Wood consumption in Indian is growing fast and although the country has over 250 commercial timbers (including some of the most highly prized tropical hardwoods like Teak, Rosewood, Padouk, Red Sanders, Sandalwood) a strict conservation policy limits harvesting. This means India is a net importer of wood and wood-based panel products. Indian industrial demand for wood jumped from 58 million cubic meters in 2000 to 85 million cu.m in 2008 and expected to cross 150 million cu.m by 2018.

India manufacturers prefer to import timber in log form to feed the domestic industries. Imports are mostly from Malaysia, Myanmar, Indonesia, Nigeria, Ivory Coast, Ghana, Togo, Gabon, Brazil, Panama, Costa Rica, Ecuador and New Zealand. The major ports used for imports are Kandla, Mumbai, Mangalore, Tuticorin, Chennai Vishakhapatnam and Kolkata as well as many internal container depots.

Requirement for logs for the panel industry is met largely from plantations, Agro-forestry sources and natural forests. The concept of industry owned plantations of Eucalyptus, Poplar, Casuarinas and Acacia mangium is gaining popularity and this helps a lot in preventing illegal fellings from state forests. Teak harvesting is handled by the government Forestry Agencies and sales are made by auction at forest depots. Even the private logs are brought to the official depots for sale by auctions.