The plywood industry in Yamunanagar (an industrial town in Haryana, about 100 km south-east of Chandigarh) continues to suffer on account of various reasons even as the plywood manufacturers are demanding reduction in excise duty.

Haryana Plywood Industry Association General Secretary J K Biyani maintained the hike in excise duty to 8 per cent from 4 per cent on poplar and eucalyptus in last year’s Union Budget had seriously crippled the plywood industry.

The hike in excise duty coupled with factors like the plywood industry suffering the aftermath of economic downturn that crippled the real estate sector had resulted in business for plywood units coming down by 20 per cent.

Yamunanagar has around 250 plywood units, 300 piling units and 450 band saw units. With around 100,000 labourers engaged in the plywood industry, Yamunanagar caters to around 50 per cent of the total plywood needs of India.

J K Biyani maintained that since the hike in excise duty was playing havoc with the plywood industry in Yamunanagar, the government needed to reduce the same.

In addition to hike in excise duty the plywood manufacturers also are suffering on account of labour shortage. In addition the industry is also suffering power crisis