Reports from Kandla, Telangana, Uttar Pradesh, Uttarakhand, Haryana, Punjab, Kerala manufacturing clusters explains mass exodus of labour returning to their home towns due to lockdown fears during last week of April. Despite of half the workers had left the factories in these belts, manufacturing clusters reports indicate, a sharp decline in material dispatches and production after Covid 2.0 scare. Till writing this news, the production was going on with the help of the remaining labour force at factories that were hardly 40% of the usual strength. Although, many of the workers have gone to home towns but some have opted to stay this time due rapid spread of covid pandemic everywhere mainly Bihar, UP and West Bengal.
Although past few years trend point to departure of workers after March due to crop harvest and marriages seasons in northern India. Post Holi, the production in plywood mills drop by 15 to 20 percent in general but market demand remain same. This time, Covid 2.0 has impacted the demand as well as payments thus hitting hard the overall all operations of small and mid-sized plywood and laminate companies. With Some of the key states like Maharashtra, Delhi, MP, Rajasthan etc going under lockdown has hit the sentiments at gross level.
Reverse to the market scenario in last covid during 2020, the situation in rural areas, tier 2 and tier 3 cities are no different than metropolitan cities. Covid is seen spreading very very fast and causing deaths at alarming rate even in younger people. Somehow seeing the weak healthcare scenario in rural areas, many workers, their families, carpenters and contractors have remained in cities this time. Also with weak finances and earning pressure is keeping the working sites on thus demand is expected to remain until a complete forced lockdown is not announced. At present the demand and supply is at equilibrium position with low production at factory and demand in the market. The laborers are also willing to remain with work until the seriousness of spread rises.
Labour contractors say that mid segment plywood industry might suffer labor crisis for another 2-3 months this time because there is fear among every person due to increase death cases, which was not happening during covid 2020 wave. The situation is challenging for small and mid sized plywood units until the fear of deaths and healthcare infrastructure does not comes in control says market associations from wood panel trade.