KOCHI: Perumbavoor, home to 450-odd timber processing units, of which a majority got submerged in the deluge has estimated to have incurred damages worth Rs 100 crore. The Saw Mill Owners and Plywood Manufacturers Association (SOPMA) on Wednesday demanded the state government to announce an immediate relief package for the industry to regain its lost ground.
A total of 70 small-scale processing mills at Perumbavoor have been affected by the flood of which 40 have incurred losses to the tune of Rs 2-3 crore and the rest are counting losses to the extent of Rs 50-75 lakh. All 70 units are yet to restart their production as on Tuesday.
“The scarcity of raw materials - timber, which was mainly sourced from Idukki, Kottayam, Pathanamthitta and Malappuram districts - has drastically reduced, resulting in spiked up rises and up to 50 per cent production loss,” said Mujeeb Rehman, president, SOPMA. He said the industry used to consume 600 loads of timber every day before the floods, now only 100 loads are being supplied to various industries in Perumbavoor.
Several units which usually stock up at least a few loads of timber, valued at Rs 50-60 lakh per load, had witnessed their entire stockpile getting washed away in heavy flood water currents and their entire equipment getting damaged.
In the issue of insurance coverage, Mujeeb alleges laxity on the part of insurance companies which are yet to finish spot surveys and issue an interim relief for the industries to restart production. “We are unable to remove the spoilt raw materials and equipment as loss assessment is yet to be completed in many units,” said Mujeeb.
The association has demanded the state government through a relief package grant interest-free loans up to Rs 75 lakh with at least a two-year moratorium on repayment for traders to restart production.
“The 700-odd timber production units in the state together contribute about Rs 2.5 crore in taxes to the government coffers every day,” said Azeez Pandiyarappilly, General Secretary, SOPMA.
He added Industries Minister A C Moideen visited the area recently and the association had urged him, considering the gravity of the situation, to act swiftly on announcing a package. Even in the midst of a great crisis, SOPMA claims to have distributed plywood products worth Rs 50 lakh to flood-affected households in neighbouring districts.