Imported cheap plywood is effecting market adversely

How do you view the market situation?

At present we are struggling to maintain the rate of plywood in the market. It is not possible for us to control the cost of production at the demanded price. Due to cheap imported plywood, we are also under pressure to reduce the prices. But with freight and GST and ten percent commission on our production expenses, it is becoming difficult to maintain the gap. This market scenerio is due to low quality cheap plywood from Nepal.

The major chunk of heat is faced by medium Industrialists, manufacturing high quality products. Because the dealer expects more margin, which increases the price of our product. Due to the reduced gap in price, consumers prefer branded plywood. The problem is that we do not want to compromise on our established quality, the result is that we have to compete with big established brands. Even where we are reputedly established, we are not comfortable.

Can the problem be solved if BIS is implemented?

It will definitely make some difference. At least BIS should investigate in the market. BIS mark is being used fraudulently in many places. The department is not able to do anything to stop it at its own. Department is dependant solely on complaints, which is normal avoided by everyone.

At present, it takes one to two months for BIS license renewal, whereas only 25 percent of the manufacturers have the license. Private agencies have been deployed in this work. But granting of new licenses and monitoring of fake ISI marked product will have to be expedited.

What could be the impact of mandatory BIS?

The BIS or checking agency check the finished goods in the unit. Goods from Vietnam may definitely be stopped due to implementation of BIS standards. But due to Nepal’s open border, goods can enter India deceitly. Strict vigilance will have to be taken to stop this.

Foreign producers are also trying to get license.

Amended BIS standards have not published till now. With the implementation of standards, the quality of foreign and domestic products will be at par, which will provide an equal marketing platform to both. Then everyone can display their potential personal energy, without complaint.

Do BIS license holders are facing any problem right now?

Normally; There is no problem. But the license fees are high. Suppose someone has four licenses, then the expenditure per license is Rs 1 to 1.5 lakh every three months.

It is not possible to impose strict action on small producers outright?

Even so called small producers have to spend one to two crore rupees in setting up a smallest unit. When he is capable of spending this much, then what is the problem in collecting GST and following quality standards? This is not logical. Under the guise of this logic, small manufactures are spoiling the entire system. Most of them neither comply with GST nor follow quality standards. Their only objective is to earn maximum profits with minimum production costs while evading taxes.

What is your opinion regarding GST?

If GST is implemented strictly, not only the government’s revenue will increase, we will also benefit from it. A large number of fake bills are still being issued indiscriminately. Which affects the fair producers. Inspector raj is also revived in GST. Which should be checked.

So what do you see as the solution to these problems?

First of all, GST should be implemented properly and strictly. This will facilitate middle class producers like us to work on a level playing field. The government will also get more revenue.

The mandatory implementation of BIS standards should also be expedited. Because if quality standards are fixed then producers who compromise on quality will automatically be out of the market.

Its major positive aspect is that the trading mentality in the industry will be replaced by an industrial mentality with long-term vision. Which will enable industries to organize and invest on various long term issues such as shortage of raw material.

 👇 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 8278298592, your number will be added in our broadcasting list.