| The Past |
| In India,
plywood has been in use for some decades now, predominantly as construction
and furniture material. The plywood manufacturers, essentially timber merchants
and manufacturers, have so far encountered no obstacles in procuring their
natural material, namely, wood. But, of late, the availability of wood
has become an issue due to paucity and government regulations against deforestation. |
| The Present |
In the North
Eastern part of India, where there were dense
forests and abundance of wood until recently, government has prohibited
the cutting of wood in the forests due to environmental purposes. As an
outcome, the factories have faced difficulties and some of them have closed
down. Other factories there, and in some other regions, have been importing
timber. Another reason for importing timber is that even if you cut the
wood from the forests with the sanction of the authorities, it is an expensive
proposition now and importing timber has become an economical option.
In the rest
of the country, particularly in the Central,
Western and Southern regions, where other
principal manufacturers have their production units, the condition is not
so hazardous. The units carry on with their production activities, either
with native or imported timber. The production output may have come down
a little. |
| The Future |
| When challenged
with the question of the future, they are not perturbed greatly. They say
that even if there are alternatives, it is going to take at least 25 to
30 years for them to make a substantial impression on the plywood market.They
do not feel that manufacturing plywood has a very negative impact on the
environment. Moreover, some of them take up some plantation and tree improvement
programmes by themselves, and others do the same in association with some
research institutes. But, it is a reality that production expenses are
escalating due to material cost and labour and margins are shortening as
a result. In spite of these factors, the industry does not see any peril
in the imminent future. |
| The Need |
| Nowadays,
the government taxation has burdened the plywood industry with high excise
duty and a disproportionate tax structure. These regulations and taxation
entice the producers to undertake tax evasion procedures. It is high time
the government understood the gravity of the circumstances and took the
suitable course to alleviate the ordeal of the producers and others concerned
in the industry. The Union Budget for 1999
- 2000 has envisaged some concessions to the
housing
development sector. This augurs well for the
future of the plywood industry. However, according to the industry people,
there is much more to be done. They anticipate a fair deal from the government
for which they have been waiting for such a long time. |
