Kerala based Wood Panel and Plywood industry is feeling the heat of price rise in timbers. The rise in prices of rubber wood due to heavy rain in November month led to shortage and cost escalation of plywood products. According to manufacturers based in Perumbavoor, Kerala region, the prices scaled up between Rs 7500 to Rs 8000 per quintal.
The same timber was trading around six thousand rupees a month ago. Industry sources explained that timber prices are fluctuating due to demand and supply constraint. The availability of rubber wood is constraint due to heavy rain throughout the state and it has badly affected the supply to plywood and particle board industries located in Perumbavoor, Kannur and surrounding areas.
Talking to The Ply Reporter Mr. Mujeeb Rahman, President, Kerala Plywood and Saw Mills Manufacturers Association said, “Due to rain and less supply of timber, the industry has been using merely 60 % capacity. Rubber wood prices have been going up every day, and there is supply constraint at peak. The State Wood Panel Industry is bringing Melia Dubia timber from neighbouring states. It is to be noted that Melia Dubia plantations have enabled wood panel industry to use resource as raw material. The prices of Melia Dubia are little higher but there is good availability in Kerala region. “Although Melia Dubia is light weight timber, this is suitable for making Alternate Plywood,” said Mr Mujeeb.
It is to be noted that Kerala has more than 400 manufacturing establishments of making plywood, which is majorly dependent on Rubber Wood for their raw materials. The supply constraint and rising prices of this timber have disturbed the entire wood panel industry.