India: Hardwood log market trends February 06, 2010
During the first week of January 2010, approximately
1500 cu.m of Teak logs were put up for auction in Gujarat,
Western India. The upward movement in prices seen in
two earlier auctions, continued in the last round of
auctions.
Good quality, long length Teak logs over 4ft girth have
fetched as much as Rs. 2200 - 2300 per cubic foot.
Medium quality logs have sold at Rs.1500 - 1600 and
smaller girth logs fetched around Rs.1200 per cubic foot.
Good logs from Indian forests are very much in demand as
the quality is considered better than currently available
imported logs.
Adina and Laurel logs have fetched from Rs.325 - 400 per
cubic foot and mixed hardwood lots Rs.200 - 125,
depending upon size and quality.
Prices in auction sales in government timber depots of
Central India have also seen a rise of 15 to 20% over last
year’s level, notably for Teak, Laurel, Adina and
Pterocarpus logs.
Further auctions are expected next month with good
quantities and quality of logs. The big gap between the
demand and supply continues and prices are expected to
remain firm.
Teak imports
Shipments of imported Teak logs into India have changed
from the previous bulk shipments to containerised cargo.
Traders report that the quality of Teak supplies continues
to be good from Costa Rica and Benin. From other sources
the quality tends to be low and variable as it seems most
logs are of thinnings. Imported Teak prices remain
unchanged.
Industrial growth at two 2 year high
For 2009 the Index of Industrial Production (IIP) stood at
a two year high of 11.7% primarily due to improved
growth in consumption of durables and capital goods.
Analysts are of the opinion that the Indian economy is on a
growth path as investments as well as private consumption
are recovering.
Sandalwood theft
Mr.Binoy Viswam, the Forest Minister of Kerala has
claimed that they have succeeded in containing
sandalwood thefts from the natural forests by
implementing stringent protection measures.
The number of cases of individual tree thefts fell from
2660 in 2004 to 41 trees as of December 2009. To further
strengthen protection measures a trained dog squad will be
deployed.
In Marayoor, Kerala, there is a sandalwood seed orchard
where good seed bearers are located. The entire area is
fenced with wire mesh. Dogs operate in support of
security guards to prevent theft. To further secure the
species local people living in and around these forests are
encouraged by government to plant at least five
sandalwood trees per family to boost the population of this
endangered specie.
The local population is apparently enthusiastic about
planting these trees as good returns can be obtained.
Currently prices for Sandalwood can be as high as
Rs.9000 per kilo.
Another three states of southern India; Karnataka,
Tamilnadu and Andhra Pradesh are also very active in this
field as they also have excellent quality native
Sandalwood in their forests.
