Forestry in India - Economics

Economics

Significant forest products of India include paper, plywood, sawnwood, timber, poles, pulp and matchwood, fuelwood, sal seeds, tendu leaves, gums and resins, cane and rattan, bamboo, grass and fodder, drugs, spices and condiments, herbs, cosmetics, tannins and other non-wood forest products.

India is a significant importer of forest products. Logs account for 67 percent of all wood and wood products imported into India due to local preference for unprocessed wood. This preference is explained by the availability of inexpensive labor and the large number of productive sawmills. In trade year 2008-2009, India imported logs worth $1.14 billion, an increase of about 70% in just 4 years.

Indian market for unprocessed wood is mostly fulfilled with imports from Malaysia, Myanmar, Côte d'Ivoire, China and New Zealand.

India is growing market for partially finished and ready-to-assemble furniture. China and Malaysia account for 60 percent of this imported furniture market in India followed by Italy, Germany, Singapore, Sri Lanka, the United States, Hong Kong, and Taiwan.

The Indian market is accustomed to teak and other hardwoods that are perceived to be more resistant to termites, decay and are able to withstand the tropical climate. Teak wood is typically seen as a benchmark with respect to grade and prices of other wood species. Major imported wood species are tropical woods such as mahogany, garjan, marianti, and sapeli. Plantation timber includes teak, eucalyptus, and poplar, as well as spruce, pine, and fir. India imports small quantities of temperate hardwoods such as ash, maple, cherry, oak, walnut, beech, etc. as squared logs or as lumber. India is the world's third largest hardwood log importer.

In 2009, India imported 332 million cubic meters of roundwood mostly for fuel wood application, 17.3 million cubic meters of sawnwood and wood-based panels, 7.6 million metric tonnes of paper and paperboard and about 4.5 million metric tonnes of wood and fiber pulp.