Desi companies cheer quality norms as mfg gets boost
New Delhi, Jan 3, 2025
The plywood and MDF board industry in India, which initially opposed the government's quality control order, now supports its implementation to benefit consumers and enhance industry capacity utilization. Over 200 items, including furniture and steel products, will be subjected to QCOs to ensure international quality standards, boosting investments and local production.
Around a year ago, the plywood and MDF board industry had approached the govt, vehemently opposing the move to impose quality control order (QCO), providing specifications that domestic and industry players would have to follow.
Late last month, when an industry delegation met commerce and industry minister Piyush Goyal, they were keen that the govt rolled it out by February. The move is seen to be benefiting Indian consumers, who for years have been wondering if the quality of plywood and MDF boards they bought for putting up cupboards and kitchen cabinets were up to the mark.
"The implementation was postponed by a year on industry demand. But we realise that our narrow thinking has harmed the industry," said N K Aggarwal of Action TESA, one of the large players in a sector dominated by smaller entities. "It will help improve capacity utilisation from the current level of 50-60%," he added. Last year, large parts of the industry, estimated to have at least 5,000 players, were not ready, but now registrations with the Bureau of Indian Standards have been completed by most players, said Rajesh Agarwal of Suryodaya Industries from Bihar.
"Further delays could result in severe consequences, including the erosion of domestic businesses, loss of employment, and reduced demand for local raw materials," said Ajay Garg, managing director at E3 Group.
From plywood to door hinges and from footwear to furniture, ceiling fans, tyres, copper and steel products, there are over 200 items on which govt agencies have decided to impose QCO, which are nothing but standards to ensure that goods are of international quality, both produced domestically as well as abroad.
In several cases, like plywood, the domestic industry has itself protested the move and also pointed to gaps in standards, resulting in delayed implementation. There have been protests from Indian retailers when it comes to footwear, but domestic producers are backing the policy, targeted at improving quality and checking sub-par products from China entering the market.
Typically, importers are the ones who complain as their business is affected or they are forced to realign their supply chain. Besides, it has spurred investment. For instance, door hinges have seen investments of Rs 5,000-6,000 crore. Similarly, QCO on cold rolled grain oriented electrical steel (CRGO) is seen to have prompted JSW and JFE Steel to announce a joint venture in the country.
Govt has refused to bow down to pressure, arguing that Indian consumers also deserve quality products and standards are prescribed across countries and are not unique to India.
[The Times of India]
