The meetings and voices for plywood price increase is being heard from last 3 to 4 months where plywood manufacturers are holding up group meetings to evaluate the brewing trouble in the industry. Despite of many meetings, everyone was not coming on board to increase the prices in one call. With the rise in difficulties on viability due to increasing timber prices, Now every state gathering has announced to ask for increased prices for plywood products.
Number of industry associations related to plywood industry in North India such as in Punjab, Delhi, Rajasthan etc along with manufacturers association from Kerala have come forward and discussed the issue on price. In support to the industry needs associations too have advised the manufacturers to stay cautious and operate on sustainable prices.
Following various meetings and discussion in different clusters, the plywood manufacturers have decided to increase the prices of plywood with immediate effect. The price increase is effective up to 10 % in different regions and states. Plywood industry from North India to South India is badly affected with capital crunch, payment stuck with the parties and increasing raw materials cost.
The industry and trade people blame non - availability of liquidity in the market for delay in payment. Secondly, the timber prices are continuously increasing since last three months. This challenging scenario has compelled plywood producers across the country to increase the prices of finished wood products such as plywood, Flush door, Block board, Doors, etc. On different occasions at various state, plywood manufacturers association held their state meetings regarding various ongoing issues to safeguard the interest of plywood industry, plantation growers and trade.
The PPMA (Punjab Plywood Manufacturers Association) called a meeting of their office bearers on July 13, 2019 to discuss the plywood industry rising troubles. Later it was decided that Plywood prices shall be increased by 10% to counter increase in raw material prices. According to Chairman Mr Ashok Kumar Juneja & President Inderjit Singh Sohal, “The cost of raw materials & other inputs for manufacturing plywood, board, flush doors has increased a lot due to which the entire industry in Punjab decided to increase price by 10% to all finished goods with immediate effect to save the industry from heavy losses.”
During the meeting Mr. Naresh Tiwari, Chairman North India Manufacturers Association & Sukhdev Chhabra, Secretary General (PPMA) called upon the payment issues and said, “If
any dealer will not pay the dues or make unnecessary delay in payment against supplies, then Plywood Manufacturers will stop supply the material to them & his name will be blacklisted.” In the meeting all the major plywood manufacturers of Punjab participated and expressed their views. The office bearers of the association also submitted a memorandum to Captain Amrinder Singh, CM, Punjab stating that the previous government had declared the plywood industry in Punjab as Agro based industry but no extra benefit has been given. They demanded the concessional electricity and bank interest rates as incentive of having agro based industry status.
On other side Mr MM Mujib Rahman, President, AKPBMA (All Kerala Plywood & Block Board Manufacturers Association) releasing a letter dated July 11, 2019 to their members appealed to increase the price by 10% for all plywood, block board and flush doors with immediate effect stating that “Due to heavy hike in raw material cost & labour charges, we find it difficult to running our factory now-a-days,” he reasoned in the letter. Mr Gopal Krishna Agarwal, President of Rajasthan Plywood Manufacturers Association announced the price rise by 5% on ready products due to 15% growth in price of various timber like Poplar, Safeda, Aadu and its core.
In Delhi state Delhi-NCR Plywood Manufacturers Association called a meeting on July 20, 2019 and the executive committee discussed the issue and said, “In view of the steep rise in the prices of the raw materials of the industry since last few month and lack of cash flow in the market thereby affecting the working capital of the industry, survival of the industry is almost difficult.” They added in their official letter that so for the survival of the industry as a whole it’s essential to increase the prices of finished products. Therefore with the mutual consent of all the respected members of the association it has been decided that the prices of all the plywood products will be increased by 8% with immediate effect. Also payment terms not would be more than 30 days.”