With Diwali (festival of lights) holidays coming to an end, workers have returned from home towns and the mills which were suffering due to a labour shortage are once again running at full swing. Of late, imports of sawnwood have been increasing as the difference in import duties for logs and sawn timber has narrowed also exporting countries are offering sawn timber at good prices. Sawnwood importers are happy but saw mills which were processing imported logs are worried at this development as they see growing competition from sawnwood imports.

On the financial front, corporate results for the half year ending 30th September are showing good results and this has lifted confidence all around. Added to that, reports of improvement in the US and Europe economies has driven fresh activity in the wood product export sector. India’s overall exports are still under pressure showing a decline of 14% for September, but the wood products sector has seen no downturn and the Indian Export Promotion Council is optimistic that last years’ levels will be maintained and probably exceeded.