The pencil slat industry in Kerala, which has thrived for over 60 years, is currently grappling with a severe raw material crisis that threatens its very survival.
The Kerala State Pencil Slat Manufacturers’ Association has raised an urgent alarm, noting that the number of operational units has plummeted from 250 to just 150.
“As an industry that stands alongside traditional sectors like coir and cashew, it currently generates an annual turnover of ₹1,000 crore and supports the livelihoods of more than 70,000 workers, with nearly 90% of the units concentrated in Kollam district,” said association leaders.
The crisis stems from the scarcity of specific softwoods from Vatta (Macaranga peltata) and Ilavu (silk cotton tree). They point out that these species are scientifically the most suitable for pencil production and have made Kerala the primary supplier for national giants like Hindustan Pencils, Camlin, and Doms. However, manufacturers allege that the plywood industry is now aggressively outbidding them for these specific timbers. “While plywood factories can utilise more than 16 different varieties of soft and semi-hardwoods for their production, the pencil slat industry is restricted solely to Vatta and Ilavu, leaving us vulnerable to market competition we cannot sustain,” they said.
In light of recent policy discussions regarding the Kerala Forest Rules 2021, the association has formally requested the government to intervene. They point to a precedent set for the matchbox industry, where the government excluded Pala and Perumaram from the list of timbers permitted for plywood use to ensure the survival of matchstick manufacturers. The association demands a similar protection, insisting that Vatta and Ilavu be removed from the list of over 25 timber categories currently allocated to the plywood sector.
Reclassification sought
Furthermore, the association is seeking a reclassification of their units under the proposed amendments to the Regulation of Sawmill and Other Wood-based Industrial Units. They argue that since the primary machinery used for pencil slats is identical to that used in sawmills and packing case manufacturing, their industry should be integrated into the sawmill category. They also fear that allowing large-scale plywood units to use these specific timbers without a Forest NOC, a privilege originally intended for rubber wood, will lead to the total collapse of the traditional pencil slat sector.
Published – February 04, 2026 07:28 pm IST
