Precautions for traders regarding BWP and Marine Grade ply

With the QCO (Quality Control Order) implementation, the market for BWP 303 (Boiling Water Proof) and Marine Grade 710 plywood will undergo significant changes, as only BIS-certified manufacturers will be allowed to produce and sell these grades.                  

Here’s what to expect and what precautions you should take as a trader:

Market Position After QCO:

1. Restricted Supply: Many small and unorganized plywood manufacturers who lack BIS certification may exit the market, reducing overall supply.
2. Price Increase: Certified manufacturers will have higher production costs due to compliance with BIS standards, leading to price hikes.
3. Demand for Certified Products: Buyers, especially in government and large-scale projects, will prefer (or be mandated to use) BIS-certified plywood.
4. Transition Period Challenges: Traders may face supply chain disruptions as manufacturers work to obtain certification.
5. Increased Import Restrictions: Imported plywood must also comply with BIS standards, reducing the availability of cheap alternatives.

Precautions for Traders:

1. Source from BIS-Certified Manufacturers: Only deal with suppliers who have BIS certification to avoid legal issues.
2. Stock Planning: Maintain a buffer stock before full enforcement of QCO to manage supply gaps.
3. Verify Documentation: Always check for valid BIS certification before purchasing and selling plywood.
4. Educate Customers: Inform buyers about the importance of certified products to justify higher prices.
5. Avoid Grey Market: Do not deal in non-compliant plywood, as selling uncertified products can lead to penalties.
6. Monitor Policy Changes: Stay updated with BIS and QCO regulations to adjust your business strategy accordingly.
7. Diversify Product Range: Consider adding other certified wood-based panels to your offerings to mitigate potential losses.