KOCHI: Rising imports from China and other SE Asian countries is posing a threat to the domestic rubber wood industry , which has so far held steady despite a steep fall in rubber prices. Price of rubber wood, which is used in the plywood industry and in the manufacture of furniture, has not fallen because of demand from these sectors.
But now, the increased availability of imported rubber wood and furniture is impacting the demand for local products. Furniture made of treated rubber wood has become popular in urban centres.
Rubber wood is priced around Rs 6,000 a tonne in the local market, with good quality wood getting atleast Rs 500 more. “The imports include both treated wood and furniture. They are better in terms of style and finishing as the factories there have latest machines,” said Antony John, MD of Metrowood, a leading rubber wood furniture maker. The imports are coming from China, Vietnam and Malaysia, all of which have overtaken India in natural rubber production.
“The products are 10-20 per cent cheaper, which has hit our sales. Our rubber wood is superior in quality,” said Jameskutty, MD of Gomma Wood Products, adding several manufacturing units were locked out earlier because of several reasons, including a 5 per cent-purchase tax on rubber wood that was lifted some years ago.
Another factor is sluggish demand in the plywood industry . The Perumbavoor region near Kochi has a large cluster of plywood manufacturing units catering to the demand in southern India as well as n the Gulf markets. This region alone consumes about 7,500 tonnes of rubber wood daily. It was de mand from the ply wood industry that helped prices of rubber wood stay firm in the range of Rs 6,000-6,500 a tonne in the past one year.
“The offtake of plywood has shrunk because of a recession in the construction industry. But rubber wood prices have not dropped because there is over production in plywood sector,” said Mujeeb Rahman, president of Saw Mill Owners and Plywood Manufacturers’ Association.
Availability of rubber wood in the local market hasn’t increased despite the forecast rubber prices are not likely to improve in the next few years, indicating not many growers are willing to chop the trees.
