After increasing price trend of Poplar timber in Northern India, it was expected that the market would shift to Kerala based plywood for its economical plywood requirements. Dealers from Maharashtra, Gujarat, MP, Chhatisgarh were started visit to Perumbvoor, Aluva in Kerala, and have exploring the cost calculation for shifting all Poplar ply to Kerala based Rubber wood plywood. As per report, Kerala based Plywood units had been receiving good amount of orders from these states on less credit period.
But the scenario seems to have turned post Covid because the Kerala based Plywood units were unable to utilize the capacity post Unlock period because of less manpower due to government strict majors of checking to exodus people, and it was mandatory of 14 days isolation for outside visitors. When the government has eased the travel norms, the Kerala based plywood manufacturers have started struggling due to raising prices of Rubber wood every month. As per report, the prices have been reached to beyond Rs.6000 per tonne since 7 months, and it is expected the further escalation due to short supply
M M Mujeeb Rahman, President of Sawmill Owners and Plywood Manufacturers Association (SOPMA) said, “Rubber wood prices are increasing day by day because the timber cutting is less. The average current price of rubber wood is above Rs 6500/tone and there has been an increase of more than Rs 1000/tone from the last 7 months. So, the production of plywood has been affected with price increase of core veneer in Kerala. Although the demand is there and plywood price has also increased by 5% but in comparison to the raw material price rise, this is very little and its further increase is difficult that is creating difficulties for manufacturers.