Plywood Rates To Go Up By 10% In Punjab On Weak Rupee

3 Sep, 2013

CHANDIGARH: Punjab's plywood industry today announced to raise plywood prices by 10 per cent citing soaring input cost due to fall in rupee against US dollar.



"We have today decided to increase rates of plywood and plyboard by 10 per cent across all the product categories in view of increase in raw material cost," Punjab Plywood Manufacturers Association Chairman Ashok Juneja told PTI here.



This decision was taken at a meeting of all the plywood makers which was held in Ludhiana today.



"Weakening of rupee against US dollar has raised our cost of raw material including face veneer, formaline, phenol and other chemicals used in plywood business considerably, which forced us to revise rates upwards," he said.



Industry imports these chemicals from several countries, including China, Vietnam, etc.



Punjab has about 200 plywood manufacturers in the state with production of Rs 500 crore per annum. Rates of plywood items range between Rs 25 per square feet to Rs 75 per sq ft.



Indian curreny has weakened by over 15 per cent against US dollar in the past few months.



In the meeting, plywood makers have also sought from Punjab government to declare plywood industry as agro-based industry which will entitle them to incentive in the shape of lower rate of interest from financial institutions.



"We will get 5 per cent interest subsidy on bank loans if our industry is declared agro-based industry by the Punjab government," Juneja said.



Industry blamed the state bureaucracy for not issuing notification with regard to agro-based industry status despite Punjab Chief Minister Parkash Singh Badal announcing in this regard.



"Punjab CM had announced that plywood sector should be given the status of agro-based industry on January 11, 2013 but it had not been done so far," he alleged.



Plywood makers also demanded that the state government should not charge any market fee on poplar and eucalyptus trees sold by farmers directly to the industry.



On the issue of controversial E-Trip system, plywood makers have said a meeting with the Deputy Excise and Taxation Commissioner would take place with representatives of plywood makers tomorrow to resolve the issue.



"We demand that E-Trip system should be made optional for the industry," he said, adding: "If the lumpsum tax is imposed on plywood, then industry should be allowed to take input tax credit against tax paid."

Source:-economictimes.indiatimes.com