Plywood to cost more in Punjab

To save itself from constant losses, the plywood industry of Punjab has decided to increase the prices of plywood and plyboard in the state by 8 per cent with immediate effect.

This is because of sharp and continuous rise in the prices of chemicals, wood, veneer and other raw materials required for manufacturing plywood and plyboard.

The plywood and plyboard industry in Haryana, which is the largest manufacturer in the country, has already increased the prices ranging between 15 and 20 per cent in the last six months.

In other plywood-manufacturing states, prices went up by 15 per cent in the same period.

Speaking to Business Standard, Inderjit Singh Sohal, president, Punjab Plywood Manufacturers Association, said the reason for taking this decision was for six months, prices of phenol, formaldehyde and face veneer had shown an upward trend of about 20 per cent.

"The agro-wood planted and grown by farmers such as 'popular' and 'safeda' has also shown an upward trend of about 25 per cent to 30 per cent in the same period. At the same time, there has been no increase in the prices of plywood and plyboard for a long time, which started causing the crisis and a shut-down situation for the whole industry," he added.

"Therefore, the decision to raise the prices at 9 per cent on the prevailing rates was taken," added Sohal.

The industry wants the value-added tax on raw materials like plywood and plyboard in the state to be reduced from 12.5 per cent to 4 per cent, because the reduction will bring down the prices of plywood, plyboard and furniture.