To safeguard the industry, the Indian wood panel and plywood industry members are collectively seeking a stimulus package. During a webinar organized by The Ply Reporter on 12April 2020, the industry pioneers demanded an immediate relief from government and urged the government to reduce GST on entire wood panel, plywood, laminates and furniture products to 12%. They also sought directions to the banks to support the industry in terms of CC limits, easy bank loans, lower interest rates, moratorium, channel financing system etc.
In the course of the webinar, Rakesh Agarwal, chairman - Shirdi Industries Ltd drew a parallel with the 2008 recession period when the government came out with stimuli package for saving industry and trade. He said that the present cenario is more difficult than 2008, hence government should come out with more relief package for wood sector because this sector provides employment to crores of people directly and indirectly. “We should strongly pursue that import of furniture and boards must be restricted at least for a year or two. To increase the demand, GST reduction, Income Tax rate cut, increase in the consumer loan, etc, would be helpful. Today there is a dire need of short term relief plan for the wood based industry,” said Agarwal.
Mr N K Agarwal, chairman - Balaji Action Buildwell, said that agro-based plantation timber serves as the raw material. Hence the sector, he said, should be treated under agri-products and get the benefits accordingly from the government. FIPPI president and chairman of CenturyPly Mr Sajjan Bhajanka informed that on behalf of the association and wood panel sector, he has prepared a list of demand for support of this sector and will send it to central government and finance minister. PHDCCI president, Mr D K Agarwal urged the wood panel industry sector to send their memorandum. He said that as an industry chamber they have demanded Rs 11 lakh crore of stimulus package for the MSME sector. Sources from various wood panel industry related association have confirmed that they have been preparing a list of demands and will be sending it to the government.