Rocketing dollar prices against Rupee is reported to help domestic MDF manufacturers in taking over imported MDF market. Report from trade hinted that the price gap between imported and domestic MDF prices has been narrowing because the dollar rates have jumped by over 15 percent in last two months. Reports say that domestic MDF producers have been receiving some fresh queries in September, which has brought happiness as earlier they were compelled to reduce their capacity due to slower demand.
Data suggests that India imports approx Rs. 500 crore of MDF every year, which is almost 10 percent cheaper than domestic produce. India’s MDF manufacturing companies have been struggling with huge production capacity on the contrary staring at a dull demand scenario. The companies are trying hard to push the sales by offering schemes on bulk order but they have failed to achieve the target resultantly stocks have piled up at factories and warehouses.
It is noted that the MDF production capacity grew up more than 100% within a year after commencement of new big plants of CenturyPly, Action Tesa and Green Panel but the demand is growing steadily at 16-18 percent growth rate. Although, MDF is steadily entering into wider interior décor purposes like decoration, flooring, carcase, shutters, wardrobes, grills, racks, doors etc, besides the high dollar prices have indicated a ray of hope of domestic producers.