March 5, 2025
GELEPHU – Timber exports from Bhutan are struggling to gain a foothold in the Indian market amid fierce competition from larger timber-exporting nations offering lower prices and higher-quality products.
Over the past three months, the Natural Resources Development Corporation Limited (NRDCL) has transshipped around 50,000 cubic feet (cft) of timber through its Gelephu depots, averaging about 556 cft per day.
The NRDCL, which manages Bhutan’s natural resources, operates timber depots covering about five acres in Gelephu, using 59 cable cranes, each costing around Nu 20 million, at depots across the country.
While the NRDCL has yet to compile a comprehensive export report, officials cited stiff competition in the Indian market and related business challenges as significant hurdles.
The Toorsa Depot in Phuentsholing, however, reported a significant increase in exports last August, shipping 71,825.74 cft of timber in July alone due to heightened demand in India.
The depots no longer hold any prepaid shipments. “Instead, we issue a proforma invoice (PI), after which payment is made. The consignment is then released based on the convenience of both parties,” said an NRDCL official, adding that importers have reported difficulties accessing Assam.
Timber exports are also challenged by issues such as the non-listing of broadleaf timbers, cross-border complications, transportation difficulties, competition from other countries on pine timber, fumigation requirements, kiln drying (KD), underdeveloped value addition facilities, and others.
The Bhutanese government has requested India to include 20 additional timber species for export, including hardwoods like Augur and softwoods such as Alder (Gama shing), though official confirmation is still pending.
“The list was submitted by regulatory agencies through the foreign desk, and we are not aware of the final version,” said the official.
The government initiated scientific thinning nationwide with a target of 10.7 million cft in annual exports from 2024 to 2026 to boost trade and generate foreign exchange.
In 2023, it set a five-year goal to generate Nu 10 billion in revenue from wood and wood product exports to reduce imports and increase revenue.
Despite these targets, NRDCL officials say they have not received specific directions on how to achieve them.
Bhutan exports a variety of timber products to India, with teak, walnut, and sal, among other species, experiencing the highest demand. Prices fluctuate depending on market conditions and volume.
According to Bhutan Trade Statistics, wood and wood-based product imports dropped to Nu 3.56 billion in 2023 from Nu 4.28 billion in 2022, while exports increased to Nu 263.29 million from Nu 217.87 million.
Although the timber volume at the Gelephu depot is also needed to meet domestic requirements, local sawmillers claim that delays in royalty payments to the forest department, along with a shortage of loaders at the Bumthang source, are affecting the wood-based industry.
However, the official said that NRDCL has not received any official complaints from the Association of Wood-Based Industries.
India is one of the largest global importers of timber, sourcing from countries such as Malaysia, Germany, Ukraine, Canada, New Zealand, the United States, and Bhutan, with Malaysia being a major source due to its cost-effectiveness and abundant timber supplies.
India’s timber market dynamics project a substantial increase in wood consumption by 2030, which will exacerbate the existing gap between wood production and demand, further increasing the country’s reliance on timber imports.
This surge in timber imports in India is driven by a combination of limited domestic supplies due to the conservation-oriented forest policy and booming demand from the fastest-growing sectors such as retail furniture, handicrafts, and hospitality.