The effects of higher landed costs of imported logs and wood products are now being felt in the domestic trade and on sale prices for domestic timber.
Recent auctions prices paid by millers have increased and average prices per cubic foot ex-depot were as follows:
|Log length||Girth cm||Cu.ft|
|''||91 and up||Rs.1600 plus|
|''||91 and up||Rs.1800 plus|
|''||91 and up||Rs.1900 plus|
Prices for Haldu (Adina cordifolia) and Laurel (Terminalia tomentosa) logs
|3m to 4m Length||Per cubic foot|
|46 to 60 cm. Girth||-|
|61 to 75 cm. Girth||Rs. 300-350|
|76 to 90 cm. Girth||Rs. 400-450|
|above 91 cm. Girth||Rs 550 plus|
Imported plantation teak prices
The demand for teak in India seems insatiable but the continued depreciation of the rupee is pushing up the cost of teak imports. Current prices, C & F Indian ports per cubic metre are shown below.
|US$ per m3|
|Tanzania Teak sawn||350-700|
|Côte d'Ivoire logs||450-750|
|Costa Rica logs||380-650|
|Trinidad and Tobago logs||380-550|
Price variations are based on quality, length of logs and the average girth.
Ex-mill prices for sawnwood
Domestic ex-sawmill prices for air dried sawnwood cut from imported logs. Price per cubic foot is shown below.
|Sawnwood, (Ex-mill) (AD)||Rs. per ft3|
Radiata Pine (AD)
Domestic prices for Myanmar teak processed in India
Slowing demand has resulted in relatively stable price structures.
|Sawnwood (Ex-mill)||Rs. per ft3|
|Myanmar Teak (AD)|
Export Grade F.E.Q.
Plantation Teak A grade
Plantation Teak B grade
Plantation Teak FAS grade
Price variations depend mainly on length and cross section of sawn pieces
Prices for imported sawnwood
Ex-wharehouse prices for imported kiln dry (12% mc.) sawnwood per cu.ft are shown below
|Sawnwood, (Ex-warehouse) (KD)||Rs per ft3|
|Hemlock clear grade||1300-1400|
|Hemlock AB grade||1100-1200|
|Western Red Cedar||1600-1650|
Plywood prices advance once more
Strong demand and the rising costs of resins and logs due to exchange rate fluctuations have resulted in plywood manufacturers raising prices once more.
|Plywood,||Rs per sq.ft|
|Ex-warehouse. (MR Quality)|
Domestic ex-warehouse prices for locally manufactured MR plywood
|Rs per sq.ft|
|5mm Flexible ply||Rs.33.00|
Exports fall but revival expected in second quarter
Exports declined in the first quarter of fiscal 2013 dropping by almost 1.5% year on year to US$72.4 billion.
At the same time imports of gold and silver also were down which helped narrow the trade deficit to a three month low of US$12.2 billion in June 2013, a healthy figure when compared to the high of $20.1 billion in May.
Declining exports are a global phenomena for those countries pursuing export led growth. China, for example, recorded a contraction in exports in June.
Indian exporters are asking the government to arrange an export credit facility as they are now severely hit by high interest rates from commercial banks.
The Indian Industrial Production Index also fell in May which, say analysts surprised many. Weak output numbers were anticipated but no-one expected negative growth.
However, despite the gloomy first half data analysts are optimistic that the export performance will have picked up in the second quarter. All eyes will be on the second quarter trade numbers when they are released.
Imperial tobacco reports on plantation initiatives
Social and Farm Forestry initiatives by Imperial Tobacco Company (ITC) have added more than 17,000 hectares of plantations during 2012-13 and this brought the cumulative area of plantations to around 142,000 hectares.
Planting activities have increased the ‘green cover’ improved raw-material supplies and have generated over 64 million man-days of employment for rural households including poor farmers.
The combined planting of trees and agricultural crops during the early years of the plantation provides for agricultural increased agricultural production.