NZTIF strongly supports the proposed NZ-India Free Trade Agreement

Set out below is the NZTIF submission to government on the proposed NZ-India Free Trade Agreement.

The following is submitted on behalf of the NZ Timber Industry Federation, an industry body representing around Sawmillers and Timber treaters across New Zealand. The Federation’s roots date back to around 1917 and many of our current members were trailblazers in terms of taking sawn New Zealand Radiata pine to the world, including Asia, USA, the Pacific and Europe.

The Federation is excited by the possibilities that exist for New Zealand Radiata Sawn Timber in India.

At present sawn timber exports to India from NZ are negligible, totalling just $10m over the last 5 years.  Softwood sawn timber imports into India from other countries shows a different picture.

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.

Timber Import / Export  Statistics

• 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. (Approx $6b USD)

Top Suppliers of Timber to India

• Top suppliers of timber to India include Malaysia, Germany, Indonesia, Ecuador, and Ukraine and China.

• These countries supply various types of timber products to meet India’s domestic demand and industrial requirements.

Trends and Insights

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 northeastern 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.

We consider it important that to best capture the maximum value from NZ, a real emphasis needs to be placed on the qualities of NZ Radiata, including it’s treatability, ease of working, and importantly sustainability of our resource and of shipping sawn timber. It is vital that Radiata is marketed as a timber that “covers all bases” from high end finishing to construction and packaging.

We have also attended a briefing from Government Agencies on India covering the opportunities available with others within the Forestry Sector including the Forest Owners Association, Sundry Forest Owners and other Timber Exporters (both sawn timber and raw logs).  Within the meeting there was a real desire that the Sector as a whole does not repeat the many mistakes that were made in the Chinese Market that has seen Radiata being generally seen as a “low end” product.

A number of Initiatives are being looked at including updating the literature and promotional material the Industry has at its disposal. We are also commencing a brief study with Scion to compare the suitability of Radiata use in building in India by looking at the strength characteristics of radiata against the requirements of Building Standards in India. We will advise developments in this regard in due course.