Approximately 50,000 cubic metres of teak logs are sold annually through auctions in the State of Kerala. The state has a wide network of timber depots where auctions are regularly held.
TeakNet and its Coordinator Dr. M.Sivaramhave reported the latest teak price trends. When compared with prices in 2005 and 2009 the current upswing in prices is rather severe as illustrated in the table below.
Prices for plantation grown teak logs from Kerala are shown below. Prices are per cubic metre Ex-depot.
|Teak I B||45,500||128,940||193,500|
|Teak I C||39,000||75,244||157,500|
|Teak II A||46,000||85,800||117,500|
|Teak II B||40,000||93,046||115,100|
|Teak II C||31,000||53,667||90,000|
|Teak III A||34,500||72,905||77,598|
|Teak III B||29,000||58,644||82,433|
|Teak III C||21,500||41,819||62,236|
Prices for imported plantation teak
Fluctuations in Indian rupee continue but the level of plantation teak imports continues unchanged a reflection of the firm demand in the country. Plantation teak prices are shown in the following table.
|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.
Domestic ex-sawmill prices for air dried sawnwood cut from imported logs. Price per cubic foot is shown below.
Ex-mill prices for sawnwood
|Sawnwood, (Ex-mill) (AD)||Rs. per ft3|
Radiata Pine (AD)
Slowing demand continues to hold down price structures.
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|
Price variations depend mainly on length and cross section.
Domestic demand for plywood continues to grow.
|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|
Indian companies eye overseas plantation resources
Ensuring adequate and uninterrupted supplies of raw materials at reasonable cost has become the key focus for all wood based industries in India.
As the number of enterprises increases and as others increase capacity the problem of raw material supply increases. Companies are realising that the best solution is to have their own plantations.
Several Indian companies have sought to invest in Malaysia, Myanmar and Vietnam and have plantations and manufacturing capacity in those countries.
Taking up the challenge is India’s JK Paper Mills which, reports suggest, is discussing large scale plantation development with the Government of Myanmar.
The company is also considering establishing a paper mill with a 70,000 tonne annual capacity. The total investment is said to be worth around US$ 30 million.
At its home base in India, JK Paper Mills has extended its activities and in August its new plant at Raygada in Odisha will start production (pulp mill capacity of 215,000 t/yr and paper capacity about 150,000 t/yr).
This will lift the paper production capacity from the present 290,000 to 450,000 tonnes a year. The company’s total wood requirement last year was 474,000 tonnes with 35-40 per cent coming from its own plantations.
Because of the additional production capacity the company will have to source a further 200,000 tonnes of raw material. It is noteworthy that over the past year the cost of domestic pulp wood increased 35%.
Revised ‘Affordable Housing in Partnership’ scheme
When addressing REALTY 2013, the Confederation of Indian Industry (CII) conference on real estate on August 2, Dr Girija Vyas, Union Minister of Housing and Urban Poverty Alleviation said the aim of the soon to be revised ‘Affordable Housing in Partnership’ (AHP) scheme is to provide half a million houses to economically weaker and lower income groups.
Through this scheme, the government intends to encourage partnerships between various agencies such as the central and state government housing boards, development authorities, local urban bodies and industry for creation of affordable housing.
The scheme will provide several supply side as well as demand side incentives such as concessions on development charges, service tax and direct tax exemptions, encouragement to foreign investment in affordable housing and reduced stamp duties.
Business confidence slips in June
Indian companies became more pessimistic about the economy in the second quarter as the business confidence index dropped slightly from levels in the first quarter.
The main factors negatively affecting industry were stated as weak domestic and international demand, the weakening rupee, the high cost of credit, rising prices for raw materials and wage increase pressures.
“The current situation calls for urgent policy initiatives both by the Reserve Bank of India and the central government to rescue Indian industry from further deterioration as it may significantly impact employment and consumer demand,” said a spokesperson from the Associated Chambers of Commerce and Industry.