The government action to tame illegal uses of agriculture grade urea has created a panic among industries. The crackdown by government agencies in various states has not only created a panic but also stalled the production for many units. The pressure to put hold on use of Agriculture grade Urea by some of the wood panel, crockery, switches kind of industries has become a full fledged planned action with legal angle to it.
According to reports gathered by Ply Reporter, there are around more than 120 industries that have been served notices or being raided for checking the misuse. There are reports from Rajasthan, Kerala, Andhra Pradesh, Telangana, Haryana, UP etc where inspection teams have visited to check the status and if Agriculture grade Urea is found, the company promoters had been issued warrants or served notices to furnish bills and data.
The entire wood panel industry is certainly now eager to adopt fair means and searching for Technical grade urea availability which is said to be available at around Rs 75 a kg. The agriculture grade urea is normally available at Rs 8 kg and that difference of 8 fold in cost makes the big attraction for industries to use it or mix it.
Speaking to various Industry Associations, The ply reporter found that “Associations support the uses of Technical grade Urea by every wood panel industry but are seeking the government role in making the Technical grade Urea availability through proper channels and in consistency”. The FIPPI (Federation of Plywood and Panel Industry) Chairman Mr Sajjan Bhajjanka expressed that ‘Industry is committed to adopt honest industry practices and FIPPI will make efforts to find a way forward”.
The regional Industries and their related leaders express that “Technical grade Urea availability is a big cause of concern, because the agencies who are selling Technical grade Urea are only the main culprit. In fact they are ones who bill us for Technical but send Agriculture grade products without our knowledge” said many industry people. The industries are vocal about the need of government intervention to create an authorised channel from where industries can procure Technical grade urea instead of being robbed in hands of importers.
Till writing the news, there are hundreds of industries from the wood panel segment who are preparing their last three years record and trying to streamline their raw material availability status.