QCO AND THE MARKETS Current Scenario & the Future – Part 1

Suresh Bahety

Ply Insight and WTA heartily welcome all the dignitaries who have joined in today’s discussion.

Now a days, new changes are visible in the trade policies of the entire world. Developed countries are not allowing any other developing country any chance to emerge.

So, how much will it be in the interest of the country to surrender by defending ourselves.

Before the start of the discussion, I would like to remind all the panelists about GST. When GST was announced, there was disappointment in the industry.

A system that has been running for years, which has made deep inroads into our way of doing business, the way of working of which is well known to us.

Whenever there is a change in any system, we are definitely surprised and troubled, that will we be able to adjust ourselves in the new system.

But all of you have seen how happy the entire business world is with GST today. Today everyone is convinced that GST was a revolutionary step for the industry.

Can’t we repeat the experience of GST in QCO?

Why can’t we assure ourselves that the Indian government will take every possible step to protect Indian industry?

Why should we not trust the policies of the government?

After all, GST too had numerous problems in the beginning. These were resolved from time to time. It is also important that the country will be able to avail the benefits of QCO only when 100% of the industries come under the ambit of BIS. How will this be possible?

How will the fear of industries joining the BIS for the first timber be removed?

This is the burning question of today.

Subhash Jolly

We welcome all the panelist of this episode of webinar from plyinsight and WTA.

After the postponement of QCO for one year, enthusiasm to apply license is very poor.

There is no doubt, that, Import must be banned, to strengthen the indigenous industries.

At the same time, Indigenous industry should come forward to join hands with BIS, to capitalise the benefits of QCO.

Dr. M P Singh

The extension of time for QCO was given so that all the industries get sufficient time to obtain the license. When the standards will be implemented on stipulated time, no one can complaint say that we were not given sufficient time to comply.

If there is any problem in the licensing process, it can be resolved by BIS. We are in talks with BIS to provide additional facilities to address the problem of infrastructure, especially laboratories.

The MSME can take benefit of Common Facility Centre. It can get assistance of up to Rs 20 crore. The management committee will have to raise Rs 2 crore. In this way, we can easily overcome the problem of laboratory. Secondly, a common laboratory can also be built by the association.

The government is committed and vigilant to produce quality products. These QCO are issued not only in the wood industry but in so many other product. The government is trying to promote the country’s own producers by preparing such standards.

Earlier, the Ministry of Electronics had come up with a scheme alike QCO. PLI was also introduced along with this scheme. The country is getting benefit from this. The country has achieved a remarkable position in mobile handset.

Inspired from it, different ministries have taken a policy decision to implement standards in different ways. We have to become assure partners in this policy decision of the government. Whatever be the platform, we should put our point timely.

Instead of putting our point individually, it will be convenient, If we put our point through association collectively. At the same time we will also have to help each other.

Sometimes it so happens that those who are unable to implement such control in their organization, or who think that this is a difficult path, shift to another business. This is a hard fact to be understood by all.

We have notified the modified standards. More new demands have been raised, which are under scrutiny. We are trying to put different parameters in IS: 303 (general purpose, plywood). So that almost all types of plywood products will cover under the scope of IS: 303.

The industry can produce the product of any of the suggested standard, to get the license of that particular standard. Now there is no need to make more standards separately. If range and value is given in plywood of general purpose, maximum plywood products will be covered in it.

Samples of products from Kerala were checked, and it was found that they can be covered under the purview of these general standards.

This has been for mulated, so that no one faces any problem due to QCO. Similarly, there should be different categories of standards in particle and fiber boards. So that the producer and the buyer do not face any problem.

The effort is to make standards in such a way that all categories of products are included in it. So that the standards are consumer and producer friendly. So that the security that is expected from QCO is fulfilled. The government is also encouraging the local industry.

CN Pandey: Processing of the license should be fast

The government has done their best for the industry. These standards have been prepared collectively by technical institutes, scientists, industrialists, so that the wood industry is benefitted.

One of the objectives of QCO was to stop low quality imported products. In our wood industry, out of 3,300 industries, 50 to 60 are big industries. The rest come under the MSME category.

There is a huge shortage of laboratories. If all industry operators apply for the license, does BIS have so many resources to issue licenses to everyone immediately?

In such a situation, attention should be paid to infrastructure facilities. Such a system should be developed, in which industrialists can get licenses in time without any problem.

How can we make this process easier?

Dr. MP Singh: Discussions have been held with BIS on this subject, there will be an online meeting very soon.

We got assurance from BIS that this will be discussed. This online meeting can be held in the first week of June or on Environment Day on June 5. When industrialists will put forward their views to BIS, It is expected that a positive solution will come out.

Dr. CN Pandey: This is good. Because due to such problems the process of getting license is slow.

The second point is that the quality of raw material is low, that’s why standards of raw material should also be fixed.

Thirdly, we have a huge shortage of trained workers. Because until trained workers are available, it will be a bit difficult to produce high quality products.

Quality standards should be set sooner or later for the chemicals we are using in the wood industry. Unless the quality of chemicals and raw materials is fair, how can a high quality product be produced?

We hope that these efforts will bring positive results. But there are three thousand units in MSME, if even three or four hundred of them do not proceed for the license, no improvement will be seen.

Common Facility Centre etc. can get stuck in the government system. Therefore, we will have to be attentive for it ourselves. Because everything should not be left for the government.

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