Plywood, laminate industry in doldrums: High GST, chemicals prices hurt

Sharp drop in demand for plywood leading to a decline in sales and a major threat of direct and indirect job losses

The plywood and laminates industry is in the doldrums as prices of phenol and other chemicals used by it are on the rise due to a surge in crude oil prices. A high goods and services tax (GST) of 28 per cent on plywood was already proving to be a drag on the industry.  

The plywood industry has witnessed a sharp fall in demand; units are working at lesser capacities; sales have fallen; farmers’ income from selling tree wood has fallen; and the threat of unemployment is looming, according to industry players.

Janak Ladhani, director of Mumbai-based Sonkamal Enterprise and