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By: Admin 14-Sep-2019 FOWCham

INDIAN FARMERS MUST GROW TREES AND HARVEST TIMBER

Trees play a vital role in the core generation and living of life.  The unmatchable renewable resource, wood is strong, durable, and constantly replenished by nature. Whether used in construction, for furniture, like paper or burned for energy, wood is an essential part of daily life.

The potential of trees to provide this full range of services for humans and ecosystems relies on timber being harvested in a well-managed and sustainable fashion. India imports INR 70,000 crores of Timber and INR 112,000 crores of Timber products every year. Global Timber Export is valued at 435 billion dollars a year. Most Indian farmers are losing out on this huge opportunity to earn income. On this note, here are the top highlights of wood exports in the world:

THE NINE LARGEST WOOD EXPORTING COUNTRIES IN THE WORLD:

1. Canada (31 billion kilograms): In Canada, forest products, primarily wood and wood products, contribute a significant level of the value-added to the country’s economy. $17.1 billion USD are generated annually in export value alone from the country’s forest products. The United States, China, and Japan serve as the largest foreign markets for Canadian wood and wood product exports.

2. USA (19.5 billion kilograms): China, Canada, and Mexico are the top three markets for U.S. forest product exports. A total of 19.5 billion kilograms of processed wood are generated and exported from the country annually.

3. Sweden (18.5 billion kilograms): 18.5 billion kilograms of wood products are processed and exported from the country annually. In 2001, the net export of wood and wood products contributed $10.6 billion USD to the nation’s economy.

4. Finland (16 billion kilograms): Approximately 20% of Finland’s export revenues are generated from the Finnish forestry industry. The industry produces and exports about 16 billion kilograms of processed wood annually and, in 2013, the Finnish forest industry’s production was worth 20.7 billion Euros.

5. Germany (14.5 billion kilograms): 14.5 billion kilograms of wood products are processed and exported from the country annually, with approximately 30% of Germany's sawn timber being exported to foreign markets.

6. Russia (14 billion kilograms): The Russian Federation's timber exports grew by 7.9% in 2014, fueled in large by increasing demand for its wood products in Asian countries. China, the largest importer of Russian timber, increased its volume of orders by 17.6% in 2014.

7. Brazil (11 billion kilograms): The country has the third-largest forest reserves in the world, and the highest biodiversity in terms of both flora and fauna. 11 billion kilograms of wood is processed and from the country annually.

8. Austria (7 billion kilograms): The timber export industry is very well developed between Austria and other EU countries, with Italy and Germany being the primary foreign customers for Austria’s timber products. There has also been a rise in the demand for Austrian wood products in the Americas and Asian countries as well in recent years. Around 7 billion kilograms of wood products are processed and exported from the country annually.

9. Chile (6 billion kilograms): Chile has extensive forests, and these occupy over 20.7% of the country’s total land area. Most Chilean wood products today are being exported as lumber, logs, and chips. In 2000, the forestry sector of Chile generated exports of $1.89 billion. Annually, 6 billion kilograms of wood is processed in Chile as sawed timber, pulp, and paper

WOOD IMPORTERS IN THE WORLD:

 Top three largest wood importing countries in the world are:

China: China is counted as one of the largest wood exporters in the world. According to Wood trade data, China is also the largest wood importer country in the world. It recorded a value of USD 19627360 thousand from wood imports during the year 2016. China is importing most the wood articles and wood charcoal under HS code 4407 (Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed) and HS code 4403 (Wood in the rough, whether or not stripped of bark or sapwood).

 

USA: United States of America recorded wood import value of USD 19537912 thousand in 2016. Canada, China, Brazil are its top wood exporters while the USA has imported 51% of its wood article & wood charcoal from Canada only.

 

Japan: Japan stood as third largest in the list of wood importing countries. It registered USD 10153718 thousand from wood imports which represent 7.8% of world wood imports

 

DIFFERENT TYPES OF WOOD AND THEIR COST IN INTERNATIONAL MARKET.

Wood is broadly categorized into two parts – Softwood and Hardwood

Softwood: - Pine, Cedar, Fir, Spruce, Hemlock.   

Hardwood: - Teakwood, Rosewood, Oak, Maple, Ash, Mango, Mahogany, Beech, Cherry, Walnut.

WORLD’S MOST EXPENSIVE WOOD IN THE WORLD.

African Blackwood – $ 10,000 Per Kilogram.

Agar Wood – $ 10,000 Per Kilogram.

Ebony – $ 10,000 Per Kilogram.

Sandalwood – $ 20,000 Per Kilogram.

Pink Ivory – $ 7-8 Per Board Feet.

Lignum Vitae – $ 5 Per Pound.

Purple Heart – $ 11.99 Per Board Feet.

Dalbergia – $ 14-16 Per Board Feet

Bubinga – $ 18.99 Per Board Feet

Bocote – $ 32.99 Per Board Feet

 

India can get a good grip on wood exports.  At present, the Indian wood & furniture sector is in the hands of unorganized small units. Fortunately, large corporate houses have started taking an interest in the production of modern furniture. The furniture market is the second-largest wood processing segment after timber & logs, making India a fast-developing market for high-end, value-added imported products. The manufacture of prefabricated doors and windows is relatively new and the current market is growing at 10% per annum. The total annual market for timber & furniture in India is estimated to be US$ 1.25 billion about 90% of which is for wooden products. The branded (higher quality) wooden furniture industry is growing at 15% annually.

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Federation of Worldwide Chambers of Exporters and Importers