Rajkot: Think of buying wood furniture? Save a substantial budget because the price increase of wood has made your furniture more expensive.
The price of wood in the international market has surged because of increasing demand in China and the United States and the increase in shipping costs.
Domestic timber producers have now decided to increase price increases in the final consumer who will encourage furniture and packaging material prices up almost 20% to 25%.
According to industrial players, the cost of raw materials including teak wood, hardwood and pinewood soared in the international market and along with the cost of sending hiking in five months, wood products will be more expensive.
Gandhidham and Kandla are the largest clusters of wood producers in this country.
Nearly 70% of wood imported by India came through deendayal port in Kandla and Mundra.
The industry employs one lakh and 70% of them are migrant workers.
Price increases will also affect the real estate industry where wood processes are used as building materials.
“We have no choice but to forward costs to our customers,” said Navneet Gujjar, President of the Kandla Wood Association.
He further added that while the industry is still recovering from the effects of Covid, new high prices will definitely make requests on the market.
Hardwood is used in making furniture, while teak is used in making doors and windows, and pine in packaging materials.
Plywood and wood processed in this industry are used in real estate industries, furniture, veneer, particle boards, toys and various other sectors.
Wood is imported from New Zealand, Australia, Uruguay, Malaysia, African countries, Latin America and European countries.
This industry every year imported 40 lakh CBM (cubic meter) worth almost Rs 7,000 Crore.
According to industry sources, the rise of economic activities encourages demand for timber in China, the US and Europe to push raw material prices.
Shipping costs around the world increase by 20 to 25 percent emphasized with container shortages.