Furniture industry pitches for national plantation strategy for availability of raw material

The domestic furniture industry is facing challenges related to the availability of raw material, which can be addressed by a national plantation strategy, industry leaders said. Besides, there are issues related to availability of skilled workers, import of finished products under free trade agreements and supply chain problems, they said at a webinar on the 'Future of Furniture Industry', organised by industry chamber FICCI.

The domestic furniture industry is facing challenges related to the availability of raw material, which can be addressed by a national plantation strategy, industry leaders said. Besides, there are issues related to the availability of skilled workers, import of finished products under free trade agreements, and supply chain problems, they said at a webinar on the 'Future of Furniture Industry', organized by industry chamber FICCI. Fabindia Chairman William Bissell said a national plantation strategy can ensure an uninterrupted supply of certified woods. Well-managed plantation will benefit both businesses and farmers, he added. "Our raw materials have become much more expensive than China. However, India has a distinct advantage and this is the craftsmanship of the local artisan," Bissell emphasized.

Alex Bellos, president of US-based furniture brand West Elm, said it has faced problems in sourcing quality certified woods in India unlike China, where a lot of varieties are available. Andreas Hettich, chairman of the advisory board, Hettich Group, said the regulatory environment has to be stable for the industry to thrive.

"Building a furniture cluster is an investment for decades, not even just for years. It is a very long-term investment and therefore there has to be a stable environment, very good and reliable regulations and easy access to other markets...," he said. Speaking about the domestic market, Hettich said, "It is a huge and fast-growing market and not yet a well-developed market so it is probably one of the most diverse markets in the world and dependent on micro-companies and micro dealers. So, there is a lot of room for development." However, he also pointed out issues faced by the industry, including the availability of skilled force and speed of the supply chain. Department for Promotion of Industry and Internal Trade (DPIIT) Joint Secretary Anil Agarwal said the government has identified four places to set up furniture clusters. It would be similar to what was done for the leather industry.

"The furniture sector is one of the champion sectors for the government and to help, it would formulate policy and implement them," said Agarwal. He also assured the industry that the government will look into issues raised by it, including standardization of woods and import of finished goods under free trade agreements.

"Government is open to putting them under non-tariff measures in compliance under the WTO regulatory framework," he added. IKEA India CEO Peter Betzel said the company has big plans for India from a retail perspective. On manufacturing, he said the industry needs a good trade policy before it asks its partner companies to come and invest here.

"We need local forestry which needs to be certified," Betzel said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)