Mint Explainer: Why India’s plywood business faces an environmental crackdown

This follows complaints about pollution from plywood items in Haryana’s Yamuna Nagar district. The tribunal flagged the shortage of nationwide norms on manufacturing unit location, air pollution management gear, and dealing with of carcinogenic chemical substances, amongst different issues.

Mint explains the NGT ruling and its fallout.

What did the NGT say?

On 27 May the NGT’s principal bench, led by chairperson Justice Prakash Shrivastava, directed the atmosphere ministry to draft complete pointers for the plywood business. Despite the business’s excessive air pollution index of 78.3, it’s at present categorised as a ‘moderate’ polluter underneath the Central Pollution Control Board’s (CPCB’s) ‘orange’ class, with no devoted nationwide rules.

“Plywood industries, having a air pollution index of 78.3 and falling within the ‘orange’ class, are acknowledged to trigger air and water air pollution… however no pointers have been issued concerning location, air pollution management units, and safeguards to be adopted in the usage of carcinogenic chemical substances,” the NGT order said.

The tribunal directed the ministry to file an action-taken report inside six months.

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The NGT additionally highlighted extreme air pollution from plywood items, particularly in Haryana’s Yamuna Nagar district—one of many nation’s largest plywood hubs—the place factories emit dangerous pollution and carcinogenic chemical substances corresponding to formaldehyde with out correct controls. The tribunal ordered pointers on essential points together with manufacturing unit location, air pollution management gear, protected dealing with of adhesives, and risky natural compound (VOC) emissions.

The tribunal additionally directed the Haryana authorities and the state’s air pollution management board to boost its monitoring of plywood factories. This contains reviewing clearances, inspecting resin manufacturing, imposing protected chemical storage, correct disposal of wooden ash, guaranteeing useful air pollution management gear, and making compliance data publicly accessible on-line. The Haryana board should report its progress inside three months.

What sparked the transfer?

It was triggered by Sumit Saini, a resident of Damla village in Yamuna Nagar, who petitioned the NGT in May 2022, citing extreme air and water air pollution from close by plywood factories. He described black smoke, ash deposits, well being points, and a scarcity of air pollution management in round 20 factories.

The NGT handled his letter as a suo motu case and arrange a joint committee comprising state and native authorities to research the matter. The committee’s report stated most factories have been compliant with air pollution legal guidelines, however the NGT discovered the inspection inadequate and ordered additional probes, significantly into formaldehyde emissions and VOC safeguards.

Why plywood air pollution is dangerous

The NGT order famous that plywood manufacturing includes wooden and adhesives corresponding to phenol formaldehyde and urea formaldehyde, which launch VOCs and carcinogenic fumes, particularly throughout sizzling urgent. Pollution additionally arises from wooden mud, gasoline combustion, chemical waste, and improper disposal of wooden ash. 

These emissions contaminate the air, water, and soil, posing well being dangers and environmental injury. Currently, there aren’t any plywood-specific air pollution requirements—solely basic boiler emission guidelines.

What lies forward for the business?

The business has expressed considerations over the NGT ruling.

Ajay Maniktala, ex-president of the Haryana Plywood Association, stated, “We are tense concerning the order. These legal guidelines would possibly improve operational prices for the items. We usually are not towards framing legal guidelines, however they need to think about older items which have been working for years and will not have the ability to adjust to new norms. We are searching for reduction in compliance norms,” he added.

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According to Maniktala, the affiliation plans to satisfy Haryana’s chief minister to current their grievances and options.

How huge is India’s plywood market?

India’s plywood market was valued at ₹23,510 crore in FY25 and is projected to develop at a compound annual charge of 5.44% to hit ₹38,790 crore by FY34. The business faces competitors within the type of low-quality plywood imports from Indonesia, Vietnam, Malaysia and Nepal, contributing to India’s widening plywood commerce deficit, which grew from $85.83 million in FY19 to $154.57 million in FY24.

Key manufacturing hubs embrace Kerala, Haryana, Punjab, Uttar Pradesh, Uttarakhand, Tamil Nadu, Karnataka and Gujarat. While exports grew from $32.28 million in FY19 to $75.26 million in FY23, they dipped to $57 million in FY24, indicating shifting market dynamics.

Why Haryana is vital

Haryana, particularly Yamuna Nagar, is central to India’s plywood business, contributing 40-50% of nationwide output. However, the business faces a uncooked materials disaster. It wants greater than two lakh quintals of poplar and eucalyptus wooden day by day however at present receives lower than half of this, partly as a result of new plywood factories in Uttar Pradesh and Uttarakhand are attracting native wooden suppliers.

The Haryana Plywood Manufacturers Association had earlier urged the state authorities to cut back market charges and assist the business amid these challenges.

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