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May 11, 2021

Indian timber industry in crisis: liquidity crunch, fears of production suspension due to Covid-19 situation

India's biggest timber cluster at Kandla is staring at a dark future, with fears of production suspension, leaving workers in big numbers in the last two months due to the Covid-19 situation.

Indian wood products manufacturers fear suspension of production activity if the severe liquidity crunch caused by the disrupted payment cycle continues through May. The timber units in Kandla are presently working at 50% capacity.

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