Manufacturers in the states of Yamunanagar and Jagadhri have suspended, as of July of this year, the production of plywood. For an indefinite period. The reason for this dramatic move is the imposition of a goods and service tax by those two states.
The majority of plywood manufacturers in India are small scale operations and it is argued by their trade association that as a result of this tax only the large scale operations would survive. The problem that has arisen is that in order to cover the cost of this tax plywood prices have risen and product remains unsold.