The two states of Malaysia, Sarawak and Sabah have been major exporters of hardwood logs to India. But the Sabah state has completely banned the log export since last months, where as Sarawak state government is also planning to stop log exports. Sarawak Deputy Chief Minister Awang Tengah Ali Hasan said, ‘The state government is moving towards a total ban of export of logs’.
He said this is to ensure higher value for processed products and ensure the continued sustainability of the timber industry. “However, it is difficult to set a deadline for the total ban. We will gradually reduce the number of logs exported. We need to give local industry players some time to make adjustments. It won’t be fair if we totally ban exports without giving them a proper time frame,” he said during the Sarawak Timber Industry Development Corporation (STIDC) staff monthly assembly.
Awang Tengah said that based on the current log reservation quota, 80% of the logs are for local processing and the remaining 20% are to exports. Indian saw millers are heavily dependent on logs imported from Sarawak, hence once the logs export bans, it will certainly going to pinch the market and prices will go up.
Meranti, Padauk, Keruing etc including dozens of hardwood timber species are being imported from Sarawak. Indian building and Real estate sector consume huge quantity of Meranti timber, which is mainly sourced from Malaysia but after total logs export ban it would be difficult for saw mills to supply Meranti. Although, market sources said that this step would lead to increase the shipment of sawn timber import in India, that is increasing with every passing years.
Mr. Navnit Gajjar, President of Kandla Timber Association said, “The decision of Sarawak government to impose total ban on logs export, would definite affect our sawmill business, but we have lots of other options available for hardwood logs procurement. We are importing huge quantity of hardwood logs from Surinam, Solomon, P&G, Belgium, etc.”