Draft TGU Order 2026: Government Proposes Mandatory Reporting of Technical Grade Urea Consumption by Timber Industry

The Ministry of Commerce and Industry, through the Department for Promotion of Industry and Internal Trade (DPIIT), has proposed the “Collection of Information relating to Timber Products Industry using Technical Grade Urea Order, 2026” to collect information on the use of Technical Grade Urea (TGU) across India’s wood-based panel industry.

The proposed order, issued under the provisions of the Industries (Development and Regulation) Act, 1951, is intended to cover the entire country. It defines TGU as urea meant for industrial purposes and identifies timber-product industrial undertakings as manufacturers of plywood, hardboard, fibreboard, chipboard and similar products specified under Item 36 of the First Schedule of the Act. The scope also includes manufacturers using TGU indirectly through intermediate products such as Urea Formaldehyde (UF) resin and other TGU-based intermediates.

Mandatory Registration and Monthly Reporting

Under the proposed order, every covered industrial undertaking will be required to submit information through the Integrated TGU Supply Management System (iTSMS) portal, developed by the Department of Fertilisers.

The draft annexure prescribes a registration form requiring details such as the entity’s name, GSTIN, PAN, factory licence number, registered address, manufacturing unit locations, contact details, product description and applicable BIS licence or Importer Exporter Code (IEC) number.

In addition to registration, the order proposes a Monthly Declaration Report (MDR) for industry stakeholders. Final product manufacturers will have to report details of their products, HSN codes, intermediate products used, sources of procurement, quantities consumed and supplier information. The reporting format seeks details of TGU consumed directly as well as TGU contained in intermediate products procured from third parties.

Reporting by Intermediate Product Manufacturers

The draft also covers manufacturers of intermediate products, including UF resin. They will be required to furnish information regarding TGU procurement and consumption, supplier details, purchase invoice particulars and the entities to which their intermediate products are supplied. Monthly stock information, including opening stock, production, sales and closing stock, is also included in the prescribed format.

Implications for the Plywood and Panel Industry

If implemented, the proposed order will require greater transparency and record-keeping across the TGU supply chain, covering both direct industrial users and intermediate product manufacturers. Plywood, board and resin manufacturers may need to strengthen their internal systems to maintain accurate records of procurement, consumption, production and sales.

The proposed reporting mechanism is significant for every industry where urea is an important input in the manufacture of UF resin and other adhesive systems. It could help the government obtain a clearer picture of industrial TGU consumption and movement across the timber-products value chain.

It is important to note that this is a draft order.

The document leaves the notification date and commencement date blank. Therefore, the proposed reporting requirements should not be treated as operational or mandatory until the government finalises and brings the order into force.

Industry stakeholders should examine the draft carefully and remain prepared for the proposed compliance requirements.

Comulsory reporting of TGU by Timber Industry