The Federation of Indian Plywood & Panel Industry (FIPPI) plays a critical role in strengthening India’s manufacturing base and enhancing the global competitiveness of the plywood and wood-based panel sector. Through focused trade advocacy, taxation reforms, and international engagement, FIPPI works to create a fair, growth-oriented policy environment that supports sustainable, plantation-based manufacturing.

FIPPI has been actively advocating for the rationalisation of Goods and Services Tax (GST) on plywood and panel products manufactured from farm-grown timber, proposing a reduction from the existing 18% to 5%. The Federation has consistently highlighted that plywood and wood-based panels are environmentally responsible, renewable, and sourced from agroforestry that directly support farmers, rural livelihoods, and agroforestry value chains.

In this context, FIPPI has submitted detailed representations to the Hon’ble Union Ministers, the GST Council, and the Ministry of Environment, Forest & Climate Change (MoEF&CC), seeking:

• Reduction of GST to 5% on Chapter 44 wood products and wooden furniture (HSN 9403)
• Introduction of Reverse Charge Mechanism (RCM) on agroforestry timber purchases under GST, to simplify compliance for farmers and manufacturers

As part of its Union Budget 2026–27 engagement, FIPPI submitted a comprehensive set of fiscal and trade-related recommendations aimed at strengthening the domestic supply chain and boosting competitiveness. Key proposals included:

• Nursery development, research & development, and financial assistance for timber-growing farmers
• Dedicated financial support from NABARD for agroforestry and tree-based farming
• Rationalisation of Basic Customs Duty (BCD) to protect domestic manufacturers while ensuring availability of critical inputs

FIPPI actively engages with the Government to safeguard the domestic plywood and panel industry from unfair trade practices. Through continuous monitoring of trade trends and import policies, FIPPI provides timely inputs to policymakers to ensure a balanced trade framework that supports domestic manufacturing without disrupting supply chains.

To enhance India’s export footprint, FIPPI works closely with export promotion bodies such as CAPEXIL and participates in global wood-panel and forest products forums. The Federation has facilitated international delegations and B2B interactions that have opened new trade pathways for Indian plywood and panel manufacturers.

FIPPI has also engaged with foreign business delegations, including structured interactions with New Zealand’s business delegation, to explore opportunities for collaboration, technology exchange, and bilateral trade in wood-based products.

Recognising the critical role of technical-grade urea in panel manufacturing, FIPPI has submitted policy recommendations to the Ministry of Chemicals & Fertilizers, advocating for:

• A government-directed pricing mechanism for technical-grade urea
• Pricing linked only to variable production costs
• Decentralised supply through public sector fertilizer plants to ensure availability and price stability

Going forward, FIPPI aims to further strengthen its trade and taxation advocacy through robust market research, trade analysis, and data-driven policy engagement. The Federation is committed to promoting ease of doing exports for Indian plywood and wood-based panel manufacturers by addressing procedural barriers, improving market access, and supporting members with actionable trade intelligence.

Through sustained engagement on taxation, trade policy, and international cooperation, FIPPI continues to champion a competitive, sustainable, and export-ready plywood and panel industry aligned with India’s economic and environmental goals.