Wood Based Products
Plywood forms the major segment of the wood based industry in the country. A large number of units are operating in the large, medium and small-scale sectors.

Plywood, Veneers of all types and other wood based products such as particle board, medium density fibre board have been delicensed vide Department of Industrial Policy & Promotion™s Press Note No.11 (1997 Series) dated the 17th July 1997. In terms of Press Note No. 9 (1998 Series) dated 27.8.98, issued by the Ministry of Industry, Department of Industrial Policy & Promotion, entrepreneurs who wish to obtain approval from the Government for setting up any wood based project should obtain prior clearance from the Ministry of Environment & Forests before submitting the applications to the Administrative Ministry/SIA and enclose a copy of “in principle approval given by the Ministry of Environment & Forests. However as per notification dated 27.01.2007 most of the wood items have been dereserved except wood furniture and fixtures.

As per the current Export & Import Policy, the principal raw material, viz., wood logs is freely importable under OGL.The total production of Plywood during 2005-2006 was 58,17,131 Sq. Metres and production during 2006-07 (up to December) was 36,76,264 Sq.metres. The production of Particle Board during 2005- 06 was 33,93,029 Sq.Mtrs. and production during 2006-07 (up to December) was 27,98,517 Sq. metres. The export and import of plywood during 2005-06 was Rs.160.80 crore and Rs.87.75 crore respectively. The export & import of Particle Board during 2005-06 was Rs. 21.81 crores and Rs.117.87 crore, respectively.