{"id":29981,"date":"2022-09-05T12:15:38","date_gmt":"2022-09-05T06:45:38","guid":{"rendered":"https:\/\/plyinsight.com\/?p=29981"},"modified":"2022-09-05T12:53:04","modified_gmt":"2022-09-05T07:23:04","slug":"level-playing-field-in-urea-procurement-need-of-the-hour","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/level-playing-field-in-urea-procurement-need-of-the-hour\/","title":{"rendered":"Level Playing Field in Urea Procurement Need of the Hour"},"content":{"rendered":"

Level playing field (Fair Market Practices) in urea procurement is the need of the hour in Plywood & Panel Industry Sector in India<\/span>
\nThe Covid-19 pandemic brought in unforeseen hardships to our plywood & panel industry sector, just like in every other sector across the country. However, we have stood united as always and have been able to see through the tough times which are occasionally thrown at us naturally and unnaturally.<\/span><\/p>\n

Post Covid-19 the business and industry scenarios changed drastically, along with rapid geo-political changes across the world. With the active role played by our PM Shri Narendra Modiji, India’s international presence is ever increasing and international markets have opened up more to our products & services during recent times. <\/span><\/p>\n

Export inquiries have increased for factories, more & more factories are trying to make better products at better pricing and service orientation. This is the best time for our industry sector to scale up and deliver the best of our products & services.<\/span><\/p>\n

Suddenly came the urea raids and punitive actions from the governance side, as we were readying for making enormous efforts towards capacity upgrade, more production, more employment and competitive world-class products. The administrative effort to tackle the big problem of urea-diversion is well appreciated and accepted by the industry in general. However, then came the consequences in the supply chain system.<\/span><\/strong><\/p>\n

The recent strictness in checking neem coated urea-diversion to industry has brought to light lot of shortcomings in the supply chain systems and illegal trade of diverted urea for industry use. The fact is that only the industry seems to be made the wrong-doer in society and most of the supply chain link go scot-free. Every industries purchase urea supplied by traders in good faith and trust, packed in technical grade urea bags by paying the invoice amount that is inclusive of GST & cesses.<\/span><\/strong><\/p>\n

Any industry tries to purchase raw materials at the best possible sourcing cost in order to remain competitive, and also provide manufactured goods to consumers and clients at the best possible pricing. This ensures win-win position to the entire stakeholder chain, including the society at large. Plywood & panel industries sector is one such sector that does not have windfall profits, nor can it make high profits by any means. It is a normal-to-low-profit industry in general. <\/span><\/p>\n

Manufacturers take enormous efforts to run the factories, maintain competitiveness, provide and maintain employment, and keep all the stakeholders happy. It is one of the few industry sectors which depends on win-win situation of the entire stakeholder chain starting from farmers supplying the Agriwood to the final customer buying panel products in the market. This sector is also one which provides lot of employment to semi-skilled and unskilled people from all walks of life.<\/span><\/p>\n

In this scenario, many traders of urea are trying to make huge money by supplying neem coated urea in technical grade packing, to make urea formaldehyde resin for plywood manufacture. No factory in India has the facility to check the quality of urea raw material, whether it contains neem coating or not. We also do not have exclusively technical grade urea suppliers in our country.<\/span><\/p>\n

The current situation is very scary for plywood and panel manufacturing factories in India because factories buy raw materials in good faith and trust, from suppliers after paying the invoice amount which is inclusive of GST & cesses. This faith & trust is taken advantage by many suppliers by making use of the current situation. Industry does not have the capacity to import large amounts of urea in bulk because of the lengthy credit-sale system prevalent in India combined with tight profit margins. The small & medium manufacturers need to be immediately safeguarded from harassment & action by the administrative authorities. They will not have the strength & capacity to fight the current ambiguous system combined with administrative legal actions. Manufacturers are now getting into a scape-goat kind of situation and becoming the wrong-doers in society, whereas suppliers and traders make all the money and enjoy business happily.<\/span><\/p>\n

There has to be a win-win model of urea sourcing, facilitated by the Ministry of Chemicals & Fertilisers itself, for the benefit and survival of small & medium manufacturers.<\/span><\/p>\n

It is suggested that a government licensed exclusive technical grade urea trading system be implemented, wherein industrial buyers will record the licensee details during purchase of technical grade urea. Import traders will also conform to this licensing system, and traders of technical grade urea cannot trade neem coated urea for agriculture use.<\/strong> This alone might provide a level playing field through fair market system for the industries \u2013 small and big. Hoping & wishing that this approach is taken as early as possible by the Ministry. Jai Hind!<\/span><\/p>\n

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Level playing field (Fair Market Practices) in urea procurement is the need of the hour in Plywood & Panel Industry Sector in India The Covid-19 pandemic brought in unforeseen hardships to our plywood & panel industry sector, just like in every other sector across the country. However, we have stood united as always and have […]<\/p>","protected":false},"author":1,"featured_media":29994,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3332],"tags":[830,1408,3222,3221,2804,1173,1333,97],"class_list":["post-29981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-september-articles-2022","tag-plywood-manufacturer","tag-scientist","tag-technical-grade","tag-technical-grade-urea","tag-urea","tag-vaidyanathan-hariharan","tag-yamuna-nagar","tag-yamunanagar"],"yoast_head":"\nLevel Playing Field in Urea Procurement Need of the Hour - PLY INSIGHT<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/plyinsight.com\/hi\/level-playing-field-in-urea-procurement-need-of-the-hour\/\" \/>\n<meta property=\"og:locale\" content=\"hi_IN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Level Playing Field in Urea Procurement Need of the Hour - PLY INSIGHT\" \/>\n<meta property=\"og:description\" content=\"Level playing field (Fair Market Practices) in urea procurement is the need of the hour in Plywood & Panel Industry Sector in India The Covid-19 pandemic brought in unforeseen hardships to our plywood & panel industry sector, just like in every other sector across the country. 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