Due to unexpected high rise of raw materials prices, Gujarat based Decorative Laminate producers had observed shutdown of their production for a week from 8 to 15th January 2021. As per report, approx 55 laminates manufacturing units located in Morbi, Rajkot, Mehsana, Himmatnagar, Kalol, Ahmedabad were participated in bandh called collectively by Laminate manufacturers in the State. Mr. Vikas Agarwal, President, ILMA, Indian Laminates Manufacturers Association said, “In Gujarat nearly 55 units have shutdown their operation voluntarily starting from January 8 onwards. They are all on their individual call. We have not forced them to go that way. We just asked for the way out, and they opined that if manufacturing is not feasible, we should close down the operations.”
He further added, “We are unable to sell it with high price of raw material such as ‘B’ grade Kraft paper is at Rs 33 to Rs 34, Melamine at Rs 115. The producer is selling Melamine at Rs 90 but the dealers are mobilizing the trade with higher price. GSFC is government body, they must intervene in the issues as the government want to support MSMEs.”
‘The manufacturing is not possible with such a high cost. The manufacturers are worrisome and taking this step of shutting down their operation against the artificial price rise by some select suppliers. However, in this way the industry will be observing big loss with lot of overhead cost like labors, electricity, interests, operations, logistics and others, said Mr. Vikas.
Ply Reporter correspondent talked to a dozen of producers from Morbi, Rajkot, Ahmedabad on this issue, and they blame to Suppliers for creating a cartel, and raw materials price increase are not genuine. They say that the Bandh called for the protest against such bad practice, although they are making big loss by shutting their operation.