After a meeting with Mr. Prakash Javadekar, the Union Minister of Environment Forests & Climate Change (MoEFCC), Mr Manohar Lal Khattar, Chief Minister of Haryana assured that within a month, 15 previously established formaldehyde units in Yamunanagar would get environmental clearance. He said that when these units were started, there was no need for environmental clearance, but now it is necessary. Due to compulsion under low everyone has applied for environmental clearance, and by completing the process quickly, within a month they will be given clearance and allowed to run.
It is worth noting that in the order given by the NGT dated June 3, 2021, the units not having Environment Clearance (EC) were close down. It has been said in the order that those units established after 2006 having no environment clearance should be closed down. In its order dated November 28, 2019, the NGT had allowed several units to run without EC for six months on the condition that they would have to apply for it within two months. The court says that since environment clearance is a statutory requirement, it must be followed.
Following the NGT order, there was an agony among the plywood producers of North India, as within two days of the order there was a high price rise (by 30%) in formaldehyde. According to the information received from the industry, the rates increased from Rs 19 to Rs 25 in two days. The cost of formaldehyde immediately had a profound effect on film face plywood producers, and their production costs have increased. According to the report, the producers of the film Face Ply have refused to accept fresh orders with immediate effect.
Mr. Devendra Chawla, President, All India Plywood Manufacturers Association (AIPMA) said that formaldehyde is the basic raw material for plywood manufacturing. Due to this order the price increased by Rs.6 in a few days. We will focus on three things to cooperate with its producers, firstly seek some time from NGT to meet all the requirements for environment compliance. Secondly, we want to solve this problem amicably cooperating with formaldehyde manufacturers so they should cooperate with us in terms of price and don't do black marketing. And thirdly, we will consider raising the price of the product if it affects our production. The order will affect most of the units across the country, except a few in Haryana.
Mr. Naresh Tiwari, Chairman, AIPMA informed that the film face ply and laminate industry will be greatly affected by this order, as it is the raw material required for them. We have to work on two measures now, first appeal to the government to solve the problems, and secondly, increase the prices of the products. According to an estimate, the price of film face plywood will increase by about 10 percent. Laminate, particle board and MDF will also be affected similarly, so there is no option but to increase the price of the product.
Mr J K Bihani, President, Haryana Plywood Manufacturers Association (HPMA) said that this will have a direct impact on factory operation and formaldehyde prices. The previous order of the state government has now become inactive. A few days ago formaldehyde was Rs 19 which has reached Rs 25. If the availability of chemicals is less then, the production of plywood will also be affected and its price will also increase. Mr. Bimal Chopra, MD, Metro Plywood Group said that the impact of the order was immediately visible on the price of formaldehyde which was Rs 19 which went up to Rs 25 in just two days. Due to non-availability of chemicals in the industry all over the country due to formaldehyde, difficulties are being created in the work