Current Situation of the Plywood Industry in India

The Indian plywood industry continues to face unprecedented challenges despite the halt in imports that began on February 28, 2025. Nearly three months have passed, yet the domestic market remains sluggish with no significant uptick in sales or demand. This stagnation is alarming given the absence of approximately 700 containers per month of imported Prelam, Particle Board, MDF, HDHMR, and Plywood.

Key Issues Facing the Industry:

1. Rising Raw Material Costs vs. Falling Sales:

The price of essential raw materials has been steadily increasing.

In contrast, sales volumes have dropped, putting immense pressure on margins.

Smaller and micro manufacturing units are the worst hit, with production down by nearly 30%.

2. Market Credit Worsening:

Increased credit cycles in the market are leading to liquidity crunches for manufacturers and dealers alike.

Delayed payments are causing further operational difficulties.

3. Regulatory Pressure – BIS Mandate:

Starting May 28, 2025, approximately 70% of plywood factories will fall under the mandatory BIS (ISI certification) compliance.

This transition is expected to further increase prices by 6–7%, adding another layer of financial burden on manufacturers.

Despite the government’s ban on imports, domestic industries are still struggling to capture the market and meet the demand effectively. This indicates systemic issues that cannot be resolved by import restrictions alone.

A Call for Government Support and Industry Unity:

To safeguard the future of the Indian plywood and related industries, it is imperative that we engage in urgent dialogue with the government. We request immediate policy relaxation on the import of the following key raw materials:

Timber logs/Face veneer/Core veneer

These inputs are essential for the sustainability and growth of Plywood, MDF, and Particle Board plants across the country.

We urge leading companies and industry associations to take the lead in initiating this discussion and advocating for structured support. The time has come for collective action. We are not just waiting for a miracle—we must create one together to revive and protect the backbone of India’s wood-based manufacturing sector.

Regards

 👇 Please Note 👇

Thank you for reading our article!

If you don’t received industries updates, News & our daily articles

please Whatsapp your Wapp No. or V Card on 8278298590, your number will be added in our broadcasting list.