,

4. If they find any error in weigh machines, they will charge penalty to such units,

5. They need blank cheques for rented units etc.

In this letter they also mentioned that, Manufacturers, who are not ready to accept these terms, they shall not enter into Timber Mandee premises for purchase. There are murmurs from plywood manufacturing clusters of Yamunanagar and Jagadhari that 'Aadhatee's come in group into factories, keep pressure for immediate release of payments and threaten to stop supplying timber to them ahead. Though the validity of such reports are limited to very few people till writing this news, there is certainly more pressure is built than ever.

According to estimates Jagadhri plywood mills consume huge loads and thousands of trolleys of timber every day. Till 2018, things have been smooth but after the GST and market slowdown, factories are facing closure and suspensions. Partnerships are breaking away, firms are shutting downs with heavy debts since the timber prices have begun growing up and market payments are very very slow. With falling rate of arrival of timber trolley's.

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