Improving availability of Bagasse in the current season has given a relief to Particle Boards producers. The raw material availability this year is looking optimistic that would help the particle board manufacturer able to utilise their capacity this year. Manufacturers say that the better sugarcane crop output indicates that they would get sufficient raw materials for this season although there is the biggest challenge to stock bagasse for a year. India has mainly two dozens of bagasse based Particle Boards manufacturing units located in Gujarat, Maharashtra and Uttar Pradesh. Two new units for Bagasse based PB are reported to start in Uttar Pradesh by next year.
Mr. Amrit Patel, Director, Levis Signature said, “The availability is good this year but the prices of bagasse have increased in Gujarat due to more demand from other industries. If you compare with Maharashtra and Uttar Pradesh, Gujarat's bagasse prices are much higher. Due to high prices of Coal, other industries have started buying bagasse in Gujarat for boiler use, and they are paying high prices. Hence, Gujarat based Bagasse Particle Board manufacturers may cut throat competition from other state producers”.
It is noted to be that Gujarat holds more than half of the market share of India’s bagasse based Particle Boards market followed by Maharashtra. These boards are very well accepted in the retail market due to its availability and easy to saw. Growing demand of readymade furniture in semi urban and rural market, Bagasse based Particle Boards demand has been growing year on year.