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As demand for timber in India increased, Bhutan’s timber trade also increased.
Natural Resource Development at Phuntsholing Tursa Timber Mill The company has exported 146,953 tonnes of timber to India over the past four and a half years and timber collection is currently ongoing.
He said according to the Natural Resources Development Corporation (NRDC) Phuntsholing district office, timber exports have increased significantly.
In the past three months, only 50,606.26 tons of wood were exported, and in this sector alone, wood production increased to 71,825.74 tons.
Exports continued to increase in August, with lumber shipments reaching 24,521.68 tonnes.
Ngawang Dondrup, the company’s regional manager, said that in the past, wood was collected in the wood warehouse and handed over to those who paid in advance after the wood was used up. Five or six trucks delivered wood every day. “It is transporting wood,” he said.
The problems and challenges facing timber exports from October 2023 will mainly be reflected in institutional and procedural adjustments.
Ngawang Dondrup said at the time the company prioritized harvesting timber for the pilot project and only exported a few truckloads.
However, timber exports have now increased.
India’s monthly demand is equivalent to the company’s annual production. “There is no problem of lack of market,” said the regional manager.
Plantations in Bhutan include Gujarat, Gandhinagar, Jammu and Kashmir, Srinagar and Nirdi and exports are made to several cities in India, including Lee.
The company has signed a three-year memorandum of understanding with eight timber harvesters and four connector installers.
“The MoU requires advance payment from wood buyers,” he said, adding that the government gave priority to large mills as it had to invest Rs 10 lakh, including security costs.
In February, the company launched pilot export tenders at Phuntsholing and Gelegphu, auctioning at a maximum price of Rs 360 per tree.
There are five different types of wood, a mixture of stongphu wood and kang wood, and the export price per pallet ranges from Rs 270 to Rs 500.
The government has also announced the export of more wood species to the Indian government, who have also been seeking the Gamma tree.
Despite the improvements in the process, exporters still face document discrepancies at checkpoints. There is a lot of work to be done and there are issues of late delivery.
Bhutan has limited timber supply to India due to increased demand from exporters and limited timber supply. They are happy with the good business from traders.
Barun Pogdal Timber Screening Company, which is preparing to export 2,000 tons this week, then conducted market research in New Delhi, Bangalore and Kolkata, India.
He said some owners have ordered more than 100 loads of lumber each, “and if the demand is met, the quantity will increase significantly,” he said, yes.
Due to the large number of documents and procedures, a lot of time is wasted and even if it is approved, further approval must be obtained from the regional office.
Timber is transported to Phuntsholing from Thimphu, Lhuntso, Lhamotokoto and Bumthang Chumade.
The government has scientifically identified the country’s densest forests, except for Wangdue Phobrang Smad and Rtsirang. The company aims to export 10.7 million tons of timber annually from 2024, which will contribute to trade differentiation and foreign exchange earnings.
The government will generate Rs 10 billion in revenue from wood and wood products over the next five years. The scheme is expected to start by the end of 2023. They will reduce and increase revenue.
According to Bhutan Trade Statistics, the import interest of wood products is expected to reach 4.28 trillion rupees, which will decrease to 3.56 trillion rupees by 2023.
Timber exports in 2022 reached 217.87 billion rupees, up from 263.29 billion last year.
The country began deforestation in 1979. Twenty years later, in 1999, the government banned timber exports to ensure the supply of timber for forest protection and rural development. They have been banned from participating in the fighting.
Ugyen Dorje
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