Introduction to Timber Imports in India
Overview of India’s Timber Import Market
- India is one of the largest importers of timber globally, with a significant demand for various types of timber products.
- The country imports timber from various countries, including Malaysia, Germany, and Tanzania, among others.
- The woodworking industry in India is one of the fastest-growing sectors, with a growing demand for wood and wood products.
India’s Timber Import Data
Timber Import Statistics
- The value of wood imports in India was over 581 billion Indian rupees at the end of fiscal year 2023.
- India imported $2.27B in wood products, becoming the 21st largest importer of wood products.
- The country’s wood exports were valued at over 70 billion Indian rupees in 2019.
Market Players
Top Suppliers of Timber to India
- Top suppliers of timber to India include Malaysia, Germany, Indonesia, Ecuador, and Ukraine.
- These countries supply various types of timber products to meet India’s domestic demand and industrial requirements.
Indian Buyers of Timber
- Leading companies such as At Home Procurement, Cinmar, and Amazon are at the forefront of importing wood products in India.
- These companies play a significant role in the import of wood products, with At Home Procurement being one of the largest importers.
Classification and Regulations
HSN Codes for Timber Imports
- The HSN code for timber imports in India is 4403, which covers various types of wood and wood products.
- Importers need to comply with regulations and classification codes to ensure smooth import of timber products.
Trends and Insights
Steady Demand for Wood Products
- Demand for green sawn timber in Kandla is steady at INR 571 and INR 601 per CFT from timber from South America and Australian pine logs respectively.
- The demand is driven by the timber industry’s need for high-quality wood products.
Shift towards Sustainable Sourcing of Wood
- Growing concerns and pressure from environmental organizations have reduced proposed investments in the timber sector.
- The industry is likely to shift towards sustainable sourcing of wood to address environmental concerns.
Challenges and Opportunities
Challenges Faced by Importers of Wood
- Tree loss in India has been consistent over the last 20 years, with severe damage in the north eastern parts of the country due to the ‘slash and burn’ cultivation approach.
- Importers face challenges in sourcing high-quality timber products while addressing environmental concerns.
Opportunities for Growth in the Timber Import Market
- The demand and growth in the industry is expected to remain unaffected by minor growth inhibitors.
- The industry is likely to continue growing, driven by domestic and international demands for wood and wood products.
Conclusion
Summary of Key Findings
- India’s timber import market is growing, driven by domestic and international demands for wood and wood products.
- The industry faces challenges, but opportunities for growth exist in sustainable sourcing and meeting the growing demand for wood products.