India to double forested land area in next 10 years

  • July 08, 2010
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 4532
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The draft “Green India Mission” recently published by the Ministry of Environment and Forests, envisages doubling afforestation and eco-restoration efforts over the next 10 years. This mammoth effort is expected to cost Rs.440 billion over the next decade involving some 10 million hectares of land across the country.
The mission targets all types of forests, grasslands and scrub, mangroves, urban forest land as well as degraded agricultural and fallow land. The mission is expected to reduce greenhouse gas emissions about 6%.

Industrial growth surge
In April 2010, Indian Industrial Production surged 17.6% over the level in April 2009. The growth is close to a record high of 17.7 % chalked up in December 2009. Since October 2009, Industrial Production Index has shown double-digit growth with robust private consumption and investments being the supporting factors. India is targeting an annual 20% growth in industrial production.

Market trends
The South West Monsoon season has started, causing a break in housing activity and easing domestic demand for wood products. Plywood market seems to have settled down after the recent price increase imposed by domestic plywood manufacturers. However, a shortage of raw material and labour reportedly continues to hamper plywood production.

Hardwood auctions
Auctions of teak continued to attract active buying in the Central India log depots with US$38-57 per cu.m higher prices than in previous auctions. Sawing quality teak logs 3 metres and up fetched around US$1359 per cu.m, medium quality US$1133 per cu.m and logs between 2 and 3 metres long were priced at around US$906 per cu.m.
The hardwoods including haldu (Adina cordifolia) and kalam (Mitragyna parviflora) were the main non-teak species traded with prices around US$227 per cu.m for small dimension logs. Demand for South East Asian logs was brisk and the most popular species were balau, kapur, meranti, merbau and rengas.

India CNF Plantation Teak

US$ per m3
Sudan sawn
710-760
Ivory Coast logs
500-550
PNG logs
450-500
El-salvador logs
375-400
Guatemala logs
375-400
Ghana logs
425-450
Benin logs
425-450
Brazil squares
450-475
Togo logs
325-350
Ecuador logs
275-300
Costa Rica logs
375-400
Panama logs
300-325

India Sawnwood Prices (domestic)
Sawnwood (Ex-mill)
Rs. per ft3
Myanmar Teak (AD)

Export Grade F.E.Q.
5000-5500
Plantation Teak A grade
2000-3400
Plantation Teak B grade
1800-2800
Plantation Teak C grade
1350-1500

India Sawnwood Prices (imports)
Sawnwood, (Ex-mill) (AD)
Rs. per ft3
Merbau
1300
Balau
1050
Kapur
900
Red Meranti
600
Bilinga
650
Radiata Pine (AD)
325-350
Sawnwood, (Ex-warehouse) (KD)
Rs per ft3
Beechwood
1100
Sycamore
1150
Oakwood
1200
American Walnut
2000
Hemlock clear grade
1050
Hemlock AB grade
900
Western Red Cedar
1250

India Plywood Prices
Plywood, (Ex-warehouse)
Rs per ft²
4 mm
26.5
6 mm
35.0
12 mm
51.0
15 mm
61.0
18 mm
74.0

Locally Manufactured
Plywood “Commercial
Grade”
Rs per sq.ft

Rubberwood
Hardwood
4mm
Rs.9.50 Rs.16.50
6mm
Rs.14.00 Rs.24.00
8mm
Rs.17.50 Rs.27.00
12mm
Rs.21.50 Rs.29.00
18mm
RS.27.00 Rs.39.00
5mm Flexible ply Rs.17.50 Rs.21.00