Covid has dented and deepened the bad impact on Real Estate and Housing Sector woos, and its effect is visible on building material products. As per recent reports, the effect is also noted on Imported timber products demand in country, which has reported a huge drop in July month. As per Kandla Timber Association (KTA), the timber shipped to Kandla-Mudra port was noted to 2.02 lakh CBM and 2.16 lakh CBM in April and May Month respectively, which had started dropping from June month, which reached to 1.54 lakh CBM and further reduced in July Month to 0.76 lakh Cubic Meters. The shipments received in April and May month were ordered before Covid Era, which had been reduced Post Covid.
Timber importers from Gandhidham say that it is difficult for to maintain the payment flow post Covid because once we bring the timber containers from port to the warehouse, they have to pay GST at the very same period, which they get back once they have sold these timber to market. It is a rotation of at least 3-5 months and thus huge money gets blocked in tax as well as markets, hence the importers need and forced to invest more capital in business. The capital starving market in COVID era has made the importers business operation tougher in Post Covid times
Reports from Gandhidham also find that timber importers have hired Custom specified area on rent, and parked their timber stocks in these area temporarily because the parking cost at port is very high. Once they get orders, they take materials from these areas by paying Custom Duty and GST. Mr. Navnit Gajjar, President, Kandla Timber Association’ says that by this way, timber importers are saving their small amount but this is temporary phenomenon. The KTA has requested Government to reduce GST and Custom duty on timber to support timber importers business and also helping make to make furniture in India.