The rising timber prices are continuously hitting manufacturers of plywood. The steep timber escalation in various timber mandis is heavily impacting the input cost of plywood manufacturing. Industries from different clusters are loudly voicing about timber scarcity leading to continuous price rise during last several months. In every wood-based industry cluster, such as Punjab, Haryana, UP, Delhi, Kerala, and even in AP and Gujarat, the scenario is panning out to a bleak phase of next two years. Looking at the trends so far, the buying vs selling equilibrium point to a loss-making stage which is unbearable for the manufacturing fraternity. Almost every association of plywood manufacturers in the country has deep concern for their respective states and regions. They have been recommending price increase advisory in the finished goods price by 5 to 8%.
They reasoned that for the last few months, the timber prices have increased by 15 to 20%, and to cope up with the rise in the input cost and to allow the establishments to remain functional, price rise on finished goods looks imminent. Similarly, the shuttering plywood manufacturers based at Yamuna Nagar has recommended to increase the price of shuttering plywood by Rs 3 per square foot.
The most difficult phase is on for plywood sector in North India is facing constraints due to the less arrival of timber in mandis. According to the reports, a large number of plywood manufacturing units are under pressure as the timber mandis of UP, Haryana, and Punjab are witnessing less timber arrivals that are decreasing day by day, due to which the timber price is increasing and that is also pushing up the input cost of plywood.
The timber traders at mandis says that the timber shortage has increased to 40%, due to which the price of timber have increased significantly. They said that the timber arrival has dropped by 40%. A North India based timber trader said that in normal days, nearly 200 trucks used to come into Mandauli Lake Mandi every day, which is now only around 125. The situation is similar in every state.
Mr Gopal Krishan Agarwal, President, Rajasthan Plywood Manufacturers Association issued a letter to their members on 2nd March, 2023 and said, after a discussion with association members about the day-to-day increase in the cost of plywood materials (especially timber and core) and over head, the association concluded on the above to increase the price of finished goods. Plywood price has been increased by 5%, while flush doors and block board price have increased by 3% with immediate effect.