Plywood factories face dearth of raw materials

By Hari Prasad Koirala,Urlabari, Oct. 27: With the increase in the export of plywood and ready-made doors from Nepal to India, Nepali industries have started suffering from the shortage of raw materials. 

Door Concept Nepal Private Limited of Patharishanishchare-9, Jarayotole of Morang, which started producing plywood two years ago, is facing the shortage of raw materials.

Ram Kumar Rai, an industrialist, said that due to the doubling of the price of raw materials being supplied from the hilly districts of Koshi Province, the production of plywood has decreased and they have been unable to supply according to the demand. 

According to Rai, Golia wood, which costs Rs. 350 in the past, has now reached Rs. 600. On the one hand, the demand for Nepali ply has increased in India, on the other hand, due to lack of raw materials, the industry has not been able to produce according to its capacity.

Rai said that Door Concept Nepal Company with a daily production capacity of 18,000 square feet is currently producing 15,000 square feet of plywood.  According to him, the industry has not increased the price of plywood. However, the industry cannot take responsibility in the price hike after reaching the hands of businessmen, Rai said.

Currently, 200 people are working in the industry, which started with an investment of Rs. 240 million. 

There is no problem in production if wooden raw material and other raw material used in ply which should be imported from India are easily available. 

“However, due to the fact that sometimes the mountain roads get damaged, sometimes the administration blocks the supply of wood, the raw material is not available in time. So, the production has been affected,” he said.

Rai said that they have not been able to produce to be exported to India or third countries. 

“Now, we have started producing B grade plywood. Only A grade ply is exported to India and third countries,” he said. General Secretary of Belbari Chamber of Commerce and Industry and owner of Pathibhara Traders Bibek Mishra said that industrialists did not want to sell the ply to Nepali businessmen even when they offer cash. 

Mishra said that the price of ply has increased ranging from by Rs. 1.5 to Rs. 2.5 per square feet based on the quality and thickness.