Annual tree planting programmes have been quite active in many Indian states during 2009. Forest departments of all states, non-government organizations (NGOs) and members of the public have planted a large number of saplings of teak, eucalyptus, casuarinas, poplar, leucanea leucocephala, Dalbergia sissoo Bamboo and other species by local wood-based industries. In certain areas, emphasis has been on planting fruit and shade giving trees.

Sandalwood is also an important but rare species. Recent reports indicate that the number of sandalwood trees has increased in the Marayur sandalwood division from 57,767 to 58,514. There has been sufficient regeneration of this species in the wild and vigilance and protective
measures by local forest departments have shown to reduce smuggling cases as well.

India’s Foreign Trade Policy for the period 2009-2014 has been just announced. In the new policy, the government looks forward to achieve an annual export growth of 15% over 2010-2011 with a target of USD 200 billion by March 2011.

Special Economic Zones are expected to produce goods for export. The first wood-based products areas will be established in the State of Gujarat close to two of west coast ports Kandla and Mundra. Timber processing zone with about 400 licensed saw mills and about 35 plywood units exists in the same district, providing direct employment to 40-50,000 people. The planned size of the SEZ is 100 hectares and is expected to attract Rs.10 billion
in investment for wood-based industries.

Indian exporters and industry will benefit from the recently signed Association of South East Asian Nations (ASEAN) Free Trade Agreement as it will eliminate import duties on over 4000 items in intra-regional trade in ASEAN markets. The measures are expected to enlarge
volumes traded and boost economic return for all the participants. Under the new Agreement, India can export more units of plywood, MDF, particleboard, but is limited by availability of raw material. This FTA has generated lot of optimism and opportunities.

The global recession has affected India’s imports and export levels. In fact imports have declined more than exports so trade balances are being well managed. Exports of wood products are performing better than the second quarter of 2008.