New Delhi, India: According to ITTO's Tropical Timber Market Report, the economy grew by 6.7 percent during the first half of 2009 and the govenment announced that the growth outlook for 2010 is maintained at seven percent. As foreign trade figures for May 2009 were in line with expectationsm, it is hoped that many of the measures outlined by the government will be implemented.

US and EU demand has been low, particularly for components made of Indian rosewood(Dalbergia lotifolia). Before the ban on exports of of rosewood logs and sawn timber exports, India used to export approximately 35,000 m3 to Japan, Italy, Germany and other countries that used to import them to manufacture veneers.

Exports of all logs and sawn timber of Indian origin are banned under the green cover programme. Only sawn timber from imported logs are permitted for exports under this scheme.

The conditions set by the programme indicate that against 100m3 of timber imported, not more than 60m3 will be allowed for re-export and that the extent of value-added activities of these products in the country must be at least 30 percent.

Door and window frames continue to be in demand from Middle Eastern countries and for flooring decking. Prices for Middle East quality for door and window frames were around US$2,200 per m3. Planks have been popular to Austrialia, Europe and North America. Plank (6' to 6') prices to Europe have been up around US$5,000. Kerala teak had been widely used by boat builders in the Persian Gulf but having been banned, shipbuilding activity is now done on India's western coast ports and the ships export mostly to the Gulf countries.