Quality as nation-building: The wood panel industry’s new chapter

One year ago, India’s plywood and panel industry crossed an inflection point. The implementation of mandatory Quality Control Orders (QCOs) marked not merely a regulatory reform, but the beginning of a structural transformation in a sector that has quietly supported India’s housing, infrastructure and interior economy for over a century.

The Indian plywood and panel industry has historically been fragmented. Nearly 80 per cent of the sector comprises MSMEs, while large organized players account for only a small portion of production capacity. This fragmentation, though entrepreneurial in spirit, led to wide variations in product quality. In the absence of mandatory standards, a significant number of units operated without uniform benchmarks, resulting in inconsistent output, safety risks, and market distortions.

For consumers, this meant uncertainty. For carpenters, it often meant rework and reputational damage. For compliant manufacturers, it meant unfair competition from substandard products.

The Government’s decision to mandate QCOs-requiring strict adherence to BIS-certified safety and quality standards-has begun correcting this long-standing imbalance.

From Fragmentation to Formalisation

The completion of the first year of mandatory QCO implementation offers early but compelling evidence of impact.

Production has increased by nearly 15 per cent. Investment sentiment has improved. Most notably, the number of domestic units granted BIS licenses has surged from around 800 prior to QCO enforcement to over 2,400 today. This dramatic expansion in compliance reflects not contraction, but formalisation.

An industry once perceived as largely unorganized is steadily transitioning into a structured manufacturing ecosystem aligned with national quality benchmarks. This formalisation not only enhances product reliability but also strengthens tax compliance and transparency-benefiting the broader economy.

Import substitution has further supported domestic manufacturing. As compliance standards rose, low-grade imports found it difficult to compete. Domestic players have expanded capacity under a standardized regime, reinforcing the vision of Atmanirbhar Bharat in this segment.

Quality Without Burdening Consumers

Regulatory reform often raises fears of price escalation. However, the plywood and panel industry presents a counter-example.

Despite higher compliance costs and investments in testing and certification, consumer prices have remained stable. In fact, prices of MDF and particle board have declined by 10-12 per cent. Economies of scale arising from higher domestic production and improved efficiencies have allowed manufacturers to absorb input pressures.

The reform has thus improved quality without imposing additional financial burden on Indian households-a rare and welcome outcome in industrial policy transitions.

Restoring Trust in India’s Vishwakarmas

Perhaps the most underappreciated dimension of this reform lies in its impact on skilled artisans.

Contrary to common perception, more than 90 per cent of plywood and panel products in India are not consumed by large furniture factories. They reach homes through dealers and retailers, where they are shaped and installed by millions of carpenters working on-site.

Before QCO enforcement, substandard boards frequently warped, delaminated or failed prematurely, forcing carpenters into repeated repairs. The consumer often blamed workmanship rather than material quality.

By ensuring that only BIS-certified products enter the market, QCOs have strengthened the professional credibility of over one million artisans registered under the PM Vishwakarma Scheme. Quality assurance is now protecting not only consumers but also the dignity of skilled craftsmanship.

A Green Industry with Rural Linkages

The plywood and panel sector is also uniquely positioned at the intersection of manufacturing and agriculture. Nearly 92 per cent of its timber requirements are met through agroforestry plantations. More than one million farmers are engaged in growing timber species integrated with agricultural crops.

As the industry expands under a quality-driven framework, timber demand rises-encouraging greater tree cultivation. This contributes to higher rural incomes and supports the Government’s broader objective of enhancing farmers’ earnings.

Beyond income, the environmental implications are significant. Increased agroforestry supports India’s Nationally Determined Contributions (NDCs), particularly the target of creating an additional carbon sink of 2.5 to 3 billion tonnes of CO? equivalent by 2030. A quality-driven wood panel industry therefore becomes a silent but effective contributor to climate mitigation and green cover expansion.

Inclusive Compliance: Handholding MSMEs

The transition to mandatory standards could have been disruptive for smaller units. However, industry associations such as the Federation of Indian Plywood and Panel Industry (FIPPI) have adopted a proactive handholding approach.

Over the past year, outreach programmes in manufacturing clusters across Mysore, Kerala and Gujarat have helped MSMEs understand compliance pathways. A proposed collaboration with Kannur University to establish a plywood testing laboratory aims to decentralise access to quality infrastructure. By bringing testing facilities closer to production centres, compliance becomes accessible rather than burdensome.

Such partnerships illustrate how regulatory reform, when combined with institutional support, can uplift rather than marginalise smaller enterprises.

Beyond Compliance: Building a Culture of Quality

As the industry enters its second year under QCOs, the focus must shift from enforcement to awareness. Home owners must be educated about the long-term value of choosing BIS-certified products over inferior alternatives. Retailers and dealers must actively promote standardized materials.

The deeper objective is cultural: to embed quality consciousness across the value chain-from farmer to factory, from dealer to carpenter, from artisan to homeowner.

The first year of QCO implementation demonstrates that visionary policy, when designed with clarity and executed with collaboration, can transform an entire ecosystem. Farmers benefit from higher timber demand. MSMEs gain access to formal markets. Artisans regain professional trust. Consumers receive safer, more durable products. The nation advances toward green manufacturing and sustainable growth. Quality, at last, has moved from aspiration to obligation-and from obligation to opportunity.

The author is President, Federation of Indian Plywood and Panel Industry (FIPPI), and Chairman & Managing Director of Greenply Industries Ltd.; views are personal