Timber auction sales in government depots continued at stable prices. However, due to the shortage of higher quality logs, prices are expected to trend upwards.

Log prices in government depots’ auction sales

Logs (Auction sales)	Rs. per ft3
Teak logs
Ship-building quality A	2100-2300
Ship-building quality B	1900-2000
Long length sawing quality A	1700-1800
Long length sawing quality B	1500-1700
Sawing quality A	1400-1500
Sawing quality B	1100-1300
Sawing quality lower grades	900- 1000
Other logs
Haldu (Adina cordifolia)	300-350
Laurel (Terminalia tomentosa)	350-400

Furniture industry relies more on domestic plantation hardwoods
With higher prices of teak and imported hardwoods, the Indian furniture industry is increasing the use of domestic plantation hardwoods. Among the favoured species are acacia (Acacia arabica) and neem (Melia azadirachta), both priced around Rs.250-400 per cu.f. In addition, mango wood (Mangifera indica) and sissoo (Dalbergia sissoo) are also popular, priced at Rs.300-400 per cu.f and Rs.500-700 per cu.f respectively.

Increasing interest in certification
Buyers of sawnwood and furniture are increasingly looking for certified wood and products. As a result, there has been an increasing interest among exporters to obtain certification for their products.

According to an analyst, since locally produced and imported logs are subject to strict rules by the Forestry Department, it will not be difficult to conform to certification requirements.

However, the general feeling in the trade is that certification will benefit producers in developed countries as it blocks imports of cheaper products from developing countries and thereby creates demand for domestic timbers in developed countries.