India has reached an agreement with Canada, which allows imports of Canadian pine, spruce and fir, specific products for sawmills in British Columbia.
The Indian market is small, but of quality, offering timber factories here an alternative to that from the U.S., where Canadian softwood lumber prices are kept under control by U.S. officials. The agreement allows the import of heat treated timber. India SPF shipments were previously required to be both fumigated and thermaly treated, processes which have proved too expensive. New regulations came into force early this year.
India already allows the import of hemlock and Douglas fir from mills of the coast of BC. This market is estimated at 20 - 25 million U.S. dollars per year ; within five years, market value could reach 50 millions USD. Canada seeks to introduce red and yellow cedar in India; the initiative could be achieved before the end of this year. India could become a market that could easily record revenues of over $ 100 million per year. Since 2006, when the Canada-US softwood lumber agreement was signed, offshore timber shipments have increased from 9% to 27%. Shipments from British Columbia accounted for more than 90% of total shipments, despite the overall decline in timber production.
Source: http://communities.canada.com |
