wood & wood products
TRANSCRIPT
Domestic Wood Marketing Structure
• Whether supplied by imported or local timber, the wood marketing system is multi-layered.
• Domestic forest timber is auctioned by state forest departments and purchased by local timber merchants.
• The local merchants also procure plantation timber from local plantation owners/growers.
• The major plywood manufacturers may procure the logs directly, or buy them through timber merchants.
• The timber is transported to major consuming centres in log form by trucks.
• These logs are then sold to smaller traders and wholesalers who maintain stocks.
Market Overview
• India is a rapidly growing import market for wood and wood products, mainly due to severely depleted domestic forest resources and a growing demand for wood products. India’s imports of wood and wood products have grown by 12 percent annually over the last decade
• The strong growth in the Indian economy and a large and growing middle class have resulted in an increasing demand for housing and furniture, and a major expansion in hotel and retail infrastructures; all of which have fuelled the growth in wood imports.
• Market analysts expect that the imports of wood in India will continue to increase at the current growth rate (10-15 percent) in the near future.
Indian Log Production and Imports
• Due to the import tariff structure , the vast majority of wood imports into India are logs .
• The preference for importing logs also stems from the availability of cheap labour and the large number of sawmills that are able to extract a higher percentage of usable timber at very low cost.
• The Indian wood industry, craftsmen, and other wood users are accustomed to teak and other tropical hardwoods. They are perceived to be more resistant to termites, and are able to withstand the hot and humid climate.
Wood Imports
• Teak has been the main hardwood for many years, and is typically used as a benchmark to grade and price other wood species.
• Other imported wood species are tropical woods like garjan, marianti, mahogany, and sapeli; plantation timbers like teak, eucalyptus, poplar; and softwoods like spruce, pine, and fir (SPF).
• India imports small quantities of temperate hardwoods such as ash, maple, cherry, oak, walnut, beech, etc., but mostly as squared logs or in lumber.
Wood Imports … End Uses• The vast majority of Indian wood imports enter in log form, mainly through well-
established importers located in the main port cities.
• The importers may sell the logs directly to a trader at the port, or transport them to major terminal markets for onward sale to local traders/wholesalers.
• These traders/wholesalers may get some logs sawn into lumber or “sleeper form” (blocks of wood).
• Retailers procure the logs from the traders and wholesalers, and have them sawn into lumber or into timber with customized specifications. The retailers then sell the sawn wood to local end users such as furniture manufacturers, housing construction companies, etc, who have the wood cut to their final specifications for ‘on-site’ fabrications.
• Plywood- and other intermediate wood product-manufacturers normally procure their raw material locally from plantation growers and traders and small quantity of imported material from importers and traders. The locally-produced plywood and other products are retailed through wholesalers and retailers in the wood market.
• Furniture manufacturing units also procure their wood and/or processed wood products from wholesalers and retailers, though a handful procure directly from traders. Furniture manufacturers sell directly to the consumers, mainly as customized and/or ‘on-site’ fabrications
INDIA MARKET ACCESS
• Wood and wood products can be imported into India without quantitative restrictions.
• Imports of logs, sawn/sized wood, and saw dust from the Pines species from the United States are prohibited due to phytosanitary reasons.
• Imports of other wood species in log form require an import permit from the Ministry of Agriculture
• Imports of wood logs with bark are allowed based on a phytosanitary certificate issued by the exporting countries’ certifying agency
• These shipments are cleared only after inspection by an Indian plant protection official and fumigation, if required.
• Imports of processed wood products such as plywood, particleboard, veneer, etc., are exempted from these requirements. I
Soft Wood
• Annual consumption of softwoods in India currently stands at approximately 700,000 m3 .
• Most comes from imports from other countries.• Of the total import volume roughly 90-95% is radiata pine (Pinus
radiata). • There are three major reasons why 99% of the total imports are in
log form. • The first reason is there is a lower import duty on logs (9.25%) as
compared to lumber (19%). • The second reason is sawmilling in India is inexpensive (around 25
$/m3 ). • The third important reason is the lack of a strict standard size in
India: manufacturing to the specific, custom requirements of a particular order is the norm.
Rubber Wood
• Rubber wood is an input for many products like plywood, match boxes, furniture etc. The manufacturers of these products are the buyers of rubber wood.
• Primary processing units like saw mills, veneer units, plywood units, match boxes
• Secondary processing units like RSKD, S4S, EGP, Furniture and components
• Other industries (tile, bricks etc.) which use rubber wood as firewood.
Wood Pulp
• The paper industry requires 11 million tonnes of wood and bamboo of which around 75% is met through industry driven agro / social forestry and the rest from the government sources and imports.
• India imported around 3.5 million tonnes of pulp and waste paper worth $1.5 billion in the financial year 2013-14 to meet its raw material requirement.
• Import of pulp and waste paper was reported at 3.3 million tonnes worth $1.3 billion in the previous year.
• Import duty on wood and bamboos currently stands at 9.36% and 36.14% respectively.
Analysis of Imports of wood pulp
• India imported wood pulp worth USD 286,896,335 with total quantity of 395,266,604.
• Chile is the largest supplier of wood pulp accounting for imports worth USD 61,245,347 followed by
• United States and Sweden which exported wood pulp worth USD 52,053,844 and USD 43,581,181 respectively.
• Nhava Sheva Sea accounted for 41.5% of imports followed by
• Vizac Sea and Chennai Sea which account for 9.7% and 9.4% of imports respectively.
• Average price of wood pulp per unit is USD 0.73 and average value per shipment is 103,535
• During the past two years
Analysis of Imports of manufactured wood packaging under HS Code 4413
• India imported manufactured wood packaging worth USD 87,278 under HS Code 4413 with total quantity of 19,413. United States is the only supplier of manufactured wood packaging .
• All shipments were imported at Pune-Talegoan ICD• Average price of manufactured wood packaging per unit is
USD 4.50 and average value per shipment is 5,819• India imported wood packaging worth USD 1,152,722
under HS Code 44189000 with total quantity of 3,261. Canada is the only supplier of wood packaging .
• All shipments were imported at Nhava Sheva Sea• Average price of wood packaging per unit is USD 353.54
and average value per shipment is 39,749
Analysis of Imports of teak wood
• India imported teak wood worth USD 310,586,634 with total quantity of 5,832,629.
• Myanmar is the largest supplier of teak wood accounting for imports worth USD 78,309,050 followed by
• Ecuador and Benin which exported teak wood worth USD 50,499,970 and USD 43,618,106 respectively.
• Mundra accounted for 38.5% of imports followed by • Mangalore Sea and Chennai Sea which account for 24.2%
and 9.8% of imports respectively.• Average price of teak wood per unit is USD 53.25 and
average value per shipment is 34,710• During past two years
Customs Import Duty of teak wood in India
• Customs Import Duty of teak wood under HS Code 44034910• 44034910 : Other: Teak wood in roughDescriptionDuty• Basic Duty5.00• Education Cess2.00• Secondary Hiigher Education Cess1.00• Contravailing Duty (CVD)12.00• Additional Contravailing Duty0.00• Additional Cess0.00• National Calamity Contigent Duty (NCCD)0.00Abatement0.00• Total Duty18.13
Analysis of Imports of rubber wood fingerComplementary rectangular cuts
• India imported rubber wood finger worth USD 719,884 with total quantity of 20,798.
• Vietnam is the largest supplier of rubber wood finger accounting for imports worth USD 598,220 followed by
• Malaysia and Indonesia which exported rubber wood finger worth USD 104,538 and USD 11,408 respectively.
• Chennai Sea accounted for 33.7% of imports followed by • Kolkata Sea and Nhava Sheva Sea which account for 20.5%
and 18% of imports respectively.• Average price of rubber wood finger per unit is USD 34.61
and average value per shipment is 4,044• During the past two years
Analysis of Imports of country wood
• India imported country wood worth USD 6,711,207 with total quantity of 654,389.
• China is the largest supplier of country wood accounting for imports worth USD 3,277,711 followed by
• Italy and Indonesia which exported country wood worth USD 1,828,092 and USD 701,635 respectively.
• Chennai Sea accounted for 63.9% of imports followed by • Bangalore and Nhava Sheva Sea which account for 25.7%
and 8.8% of imports respectively.• Average price of country wood per unit is USD 10.26 and
average value per shipment is 858
Analysis of Imports of teak wood furniture under HS Code 94016900
• India imported teak wood furniture worth USD 5,498 under HS Code 94016900 with total quantity of 106.
• Indonesia is the largest supplier of teak wood furniture accounting for imports worth USD 4,468 followed by
• Sri Lanka which exported teak wood furniture worth USD 1,030.
• Cochin Sea accounted for 68.8% of imports followed by• Tuticorin Sea and Chennai Sea which account for
18.7% and 12.4% of imports respectively.• Average price of teak wood furniture per unit is USD
51.87 and average value per shipment is 275
India's wood imports show impressive growth rates!
• The growth in softwood log imports in India is impressive, at least 80% of India's log imports are hardwood.
• Teak logs are imported from Myanmar, various African countries, and Central and South America
• Prices for larger, older teak from Myanmar command much higher prices.
• For Malaysia in particular, India has become a very important log market.
Importers & Contacts
• GILL TIMBERSMaharashtra office: 886, Parshwanath Street, Sangamner, Maharashtra.24 x 7 Mobile: +(91) 8888201002 | | E-mail: [email protected]
• RADHAKRISHNA TIMBERS/LENA TRADERSS.NO:24, Plot 1&2, Madurai Main RoadKaraikudi - 630 307 http://www.rktimbers.in/home.htm
• Timber Importers Association of India C/o Berar Timber Industries Pvt Ltd Regency Wood Products E.S. Patanwala Marg, Ghorupdeo Reay Road, Mumbai 400 033
• President Indian Institute of Architects 5th Floor, Prospect Chambers Annexe Dr D.N. Road, Fort Mumbai 400 001
Contacts
• Timber Importers Association India Ltd. E.S. Patanwala Marg, Ghorupdeo, Reay Road Mumbai, India 400 033
• Federation of Indian Plywood and Panel Industry 12/22, First Floor, East Patel Nagar New Delhi, India 110 008
• All India Veneers Manufacturers Association Krishna 710, 224 AJC Bose Road Kolkatta, India 700 017
• Federation of Indian Plywood and Panel Industries 404, Vikrant Tower, 4, Rajendra Place, New Delhi, 110008
• Directorate of Plant Protection, Quarantine & Storage Department of Agriculture and Cooperation Ministry of Agriculture, Government of India (GOI) NH – IV, Faridabad, India 121 001 Email: [email protected]: http://www.plantquarantineindia.org
• Ministry of Environment & Forests (GOI)Paryavaran Bhawan, CGO Complex Lodhi Road, New Delhi, India 110 003 Email: [email protected]: http://envfor.nic.in
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