The Punjab Plywood Manufacturers Association (PPMA) has urged the state government to press for a reduction in GST on plywood and allied products, citing a severe industry crisis that has led to closures and mounting distress for farmers.

A business delegation led by PPMA president Inderjit Singh Sohal met Punjab’s Industry and Commerce Minister Sanjeev Arora on Tuesday and handed over a detailed memorandum of demands. Sohal highlighted how the plywood sector, which sustains over 10 lakh farmers and nearly 3.5 million livelihoods, is struggling under the current 18% GST rate.

According to the Sohal, "More than 90% of raw material for the industry comes from farm-grown timber such as poplar and eucalyptus. However, nearly half of Punjab’s plywood units have already shut down, unable to compete with tax-evading manufacturers operating in other states. The delegation stressed that this unfair competition has left compliant Punjab-based factories reeling, resulting in job losses, reduced farmer incomes, and closures of ancillary industries"

Sohal further added “Reducing GST from 18% to 5% will create a level playing field, revive shuttered units, and directly benefit thousands of farmers engaged in agroforestry,” the memorandum stated. The association also argued that lower GST would encourage farmers to plant more trees, reducing the state’s dependence on the water-guzzling paddy crop and helping protect Punjab’s groundwater reserves"

Industry leaders who were part of delegation also apprised Arora that the plywood sector plays a pivotal role in rural economies, not only providing steady demand for timber but also supporting a wide range of small-scale units, transporters, and workers. They warned that unless relief is granted, Punjab risks losing a vibrant agro-based industry to other states.

Responding to the delegation, Minister Sanjeev Arora assured the businessmen that their concerns would be carefully examined. He acknowledged the contribution of the plywood sector to Punjab’s economy and said the government is committed to supporting industries that generate employment and promote sustainable agriculture.

The PPMA delegation expressed optimism following the meeting, adding that they look forward to the minister’s intervention at the GST Council level. “We hope that the government will take up this issue with urgency, as the survival of thousands of units and farmers depends on it,” said secretary genral Sukhdev Chabra.

Punjab Plywood PPMA GST Reduction Sanjeev Arora Ludhiana Industry Farmers Agroforestry Plywood Units