Shortage of raw material plunges plywood industry into crisis after floods

Crippled as they are by floods, several plywood factories in Perumbavoor are staring at a new crisis.

Plywood raw material lying at a factory which was inundated in the flood, at Kandanthara near Perumbavoor | Melton Antony

PERUMBAVOOR : Crippled as they are by floods, several plywood factories in Perumbavoor are staring at a new crisis. The industry is facing a severe shortage of raw materials, especially rubberwood. Many  factories have suspended operations as rubber wood has stopped arriving from other districts.Plywood industries in Perumbavoor chiefly depend on Pathanamthitta, Kottayam, Thrissur and Idukki districts to meet the requirement of rubber wood for plywood production.

"Since the flood was severe in central Kerala, the arrival of rubber wood from other districts has stopped for the past one month," said Sawmill Owners and Plywood Manufacturers Association (SOPMA) president M M Mujeeb Rahman.

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"Since a majority of the roads are damaged, transportation of these raw wood has been affected. Some factories had stocked raw materials but they were washed away completely. Several factories have been forced to cut production to 50 per cent. There are around 400 plywood factories in Perumbavoor and very few are standing firm amid the crisis."  As factory operations have remained stuck, a number of outstation workers have left for their native places. Usually crowded on weekdays, Perumbavoor wears a deserted look after the floods.

"It will take a month or two to recover from the situation. After demonetisation and GST, floods have put the sector in a crisis again," Mujeeb said.As many as 70 plywood factories located in Perumbavoor and nearby areas suffered damages in the floods. Forty factories were damaged fully while 30 took a partial hit. SOPMA estimates  losses from floods is close to Rs 100 crore. Factories have incurred losses in the range of Rs 50 lakh to Rs 2 crore.

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Manufacturers are now eyeing interest-free loans provided by the state government to industries affected by floods."The government has promised to provide Rs 10 lakh as interest-free loan," said Sadath of Chaithanya Plywood. "We want the loan to be increased to Rs 25 lakh. The pending insurance procedure should be completed without delay so that we can restore our units in the next two months."

There are around 400 plywood factories in Perumbavoor and very few are standing firm amid the crisis. As many as 70 plywood factories located in Perumbavoor and nearby areas suffered damages in the floods. Forty factories were damaged fully while 30 took a partial hit .