Chipboard industry is basically agriculture based and a major input for Furniture Industry. Chipboard is made up of wood chips bound together with resin and pressed into a flat, rectangular shape. Pieces of wood which are too small, warped or otherwise defective for use as lumber are splintered into small chips, and mixed with sawdust. A synthetic resin is added, usually urea formaldehyde, to hold the chips together and increase the strength and hardness of the finished product. The mixture is then heat-formed under pressure to create a smooth, rigid board. Mango & Poplar wood is raw material used for its production. Chipboard is made by gluing layers and fragments of recycled paper together to form a larger piece of material. The adhesive is applied using heat and pressure. This insures the material becomes rigid and feels smooth to the touch. The thickness of the chipboard ranges from very thin to very thick. Applications: Chipboard and plywood are the major inputs for the furniture industry, which is the biggest user of chipboard, accounts for approx. 60% of the total demand for the product. The wood used in furniture making generally comprises Shesham, Chirh, Pine, Oak, Burmah, Teak, Plywood, Kikar and Bamboos. Recently, chipboard is also extensively used for this purpose, which is considered a healthy sign for the chipboard industry. Although the quality of chipboard so far produced in the country has not improved up to the world standard, yet with the passage of time for product’s diversified uses, easy to handle, economical and many other factors, the use of chipboard is likely to increase. Market Scenario: Chipboard is inexpensive and relatively easy to produce and use. This industry has reasonable potential to attract new markets abroad by providing high quality board. Banking policies for housing loans are also playing an important role in the boost of the housing sector. The construction style has absolutely changed and demand of chipboard and laminated board has significantly increased. Chip board is not only used in country but also exported to Sri Lanka, Afghanistan, Saudi Arabia & to Gulf States in form of furniture. Due to increase in population and need of constructing new houses it is expected that demand for chipboard will rise ultimately.