All about timber market in India in 2023

India is one of the biggest countries in the world which has a lot of varieties of timber. From various forests as well as harvesting firms, timber is supplied to the domestic markets and international markets.

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Timber market: What are the major factors affecting the market in India as well as the international market?

In every corner of the globe, there are a few factors present which will affect the whole timber market. Here are those crucial factors affecting the timber market.

Competition of the market: Wood basins are often restricted to geographic regions made up of just a few counties. The cost of timber may differ depending on whether it is found in a territory that is only moderately competitive. In order to ensure minimal delivery costs, almost all timber business companies that deal with forest products buy their wood from locations closer to their mills, even if that implies a higher stumpage price. As a result, even when you’re close together geographically, the pricing may vary based on the competition and location of the timber forest.

Inventory planning: Controlling an inventory is indispensable if you want to control facility production, the broader supply chain’s productivity, or related expenses. You may now expand productivity and save costs by improving the supply chain. However, when supplies are low, the producers who use wood are driven to purchase it on the open market at a higher price. A plan would ensure that the facility will obtain the volume of timber needed to run at the desired level of production.

Weather details: Loggers may find it more challenging to provide the required loads of wood during wet weather than they would on dry days. Timber often belongs to the category of “wet weather tract” that could be reaped all year long and would receive greater premiums since it is so convenient. The price of timber rises noticeably when the supply is bounded. In this context, buyers should also be aware of foreseeable but unlikely weather extremes like hurricanes and wildfires, which have an immediate influence on the cost of timber.

Transportation service: Transporting equipment is a substantial extra cost for loggers. Now, loggers who want to increase their weekly production by transporting or gathering more loads each day have the best option on the enormous tracts of 200 acres or more. The tracts with more renowned area and volume would only secure higher global timber prices due to this.

Size of the tree for timber quality: The size of the tree is eventually what matters most when it comes to the cost of timber. When it comes to the size of the log, the value of the trees per tonne usually increases. However, even when they have grown to the required breast height (DBH), low-quality trees can be used in a less-pricey product class, which results in them having a low wood price index.