The plywood and wood industry in Yamunanagar, which has already taken a hit due to the slump in the real estate sector, is now bogged down by labour shortage. As a result, production has fallen 25-30 per cent.
Haryana Plywood Manufacturer Industry Association president Devender Chawla said from the last few months the plywood industry had been facing labour shortage, which was impacting production.
Yamunanagar has around 250 plywood units, 300 piling units and 450 band saw units. With around 100,000 workers engaged in the plywood industry, the town caters to around 50 per cent of the total domestic plywood needs. Buoyed by this growth, many farmers stated are growing more poplar and eucalyptus trees.
According to Chawla, in addition to labour shortage the industry was also suffering from unscheduled power cuts. Running units on captive power was only adding to their overhead costs, he said.