Punjab wood panel and plywood industry has expanded its manufacturing capacity by more than 40 percent by adding new production lines and expansion. The new manufacturing capacity expansions are noted in Hoshiarpur, Ludhiana and Samana Area, where new lines for making MDF and Plywood are being set up, but it is the plantation area that has not gathered the speed in tandem with panel industry manufacturing growth in the state. The present scenario is clearly indicating towards a looming timber shortage in the state once all the manufacturing plants will resume normalcy.
Mr. Inderjeet Singh Sohal, President, Punjab Plywood Manufacturers Association said to The Ply Reporter that due to Covid pandemic, the production capacity utilization has dropped to the level of 60 %, which has somehow helped to maintain timber prices during last 6 months, but the situation will be certainly heading towards shortage in imminent future.
Mr. Sohal indicated that the increase arrival of labour in state, is helping the plywood industry to increase the capacity utilization but it must be supported with plantation timber availability too. Pointing the gap of lesser plantation during 2016 to 2019, the scenario of timber shortage willbe visible soon. According to Mr. Sohal, “The Poplar timber prices are hovering around 750 plus, whereas Eucalyptus prices are hovering around700 mark in present time. The moment, there is a surge in demand, the prices will be up by another 100 mark.
It is also reported that the plantation area has increased in this plantation year because farmers are getting good prices of their products now, but it is come after 3 years. Industry says that year 2012-22 will be a difficult year for Punjab wood based industries on timber availability front. It is noted that Punjab has more than 200 plywood manufacturing establishments and one MDF manufacturing units. The timber consumption has increased by 40 percent in Punjab since last 2 years because arrival of new manufacturing units in differentlocations in state.