Nepal based Plywood Industry is also witnessing timber rate issues for Plywood manufacturing now. The ground report reveals that Core Veneer prices have gone up by 40 during last 1 year. Nepal based Plywood producers are certainly witnessing a level playing fight with emerging possibilities from cheaper plywood in India now. There has been a 12-14 % jump in the prices of finished goods prices in last 3 months, which of calculated in span of 2 years; it comes to approx 30% of price jump on current prevailing rates. The Nepal industry believes that prices will go up further.
Nepal Plywood producers said that due to the high prices of raw materials being supplied from the hilly districts of Koshi Province, the production of plywood has decreased and they have been unable to supply according to the demand. It is noted that Nepal has been exporting big quantity of Plywood to the India market since the last 2-3 years, catering to the demand of economical plywood in the surrounding states of India near Nepal border. The high prices of Nepalese Plywood would affect the customers in the India market as well.
As per report, the Nepalese Plywood prices have increased in India up to Rs4 to Rs 5 per sq ft. Traders say that the further increase in Prices may affect the demand of Nepalese Plywood in the India market, and they may shift to economical grade Plywood available in India.