Formalin rates are likely to jump

Formalin rates are likely to jump as National Green Tribunal (NGT) has withdrawn the interim relief provided by Haryana State Government allowing manufacturers of formaldehyde, requiring Environment Clearance (EC) to operate for six months without EC. Manufacturing units who are yet to clear EC Will have to shut down their unit with immediate effect.

Although plywood units are running presently at approx 50-60% of their capacity, still this notification will create shortage of the formalin. Sources in the industry said that Rs. 4-5 has jumped only just after the news came around.

It is to be reminded that, Government of Haryana vide order No. 16/14/2020 -3Env. dated 11.11.2020 (Annexure-R/3) decided to allow these units to continue their operation for a period of 6 months without invoking any legal action against the procedural laps occurred, with the condition that these units will apply for environment clearance within a period of 60 days from the date of issuance of this communication.”