New Delhi: The government plans to make Indian Standards Institution (ISI) certification compulsory for all plywood makers from next year, two people familiar with the matter told Mint. Plywood that’s advertised as boiling-water-proof will also require ISI certification to that effect, they added.
The move is aimed at improving the quality and durability of plywood used in furniture and other goods, ensuring they last longer even in challenging environments, one of the people said.
It’s also expected to curb the import of low-quality plywood from Indonesia, Vietnam, Malaysia and Nepal. This is particularly important as India’s trade deficit in plywood widened from $85.83 million in FY19 to $154.57 million in FY24.
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“The new standards will require plywood manufacturers to undergo a mycological test for fungal resistance for all grades of plywood,” one of the people said.
Mixed reactions from plywood makers
JK Bihani, president of Haryana Plywood Manufacturers Association, told Mint, “The new standards will improve the quality of plywood, ensuring that consumers receive better products. The industry has enough time to comply with the norms, which will benefit manufacturers and compel those producing substandard products to rectify their practices.”
However, Naresh Tiwari, chairman of the All India Plywood Manufacturers’ Association, said the move will cause plywood prices to jump 15% next year. He also expressed concern about the import of substandard plywood products, and urged all plywood makers to adhere to Bureau of Indian Standards (BIS) norms.
Certification for BWP plywood
“One of the most important quality standards that has been made mandatory from next year is ISI certification for boiling-water-proof (BWP) plywood,” said one of the people cited above.
“The BWP process ensures stronger and more durable plywood by testing how many times it can be exposed to boiling water before delaminating. This high-end plywood is designed for specific applications, catering to a limited number of consumers,” said Manraj Singh, proprietor of Woodbay India, Yamuna Nagar in Haryana.
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He added, “BWP plywood is generally used to make kitchen cabinets, bathroom furniture, outdoor furniture, partitions and paneling, and exterior doors and windows, among other things, such as boats.
BWP plywood costs significantly more than regular plywood. Regular plywood with a thickness of 18mm is available for ₹45 to ₹52 a square foot, while the BWP version ranges from ₹90 to ₹100 a square foot.
Queries emailed to spokespersons of consumer affairs ministry and BIS remained unanswered.
Imports peak as exports fall
Kerala, Haryana, Punjab, Uttar Pradesh, Uttarakhand, Tamil Nadu, Karnataka and Gujarat are among the key plywood manufacturing hubs in India. Over the past few years, the industry has seen significant shifts in global trade. While plywood exports increased steadily from $32.28 million in FY19 to $75.26 million in FY23, they dropped to $57 million in FY24, suggesting a potential change in market conditions.
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In contrast, plywood imports were more volatile, hitting a peak of $132.43 million in FY23 after declining from $118.11 million in FY19, commerce ministry data showed. This fluctuation, coupled with the steady rise in exports, cause the plywood trade deficit to shoot up.
“These trends highlight the challenges and opportunities in India’s plywood sector, indicating a need for strategic planning and market analysis to sustain growth and competitiveness in the global market,” said Ajay Srivastava, founder of Global Trade Research Initiative (GTRI).