Due to slower demand of plywood, the timber consumption has dropped in North India, which is helping in marginal improvement of supply but the high moisture content in timber has strengthened the prices of timber cost by almost 10 to 15%. Manufacturers say that the timber supply has improved, and the rates are also in comfort zone but the weight of timber has gone up, hence their final costs have increased. It is noted that Poplar prices are hovering around Rs.800 to 1000 per quintal, while Safeda prices are rolling at approx Rs.600 to 700 per quintal in northern India.
A manufacturer from Yamunanagar says it is a regular phenomenon in winter season every year; because the weight of timber increases with high moisture content, we are forced to pay extra in terms of weight by 10 to 15%. A Ply-board manufacturer from Punjab says that earlier these rising costs didn’t matter much because they had been earning good margins but the situation has now become tough since they are working on very low margins. So, if the prices of raw materials are strenghened, their input cost also go high, and they are uncomfortable to absorb such price hike.
It is noted that costs of drying Core Veneer and Wood Battens also generally go up in winters, compelling more energy consumption and cost. A manufacturer from Yamunanagar says that their Block Boards and Flush Door manufacturing capacity reduces by 30% during winter season, the high moisture Content in Timber results in more seasoning time. It must be noted that the demand for Boards and Flush Doors are high during winter season every year.