Gurjan plywood facing tough competition
18 August 2016Indian plywood manufactured by small and medium sized plants in the so-called ‘unorganised plywood sector’ is facing tough competition from products manufactured by larger mills, reports the International Tropical Timber Organization (ITTO).
The smaller mills continue to use gujan faced veneers, traditionally the preferred timber. However, plywood faced with poplar or eucalyptus has gained market share as it is cheaper than gurjan faced panels and has been accepted by consumers.
Until the log export ban in Myanmar gurjan logs were readily available at competitive prices but now gurjan faced veneers are being sourced in Laos which has driven up production costs.
Indian owned mills producing gurjan veneers in Laos report that the authorities there would prefer to see exports of plywood rather than low added value veneers but this, say millers, would increase prices further but that the Indian market for plywood at present is very competitive and could not bear a price increase.
