Forest product and trade

Forest product and trade

1. FOREST PRODUCTS AND
TRADE

2. OUT LINE
Introduction
Forestry sector in India
Trading of timber products
Global scenario on timber products
Production & consumption pattern
of timber in India
Import of timber
Trade Policy Mechanism
Export of timber
Uruguay Round
Trends and Projections

3. Trading of NWFP
Global scenario NWFP products
RAJASTHAN scenario
Supply Chain of NWFP Products
Trade organizations
To meet out challenges

4. To meet out the
demand of Forest
Produce we should
know the current
trend & projection

5. Introduction
- The forest products sector is
estimated to contribute about 1.2
percent of world GDP and
approximately 3 percent of
international merchandise trade.
- Industry annual turnover exceeds
US$200 billion for four product
categories: round wood and sawn
wood, panels, pulp, and paper.
- The forest products industry is
Employing over 13 million people in
nearly 200 nations .

6. The rapid growth of Indian
population , The societal
demands on forests are
becoming more diversified.
The widening gap between
demand & supply is main
cause of forest degradation
and loss of forest
biodiversity.

7. Recommended allocation of fund to
Forestry
8 th Plan- Dr. M.S.Swaminathan
committee - recommended
allocation of Rs.9,950 crores
9 th plan- A.K. Mukerji committee
-Recommended allocation of
Rs.26,752 crores for ensuring
covering 33% area in 20 years.
10 th plan - The National Forestry
Action Plan [NFAP] Proposed Rs
27,256 crores A.K. Mukerji (2006)

8. Plan Period Total public sector ( crores ) Out
lay for forests and wild life ( crores ) % of plan
out lay First 1951-56 2069 7.64 0.37 Second
1956-61 4800 21.21 0.44 third 1961-66 7500
45.85 0.61 Post third 1966-69 6687 41.93 0.63
Fourth 1969-74 15901 89.42 0.56 Fifth 1974-79
38853 208.84 0.53 Annual 1979-80 12550
68.33 0.54 Sixth 1980-85 97500 692.49 0.71
Seventh 1985-90 180000 1859.10 1.03 Post
Seventh 1990-92 139197 1413.00 1.01 Eighth
1992-97 434100 4081.87 0.94 Ninth 1997-02
859200 8189.09 0.95
PLAN PERIOD TOTAL PUBLIC
SECTOR
(CRORES)
OUTLAY FOR
FOREST & WILD
LIFE (CRORES)
% OF PLAN
OUTLAY
FIRST 1951-56 2069 7.64 0.37
SECOND 1956-57 4800 21-21 0.44
THIRD 1961-66 7500 45.85 0.61
POST THIRD 1966-69 6687 41.93 0.63
FOURTH 1969-74 15901 89.42 0.56
FIFTH 1974-79 38853 208.84 0.53
ANNUAL 1979-80 12550 68.33 0.54

9. PLAN PERIOD TOTAL PUBLIC
SECTOR
(CRORES)
OUTLAY FOR
FOREST &
WILD LIFE
(CRORES)
% OF PLAN
OUTLAY
SIXTH 1980-85 97500 682.49 0.71
SEVENTH 1985-90 180000 1859.10 1.03
POST SEVENTH1990-92 139197 1413.00 1.01
EIGHTH 1992-97 434100 4081.87 0.94
NINTH 1997-2002 859200 8189.09 0.95

10. CONTRIBUTION OF FORESTRY TO INDIA’S GDP (%)
YEAR CONTRIBUTION TO GDP (%)
1993-94 1.46
1994-95 1.40
1995-96 1.30
1996-97 1.22
1997-98 1.19
1998-99 1.13
1999-00 1.11
2000-01 1.08
2001-02 1.04
2002-03 1.01
2003-04 0.9
2004-05 0.95

11. PLAN OUTLAYS AND EXPENDITURE – TENTH AND ELEVENTH PLA N ( CRORES)FORESTRY
SECTORS- ENVIRONMENT/RIVER CONSERVATION/FORESTRY & WILD
LIFE/NAEB/ANIMAL WELFARE
Xth PLAN- OUTLAY-5945 CRORES
EXPENDITURE 5112.32 CRORES
Xith PLAN- OUT LAY 10005 CRORES
YEAR PLAN OUTLAY EXPENDITURE
2007-8 1351 1350.89
2008-9 1500 1483.02
2009-10 1880 1630.63
2010-11 2200 2179.71
2011-12 2300 415.84

12. SHARE OF AGRICULTURE
SECTOR IN GDP, ECONOMIC
SURVEY 2010-11
AGRICULTURE- 12.13
FISHRIES- 0.80
FORESTRY- 1.50

13. Forest Produce
1-WOOD/TIMBER
BASED
INDUSTRIES
2-NON-WOOD/TIMBER
BASED FOREST
PRODUCTS
(NWFP/NTFP)

14. WOOD/TIMBER MATERIAL
FLOW
INDUSTRIAL ROUND WOOD
SAWN WOOD(C)
SAWN WOOD (NC)
PLYWOOD
VENEER SHEETS
OTHER FIBRE PULPZUL
OTHER PAPER AND PAPER
BOARDS
PRINTING AND
WRITING PAPER
NEWS PAPER
FIBRE BOARD
PARTICLE BOARD
WOOD PULP
FUELWOOD / CHARCOAL

15. Forest Product Suppliers at the global level
45 % - USA, Canada, Sweden and Finland
7 % - China
4 % - Russian Federation
6 % - Brazil
2 to3 % - Indonesia, India and Malaysia
each.

16. MAJOR TROPICAL LOG PRODUCERS
.INDIA -20 MILLION cum.
.INDONESIA -34 MILLION cum.

.BRAZIL -24 MILLION cum.

.MALAYSIA -18 MILLION cum.
. NIGERIA -6.5 MILLION cum.
.OTHERS - 37 MILLION cum.

17. MAJOR TROPICAL LOG CONSUMERS
.INDIA -24 MILLION cum.
.INDONESIA -34 MILLION cum.

.BRAZIL -25 MILLION cum.

.MALAYSIA -16 MILLION cum.
. CHINA -12 MILLION cum.
.OTHERS - 35 MILLION cum.

18. MAJOR TROPICAL LOG IMPORTERS
.INDIA -3 MILLION cum.
.FRANCE -0.3 MILLION cum.

.TAIWAN POC -0.8 MILLION cum.

.JAPAN -1.8 MILLION cum.
. CHINA -8 MILLION cum.
.OTHERS - 2 MILLION cum.

19. MAJOR TROPICAL SAWN WOOD PRODUCERS
.INDIA -5 MILLION cum.
.INDONESIA -4.2 MILLION cum.

.BRAZIL -15 MILLION cum.

.MALAYSIA -5.5 MILLION cum.
. INDONESIA -4.2 MILLION cum.
.THAILAND - 3 MILLION cum.
.OTHERS - 12 MILLION cum.

20. MAJOR TROPICAL SAWN WOOD
CONSUMERS
.INDIA -5 MILLION cum.
.INDONESIA -3.7 MILLION cum.

.CHINA -4.2 MILLION cum.

.BRAZIL -15 MILLION cum.
.THAILAND - 3.5 MILLION cum.
.OTHERS - 12 MILLION cum.

21. MAJOR TROPICAL PLYWOOD PRODUCERS
.INDIA -2.3 MILLION cum.
.INDONESIA -3.5 MILLION cum.

.CHINA -4.4 MILLION cum.

. MALAYSIA -5.5 MILLION cum.
.TAIWAN POC - 0.7 MILLION cum.
.OTHERS - 3.5 MILLION cum.

22. ROUNDWOOD PRODUCTION 2003
COUNTRY MILLION CU.M. %
USA 448 13
India 321 10
China 286 9
Brazil 239 7
Canada 195 6
Russian fed. 169 5
Indonesia 112 3
Ethiopia 94 3
Congo 72 2
Nigeria 70 2
Others 1337 40
---------------------------------------------------------
World Total 3342 100

23. COUNTRIES PRODUCTION CONSUMPTION
USA 89 (22%) 122 (30%)
CANADA 58 (14%) 21 (6%)
BRAZIL 21 (5%) 19 (5%)
RUSSIAN FED. 20 (5%) 10 (2%)
GERMANY 18 (4%) 18 (4%)
SWEDEN 17 (4%) ----------
FRANCE --------------12 (3%)
JAPAN 14 (3%) 23 (6%)
FINLAND 14 (3%) ------------
U.K. ---------------- 11 (3%)
CHINA 12 (3%) 19 (5%)
INDIA 12 (3%)12 (3%)
WORLD SAWN WOOD SCENERIO 2003
(In million cu. m.)
OTHERS 128 (32%)135 (34%)
TOTAL WORLD 402 (100%)402 (100%)

24. WORLD VENEER & PLYWOOD
PRODUCTION (2003) (MILLION CU.M.)
CHINA 25 31%
USA 15 19%
INDONESIA 7 08%
MALAYSIA 5 06%
BRAZIL 4 04%
CANADA 3 04%
JAPAN 3 04%
RUSSIAN FED. 2 03%
S. KOREA 2 02%
OTHERS 13 16%
WORLD TOTAL 80 100%

25. PULP AND PAPER PRODUCTION (2003,
MILLION CU.M.)
COUNTRY MILLION TONNES %
USA 53 28
INDONESIA 6 3
CHINA 18 10
BRAZIL 9 5
CANADA 26 14
JAPAN 11 6
RUSSIAN FED. 7 4
SWEDEN 12 6
FINLAND 12 6
INDIA 3 2
OTHERS 31 16
WORLD TOTAL 186 100

26. PRODUCTION AND CONSUMPTION
PATTERN IN INDIA

27. PRODUCTION OF TIMBER PRODUCTS (Million cu.m.)
YEAR INDUST.
ROUND WOOD
SAWN WOOD PLYWOOD VENEER
2000 16.500 7.900 1.315 0.015
2001 16.046 8.036 1.315 0.055
2002 18.824 10.990 1.615 0.244
2003 18.828 11.880 1.781 0.255
2004 22.810 13.661 1.957 0.267
2005 23.191 14.789 2.174 0.280
2006 23.192 14.789 2.154 0.285
2007 23.192 14.789 2.154 0.290
2008 23.192 14.789 2.154 0.290
2009 23.192 14.789 2.521 0.290
2010 23.192 14.789 2.521 0.290

28. CONSUMPTION OF TIMBER PRODUCTS (MILLION CU.
M.)
ITEM / YEAR2001 2002 2003 2004 2005
ROUDWOOD
/LOGS
15.914 15.051 16.293 16.535 16.535
SAWN
WOOD
8.806 11.007 12.010 13.784 14.984
VENEER 0.056 0.238 0.249 0.257 0.259
PLYWOOD 1.253 1.551 1.704 1.911 1.911

29. ITEM/YEAR 2006 2007 2008 2009
ROUNDWOO
D/LOGS
26.782 271.835 27.973 28.038
SAWNWOOD 14.843 14.823 14.813 14.860
VENEER 0.276 0.289 0.298 0.284
PLYWOOD 2.144 2.085 2.177 2.581

30. IMPORT OF TIMBER

31. CHANNELS OF DISTRIBUTION OF IMPORTED TIMBER
LOGS
IMPORT
AT PORTS
YARDS/
GODOWN
SAWMILLS/
PANEL IND,
TIMBER TRADERS/
WHOLESELLERS
BUILDERS/
FURNITURE
MANUFACTURE
R
CONSUMERS RETAILERS

32. CHANNEL OF DISTRIBUTION OF DOMESTIC TIMBER
FOREST/PRIVATE
AUCTION
SAWMILL/
PANEL IND.
TIMBER
TRADER
BUILDER/FURNITURE
MANUFACTURER
RETAILER
CONSUMER

33. TYPE OF LICENSE
1- OPEN GENERAL LICENSE
- THESE ITEMS CAN BE FREELY TRADED.
- SEEDS OF VEGETABLES, FLOWERS, ORNAMENTAL PLANTS,
TUBERS,BULBS,CUTTINGS AND SAPLINGS OF FLOWERS.
2- SPECIAL IMPORT LICENSE
- IT CAN BE PROCURED IN MARKET BY IMPORTERS AT A
SMALL PREMIUM

34. Government of India has permitted
import of wood under the Open
General License since 1996 To ease
out the wood shortage as also to
reduce pressure on natural forests.

This decision came in the wake of an
historical judgment of the Apex Court
of India arguing the need for
conservation of forests for much
needed environmental services and
local community benefits.

35. IMPORTER
1- Actual users;
For his own use , not for business or
trade in that item.
2.Registered importers ;
Those who have a valid registration
certificate issued by an export
promotion council, commodity board or
other registered authority by the
Government .

36. TRADE POLICY MECHANISM
India's international trading regulations & Export
Import (EXIM) Policy, are formulated and
implemented by Ministry of Commerce and Industry
in consultation with several other ministries
including
-Ministry of Agriculture
-Ministry of Environment and Forests
-Ministry of Finance
-Ministry of Shipping
-Reserve Bank of India

37. The Ministry of Finance - Fixing import duties and
other border and internal taxes.
The Reserve Bank of India – Manages the
exchange rate policy and also regulates interest
rates
The Directorate General of Foreign Trade is
responsible for the execution of the Export
Import Policy
The Commerce Department facilitates
continuous dialogue between the Government
and industry regarding major trade developments

38. Uruguay Round
The Uruguay Round Agreement signed in
Morocco (Northwestern Africa) in April
1994 Average import tariff rate across
all forest products in developed country
markets are to be reduced from 3.5% to
1.1% - a decline of nearly 70%. The tariff
changes will be greatest for pulp and
paper products, will experience a 100%
reduction in tariffs Uruguay Round.

39. :
The Doha Round of Trade Negotiations
launched in November, 2001
Objective - Lower trade barriers to increase the
global trade.
It has introduced negotiations in the
environmental goods & services.
Doha Ministerial Declaration (DMD)- enjoins
upon the WTO members to reduce or
eliminate tariffs on environmental goods and
services.
Environmental goods & services- The goods and
services used to measure, prevent, limit,
minimize or correct environmental damage

40. Non-Tariff Barriers
Customs procedures
Valuation
Clearance
Financial procedures
Standards
Quality controls
Certification
Phyto-sanitation- Measures requiring removal

41. In addition to the WTO/GATT negotiations there are other
recent actions to encourage trade liberalization .
North American Free Trade Agreement (NAFTA)
Asia Pacific Economic Co-operation (APEC)
Association of Southeast Asian Nations (ASEAN)
Southern Common Market (MERCOSUR)
Caribbean Community and Common Market (CARICOM)
FORESTRY TRADE COVERED REGIONAL INTEGRATION
TREATIES

42. TOTAL PROJECTED DEMAND OF RAW WOOD BY DIFFERENT
INDUSTRIES IN INDIA (MILLION C.M.)
INDUSTRY 2015 2020
PAPER & PAPERBOARD 26.24 35.84
NEWSPRINT 4.63 6.22
RAYON GRADE PULP 3.40 3.80
CONSTRUCTION INDUSTRY 26.30 28.50
PACKING 7.55 9.00
FURNITURE 5.90 7.53
AUTOMOBILE IND. 0.60 0.87
AGRI. IND. 2.50 2.50
RAIL SLEEPERS 0.02 0.02
SPORTS GOODS 1.67 2.73
HANDICRAFTS 0,78 0.95
PLYWOOD 22.90 29.20
VENEER 0.54 0.70
PARTICLE BOARD 0.28 0.35
MDF BOARD 0.24 0.28
MATCHBOX 3.40 4.00
MINING 4,50 5.00
MISCELLANEOUS 11.31 16.31
TOTAL 122.76 152.80

60. THANKS