A huge capacity addition in MDF has taken place in 2018 in the country that is yet to be absorbed in the markets.
Year 2018 witnessed shift in the way plywood industry and trade had been operating so far in India. The tax reform brought everyone on same level playing field thus branded plywood became cheaper.
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We have seen the situation happened with Baggase based Particle Board Industry in Gujarat, which was almost shut down due to non-availability of raw material since 75 days.
Domestic Particle Board demand is growing with the increase in plants and capacity in the country. From 236.2 crore in FY 15-16 to 222.6 crore in FY 16-17 marks a big 6% drop in particle board imports.
The fear of bagaase particle board units fear to halt has now become true due to almost no availability of bagasse at sugar mills. At present the particle board manufacturing plants are not running even at its 40 % of capacity leading to manufacture