Spike in Domestic Timber Products Prices
Timber prices in the international market has shot up owing to increased demand in China and the USA as well as hike in freight charges. Domestic timber producers have now decided to pass on the price rise to the end consumers which will push furniture and packaging material price up by almost 20% to 25%.
According to the industry players, cost of raw material including teakwood, hardwood and pinewood shot up in the international market and together with hiked freight charges in five months, timber products will become dearer now. Gandhidham and Kandla are the largest clusters of timber producers in the country. Nearly 70% timber imported by India comes through Deendayal Port in Kandla and Mundra.
“We have no option but to pass the cost on to our customers. While the industry was still recovering from Covid effect, the new high prices will definitely dent demand in the market said Navneet Gujjar, president of Kandla Timber Association.
Hardwood is used in making furniture, while teak is used in making doors and windows, and pine in packaging material. The plywood and timber processed in this industry is used in real estate industry, furniture, veneer, particle board, toys and other various sectors.
Timber is imported from New Zealand, Australia, Uruguay, Malaysia, African countries, Latin America and European countries. The industry annually imports 40 lakh CBM (cubic metres) timber worth nearly Rs 7,000 crore. According to industrial, revival of economic activity pushed up demand for timber in China, USA and Europe pushing up prices of raw material. Freight charges all over the world increased by 20 to 25 percent which got accentuated by shortage of containers.