Face Veneer is an important component for making plywood, which overlay on top surface of ply that gives mechanical strength to a plywood product. Since the beginning, India depends on imports for sourcing its face veneer requirement as they import logs from Burma, Malaysia and peel the face veneers. But once there is a ban on logs imported from Burma, the Indian Plywood Industry is solely dependent on import of these products from Gabon, Indonesia, Laos, China, etc.
The Plywood Industry view that they are majorly dependent on import for their Face Veneer requirement for plywood making, then the government should abolish import duty on face veneer to support domestic Industry which use plantation timber for making plywood, that support farmer income.
FIPPI has requested the Government of India to consider Zero Import duty on Face Veneer. In India the short rotation plantation timbers are unfit for producing good quality face veneer. As of date the country is totally dependent on imports. It is therefore requested to reduce the duty zero. Consider allowing duty free import for face veneer which determines the quality of the finished plywood products.
Okume Face Veneer import Gabon has the majority market share of India, which comes under 10% import duty plus 1% surcharge. Plywood Industry feels that the reduction to zero import duty will support Rs. 30000 crores plywood industry with 3300 manufacturing enterprises.