The Hindu : Kerala / Thiruvananthapuram News : ‘Check cross-border trade in softwood’

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Sunday, Jul 27, 2008
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Kerala - Thiruvananthapuram

‘Check cross-border trade in softwood’

Special Correspondent

Thiruvananthapuram: The Kerala State Match Splints and Veneers Manufacturers’ Association has urged the State government to check illegal smuggling of wood from Kerala to matchbox units in Tamil Nadu.

Addressing a press conference here, association president K.M. Hussain and general secretary Paul P. Thengumpally said the traditional match splint and veneer manufacturing units in the State were pushed into a crisis due to the cross- border trade in at least four species of softwood trees used by the industry.

They said more than 500 of the 1000 units in the State had been forced to close down, following the crisis that threatened the livelihood of at least 25,000 workers, mostly women, and their families. The remaining units functioned only three or four days a week, they added.

Mr. Hussain said agents were exporting softwood to Tamil Nadu as timber, resulting in a huge loss to the government exchequer.

“Local units in the State were facing an acute shortage of raw material while the matchbox industry in Tamil Nadu is thriving on the illegal trade,” he added.

Mr. Paul said the illegal trade had resulted in a loss of Rs.5 crore to the public exchequer in the form of Central Sales Tax.

The association said the match splint and veneer industry in the State would be forced to shut down in two years if the government failed to address the issue.

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