Plywood manufacturing associations based at Kerala, Karnataka, Punjab and Delhi-NCR issued a notice related to price increase and other business term post Covid 19.
Plywood manufacturers’ associations based at Delhi-NCR, Punjab, Kerala and Karnataka called up online meetings with their respective officials and members separately to discuss the scenario of industry post Covid 19. The associations’ members collectively sought for price increase of plywood, block boards and other wood based materials up to 10%. The decision has been implemented with immediate effect.
Delhi- NCR Plywood Manufacturers Association decided to increase the price by 10% after discussing the ongoing issues of materials, labour and liquidity in the market. They said that the plywood industry is labour intensive and in this tough time the owners have to manage their labour with their food, shelter, salary/wages without work, due to which the input cost has increased. In the letter issued by them, they also guided the members, how they can start their work under MHA guidelines after taking NOC from local authority.
The Karnataka Plywood Manufacturers’ Association informed that due to the mounting interest rate from bank and continuing even during lockdown, the industry will not be able to move on to more than 50% capacity, as there is also shortage of working capital, raw materials and labours. Hence, the overheads cost will shoot up. Factories are facing severe liquidity crunch. So the association has decided to increase the price of Plywood, Block boards, Flush doors etc by 7% with immediate effect. The dealers have also been directed to clear the old dues immediately and all transactions should be with 100% advance or immediate payment.
AKPBMA, Kerala and PPMA, Punjab also preached for price rise by 5% and 7% respectively and sales terms on 100% advance and cash after discussing the issues before the industry. They said that the dollar price rise has impacted the raw material cost like Face Veneer, Formaldehyde, Resin etc; the supply chain is not in order, price of timber is also increasing and there is no support to the industry from the government in such a time of crisis.