Federation of All-India Timber Merchants Saw Millers and Allied Industries has recommended new policies to enable smooth business of wood-based industries in post Corona era. Mr. Naval Kedia, President of the federation informed that he has sent a letter to government of India for consideration.
1. Advance deposit of IGST of 18% on imports must be abolished as the capital remains invested in GST for 3-5 months.GST slab of 18% across almost all wooden products must be brought down to 5% or 12%.
2. Import duties of raw material (round logs) should be reduced from 5 % to 0%; for secondary raw materials like veneer and sawn timber from 10% to 5% and for finished panel products like plywood particle boards, MDF floorings, etc, from existing 10% to 15% and readymade furniture from existing 10% to 20%.
3. The banks must be instructed to remove timber and allied industries from their negative list (which was the case pre Covid); NPA in wood-based industries is less than 3% of total exposure to the Industry.
4. Currently the Indian Wood and Allied Products industry survives on imported wood except for parts in north India like Punjab, Haryana, UP and some states in south India like Karnataka and Kerala which have supported agro-forestry in exemplary ways. Similar efforts are required by all state governments and central government to promote agro-forestry which will in turn generate massive employment and also save billions of dollars going out under current Import systems. The exodus of migrant labourers going back to their natives can be given immediate employment to grow trees for wood-based industries in small ways.
5. AII agro-forestry products (very minimal) and imported wood (maximum) should not require Forest Transit Pass (TP) for inter-state and intra-state movement as the wood based industries hardly use 5% wood from Indian natural rain forests. Private trees (trees outside forests) cutting should not be concerned with forest department. All agro-wood and imported wood permits should be converted into pan-India permit to transport interstate without any transit pass (TP).
6. A TIMBER BOARD should be constituted within MOEF, Ministry of Agriculture, Ministry of Irrigation along with industry representatives, farmers and scientists from Indian Wood Science and Technology (IWST) to promote agro-forestry in a massive scale throughout the country