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Wood & Wood products

Wood & Wood productsM.SundaraRajanwww.primaryinfo.com

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 OverviewIndia 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. Indias 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 ImportsDue 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 ImportsTeak 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 UsesThe 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 fabricationsINDIA 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 AgricultureImports 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 WoodAnnual 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 WoodRubber 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 PulpThe 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 103,535During 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 ICDAverage price of manufactured wood packaging per unit is USD 4.50 and average value per shipment is 5,819India 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 SeaAverage 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 34,710During past two years

Customs Import Duty of teak wood in India

Customs Import Duty of teak wood under HS Code4403491044034910 : Other: Teak wood in roughDescriptionDutyBasic Duty5.00Education Cess2.00Secondary Hiigher Education Cess1.00Contravailing Duty (CVD)12.00Additional Contravailing Duty0.00Additional Cess0.00National Calamity Contigent Duty (NCCD)0.00Abatement0.00Total 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 4,044During 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 bySri 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 pric