Federation of Indian Plywood and Panel Industry (FIPPI) has requested to the ministry of chemical & fertilizers for immediate intervention to ensure due process of law is followed and decisions are not taken haste while applying Compulsory BIS Registration Scheme in respect of Melamine BIS 15623:2005 and Phenol BIS 538:2000. The representation was made by Shri Sajjan Bhajanka President of FIPPI - an apex body representing several manufacturers spread across the country and engaged in manufacturing of Plywood, Doors, MDF Board, Particle Board and Decorative Laminates, etc. They also took into notice to SIPMA (The South Indian Plywood Manufacturers' Association), ILMA (Indian Laminate Manufacturers Association), AIPMA (All India Plywood Manufacturers Association) and WTA (Wood Technologist Association) to intervene in the matter and give direction to the department / administrative ministry.
Due to the fear that these products may come under Compulsory 1315 Registration Scheme any moment, imports have reduced drastically, and the demand supply gap has widened, and the Indian Manufacturers of these products have started exploiting this situation fully, which is hurting the Plywood and Panel Industry, very badly.
As the issue is very important for the growth and survival of the Plywood & Panel Industry, FIPPI requests all the concerned association to make a representation on their letter head on similar line and send to the concerned officials and prevent rumor / exploitation resulting into benefit to a handful companies, at the cost of several others. According to FIPPI laminate industry with 400 manufacturers giving direct employment at plant to more than 50, 000 workers. The ratio in MDF / PB with 30 manufacturing units and over 5000 direct employment at plant. The plywood and doors industry, having 3300 manufacturing establishments employing 1, 00, 000 workers.
FIPPI wrote to Ministry of Chemicals & Fertilizers that most of these manufacturers fall in MSME Category. The industry provides large scale direct employment in the rural areas of the country and the products manufactured by the industry provides employment to Millions of Carpenters / Contractors / Dealers / Distributors / Transporters, Handling & Logistics Service Providers. The input material used by the industry is grown by Farmers under Agro - Forestry and Farm Forestry Schemes and helps in improving the income of Farmers, besides helping in increasing the forest cover. It is therefore submitted that the industry need to be helped in achieving inclusive growth which is the top priority of present Government.
The industry uses large quantities of Melamine and Phenol for manufacturing their various products. Presently in India Melamine manufactured by only one company and Phenol is manufactured by just two companies, one of which being a large consumer itself, sells very little quantity to others. There is huge demand and supply gap for these products, which is bridged by imports.
The import of both these items were subjected to Anti - Dumping Duty, which has now lapsed due to either the period getting expired, or due to intervention of Hon'ble Courts. It is reported that after the end of protection available to Indian Manufacturers by way of Anti - Dumping Duty, the Indian Manufacturers of these products have taken up the matter with Ministry of Chemicals & Petrochemicals for applying compulsory BIS Registration Scheme to both these products.
Due to the fear that these products may come under Compulsory 1315 Registration Scheme any moment, imports have reduced drastically, and the demand supply gap has widened, and the Indian Manufacturers of these products have started exploiting this situation fully, which is hurting the Plywood and Panel Industry, very badly.
The Law / Schemes relating to application of compulsory registration in BIS clearly provide that such scheme can be allowed only when it becomes necessary or expedient to do so in the public interest or for the protection of human, animal or plant health, safety of the environment, or prevention of unfair trade practices, or national security.
In view of all the above, it is respectfully submitted and placed on records that:
a) None of the conditions stipulated in the Law/ Scheme have arisen in respect of both the above mentioned products.
b) We understand that nowhere else in the world, compulsory BIS Registration Scheme applies to both these products.
c) Department seems to be in hurry in applying compulsory Registration Scheme to both these products without following the due course of Law.
d) In spite of the Department and Indian Manufacturers of these products, both knowing that our industry consumes huge quantity of both these products and that there is a huge demand supply gap which is bridged through imports, we have neither been called for nor been informed in any manner, about the stakeholders meeting.
e) No information or breathing time given to the importers and to the industry, for taking steps in meeting such stringent regulatory compliance, despite full knowledge of the huge demand supply gap, which can only be bridged through imports.
In view of this decision of the Department, the handful number of Indian Manufacturers of these two products has started exploiting the situation very badly, affecting capacity utilization of the user industry. It is also submitted that our industry has made huge capital investment in recent past. Most of the players in the industry are in MSME Category and have huge fixed cost of operation. Therefore, such exploitation needs to be stopped immediately, to prevent possible collapse of the industry.