India: Call for lower import duties
A submission to the ministry of finance by the timber
sector for changes in import duty levels in the next
national budget has been made. A reduction in the
maximum duty from 10% to 7.5% will help lower
production costs and thus make exports more competitive
says the industry.
Such a reduction would also help the government meet its
commitment to align import duties to Asean levels, say
analysts. The Indian government has progressively
reduced the import duties over the past decade and the
eyes of the timber industry are on the 26th February
deadline for the budget announcements.
Jatropha plantations
Indian Oil Co. is looking to acquire 50,000 hectares of wasteland in various Indian states. They have reportedly already acquired 30,000 ha. in Chhatisgarh and another 2,000 ha. in Madhya Pradesh. The company is seeking more land in Uttar Pradesh for planting Jatropha. Jatropha is resistant to drought and most pests and produces seeds containing 27-40% oil. After oil extraction the residue could also be considered for energy production.
Jatropha curcas oil has potential for biofuel production. Government policy may involve financial incentives for forest plantations as they will help the country meet its carbon emission mitigation targets absorb carbon, extend green cover and provide a bio-fuel option.
Interest in rubber plantations
With natural rubber prices having doubled in a year, from Rs65 per kg last year to Rs128 per kg today, rubber plantations will also get a boost. Besides rubber, the trees, once latex yields fall to uneconomic levels, provide log raw materials for the wood based industries.
India’s trade statistics
India’s log imports for fiscal 2008-9 are reported by CAPEXIL at 3,875,300 cubic metres as against 3,931,400 cubic metres during 2007-8. Value-wise 2008-9 imports were Rs. 51, 264 million as against Rs. 47,124 million for 2007-8 a rise of almost 9% despite the economic downturn. Imports of sawn timber have seen a steep rise from Rs. 1,025 million in 2007-8 to Rs. 1,449 million for 2008-9.
On the export front there has been a sharp increase (86 %) in shipments of sawn timber and a 29 % rise in exports of other articles of wood. These increases have helped offset the declines in exports of plywood and wooden furniture. CAPEXIL, a non-profit making organization, was setup in March 1958 by the Ministry of Commerce, Government of India to promote export of chemical and allied products from India. And since then has been the voice of Indian business community.
Total exports of wood and wooden products rose marginally by 2.5 % during 2008-9 and stood at Rs. 20, 118 million as against Rs. 19, 620 million for 2007-8. Exports of wooden furniture, mainly antique reproduction styles are not covered by Capexil but other sources indicate exports in 2008-9 of around Rs. 8, 000 million.
India
India
Sawnwood
Prices
(domestic)
India Sawnwood Prices (imports)
India Plywood Prices
Jatropha plantations
Indian Oil Co. is looking to acquire 50,000 hectares of wasteland in various Indian states. They have reportedly already acquired 30,000 ha. in Chhatisgarh and another 2,000 ha. in Madhya Pradesh. The company is seeking more land in Uttar Pradesh for planting Jatropha. Jatropha is resistant to drought and most pests and produces seeds containing 27-40% oil. After oil extraction the residue could also be considered for energy production.
Jatropha curcas oil has potential for biofuel production. Government policy may involve financial incentives for forest plantations as they will help the country meet its carbon emission mitigation targets absorb carbon, extend green cover and provide a bio-fuel option.
Interest in rubber plantations
With natural rubber prices having doubled in a year, from Rs65 per kg last year to Rs128 per kg today, rubber plantations will also get a boost. Besides rubber, the trees, once latex yields fall to uneconomic levels, provide log raw materials for the wood based industries.
India’s trade statistics
India’s log imports for fiscal 2008-9 are reported by CAPEXIL at 3,875,300 cubic metres as against 3,931,400 cubic metres during 2007-8. Value-wise 2008-9 imports were Rs. 51, 264 million as against Rs. 47,124 million for 2007-8 a rise of almost 9% despite the economic downturn. Imports of sawn timber have seen a steep rise from Rs. 1,025 million in 2007-8 to Rs. 1,449 million for 2008-9.
On the export front there has been a sharp increase (86 %) in shipments of sawn timber and a 29 % rise in exports of other articles of wood. These increases have helped offset the declines in exports of plywood and wooden furniture. CAPEXIL, a non-profit making organization, was setup in March 1958 by the Ministry of Commerce, Government of India to promote export of chemical and allied products from India. And since then has been the voice of Indian business community.
Total exports of wood and wooden products rose marginally by 2.5 % during 2008-9 and stood at Rs. 20, 118 million as against Rs. 19, 620 million for 2007-8. Exports of wooden furniture, mainly antique reproduction styles are not covered by Capexil but other sources indicate exports in 2008-9 of around Rs. 8, 000 million.
| Sawnwood
(Ex-mill) |
Rs.
per
ft3 |
| Myanmar Teak (AD) |
|
|
Export Grade F.E.Q.
|
5000-6000 |
|
Plantation Teak A
grade
|
2000-3600 |
|
Plantation Teak B
grade
|
1800-3000 |
|
Plantation Teak C
grade
|
1250-1500 |
India Sawnwood Prices (imports)
| Sawnwood,
(Ex-mill) (AD) |
Rs.
per
ft3 |
|
Merbau
|
1400 |
|
Balau
|
1150 |
|
Kapur
|
1000 |
|
Red Meranti
|
650 |
|
Bilinga
|
650 |
|
Radiata Pine (AD)
|
375-400 |
| Sawnwood,
(Ex-warehouse)
(KD) |
Rs
per ft3 |
|
Beechwood
|
1200 |
|
Sycamore
|
1250 |
|
Oakwood
|
1300 |
|
American Walnut
|
2250 |
|
Hemlock clear
grade
|
950 |
|
Hemlock AB grade
|
800 |
|
Western Red Cedar
|
1250 |
India Plywood Prices
| Plywood,
(Ex-warehouse) |
Rs
per ft² |
| 4 mm |
21.0 |
| 6 mm |
30.5 |
| 12 mm |
44.0 |
| 15 mm |
53.0 |
| 18 mm |
64.0 |
| Locally Manufactured Plywood “Commercial Grade” |
Rs per sq.ft | |
| Rubberwood |
Hardwood |
|
| 6mm |
Rs.12.00 |
- |
| 8mm |
Rs.15.00 |
Rs.24.0 ⇑ |
| 12mm |
Rs.18.50 |
Rs.25.5 ⇑ |
| 18mm |
RS.23.00 |
Rs.34.0 ⇑ |
| 5mm |
Flexible ply Rs.15.0 ⇑ |
|