KERALA FOREST RESEARCH INSTITUTE STATUS OF RUBBERWOOD PROCESSING AND UTILIZATION IN INDIA – A COUNTRY REPORT Dr. T. K. Dhamodaran Scientist (Wood Science & Technology) Forest Utilization Programme Division KERALA FOREST RESEARCH INSTITUTE Peechi – 680 653, Thrissur District, Kerala State, India Ph: 91 487 2690282 Mobile: 09995186346 Fax: 91 487 2690391 e-Mail: tkd@kfri.org

Emergence of Rubberwood Utilization concept in India: 1980s. INTRODUCTION Emergence of Rubberwood Utilization concept in India: 1980s. Earlier uses: Domestic and Industrial firewood, low cost packing cases where high durability is not required Later, timber shortage and escalation of timber prices – emerged the concept of utilizing rubberwood for thick packing cases, pallets, furniture, plywood, panel boards and re-constituted board products Perishable nature of the timber – attack from sap-staining & decay fungi in green condition and insect borers in partially dry to dry timber – need for developing appropriate processing techniques to enhance durability. Research inputs on Rubberwood processing and utilization in India – Prominent role of KFRI – Concerted R & D efforts

Estimated deforestation rate in developing countries: Production Potential Global Scenario Estimated deforestation rate in developing countries: 16.8million ha/annum. 0.96 million ha of tropical rain forests can be conserved with the utilization of economically available rubberwood on an annual basis An additional 0.3 million ha of tropical rain forests can be further saved per annum, if all the available physical potential of rubberwood were used. In terms of money, rubberwood finished products generate about US$ 1.5 Billion per annum in the world market.

Production Potential ---Contd… World Growing stock of Rubberwood: 866 million m3 – Only 75% of this is utilized for industrial applications due to infrastructural and local constraints, size of holdings, quality of logs, etc. Logs of dia > 15 cms – for sawmilling & plywood sector; Logs of dia 15-5 cms - for fuel wood sector Annual world physical production of rubberwood during 1998: 41 million m3 (11 million m3 for sawmilling & plywood industry) Estimated production potential for 2016-2021: 52 million m3 (14 million m3 log out put for sawing/peeling)

Production Potential -- Contd… In the backdrop of ITTO’S decision to allow only tropical timber originated from sustainably managed sources (SMS) for international trade, Rubberwood is getting acceptance all over the world. Indian Scenario Hon. Supreme Court banned clear felling of trees from the natural forests Search for a renewable source of wood leads to the identification of rubberwood, a product of sustainably managed plantations as an eco-friendly alternative to natural forest-based timber. Low cost coupled with plentiful availability – Warranted attention to develop preservative treatment techniques to overcome its inherent property of low durability Success in developing preservative treatment for rubberwood in India opened up its large scale potential for commercial exploitation in the country.

Production Potential Indian Scenario -- Contd… INDIA – The 4th largest natural Rubber producing country in the world! Area under rubber cultivation: 5,83,000 ha Growth rate: 4.65% Current average estimated production of rubberwood/ha: SH:150 m3 (5300 CFT) Estates: 180 m3 Felling age: SH: 22 years; 265 trees/ha in felling stage Estates: 29 years; 245 trees/ha in felling stage Average yield of timber/tree: 0.73 m3 for estate grown & 0.57 m3 for SH 60:40 Proportion of stem wood and branch wood from both sector Availability: 1.6 million m3/year (87% from SHs)

Production Potential Indian Scenario -- Contd… Projected production of Rubberwood in India for 2000-2015 Slight declining trend due to slowdown in earlier planting area. As the country is timber deficit, importing wood and wood products worth Rs. 15720 millions/annum underlines the need of a scientific approach in the commercial utilization of available production potential. Estimated annual requirement of timber: 40 million m3 Domestic availability of timber: 29.25 million m3 Rubberwood (stem wood) has the potential to offer around 25 of the country’s timber requirement It has a further potential to conserve more than 20,000 ha of tropical rain forests on an annual basis Therefore, it is essential to streamline the policies required for maximum value-addition to this precious by-product of the rubber plantations

Commercial Utilization Stem wood share: 60%- Utilized by sawmilling & plywood sector Sawn logs to furniture, panel boards, pallets, packing cases, etc. Branch wood (40% share) is utilized for household & Industrial firewood – Not utilized for potential value-added sector (re-constituted boards) In 2006-07, out of the available 1.1 million m3, 45% gone for packing case sector, 29% for plywood, 21% for treated wood; safety matches and others 5%. Shift of planting material to high latex- low timber yielding varieties as well as staggered and delayed replanting caused a declining trend of wood availability (from 0.63 million m3 in 2002-03 to 0.22 million m3 in ’07).

Price of SAWN TIMBER remain steady during 2002-’08 Rs. 375- 475/CFT. Price trend For trees over a girth of 675 mm (Weight: 0.5 Tonne/tree) – price remain more or less steady during 1998-2000 (Rs. 400/tree); escalated to Rs. 1250/tree- in 2008. Price of SAWN TIMBER remain steady during 2002-’08 Rs. 375- 475/CFT. Current Situation: High price for latex (Rs. 130 - 70/kg) – Reluctance for felling – Shortage of timber – escallation of per tree price 88% of area in SHs, 91% of production from small growers; 10.1 lakh growers, 275 large growers. Source of additional revenue – cheaper than competing woods (30-40% lower than teak)

PROCESSING Primary processing - conversion, sawmilling & veneering - Dominant role of intermediaries (felling & logging contractors, suppliers, transporting agencies, sawmillers, etc.) - Indirect procurement system – Affects log quality assurance mechanism Lower level of vertical integration in the industry –Non-compliance of any single product manufacturing or products of specified dimensions – Resulting more wastage of wood – Absence of strong and enough panel-based or reconstituted wood products manufacturing base – Waste utilization ?

Sawing Practice of allowing more ‘tolerance’ in the thickness of sawn planks – up to 64% sawn timber recovery in the sawmilling & packing case industry General reluctance of sawmillers to process logs for high quality sawn timber desired for secondary processing – due to low recovery rate of 50% and inadequate supply of logs with higher girth class required for this specific sector.

Sawing … Low installed capacity utilization: 3-8 m3/ 8 hr. shift/day compared to 10 m3 in Malaysia. 90% of the sales from sawmills are for packing cases; 10% for planks suitable for secondary processing. Veneering Veneering industries operate in a large scale (consuming logs of 4000-6000 tones/year) Only 20% of the units have plywood manufacturing facilities, remaining units produce only dry peels. Veneering units depends more on intermediaries who controls more than 50% of the volume of veneer sales. Major stock of rubberwood veneers are utilized for low quality plywood and for core veneers.

Preservative Treatment – State of Art in India Freshly cut logs of average girth 60-80 cms & length 270 cms; wood with a mean basic density of 550 kg/m3. High MC; susceptible to sap-staining fungi (mainly Botryodiplodia theobromae) causing extensive discoloration – affecting aesthetic quality of products and thereby affecting price – Remedial measures: use of NaPCP/anti-sapstain chemicals; bituminous end coats to logs to prevent rapid drying (to control development of drying defects leading wood wastage) till further conversion in sawmills. Permanent preservative treatment of sawn sizes – Simple dip diffusion & VPI treatments – Use of CCB/Boron chemicals –BIS:401-1982 - KFRI Contributions.

Drying/Seasoning of Treated Timber Standards & Procedures BIS: 1993,2001 BIS: 1141: 1993 Treated RSKD and finished sizes for furniture components & other value-added products for Secondary Processing

Secondary Processing The amazing workability – suitable foe secondary processing Workability not adversely affected by treatment & drying Good sawing & machining properties; can be planed, grooved and sanded easily Attractive grain patterns, good luster, ability to accept any dye or stain – makes it ideal for home or office furniture, flooring and paneling material Wastes can be utilized for particle boards, MDF boards, wood cement boards, etc. Processed rubberwood from India compares favorably well with the rubberwood from any other countries.

Secondary Processing …. Main indicator of degree of commercialization: Relative share of stem wood in the secondary processing – Underutilization in India – lower share of the sawn timber (33% -0,22 million m3 out of the total 0.67 million m3 available stem wood during 2006-’07 ) utilized by the secondary processing sector. In 1985, 81% of sawn timber output in Malaysia was exported; more than 72% of the export earnings were from sawn timber Within a decade, well conceived government policy interventions (providing incentives to the export of value-added products and promotion of R & D efforts for the technological up-gradation of the downstream manufacturing process and clearly spell out regulations on sawn timber exports) in Malaysia facilitated up to 82% of the total export earnings is from furniture

Secondary Processing …. Switching over from semi-finished to finished products is advocated for ready international marketability. FSC Certification for Rubberwood products is also in its way.

Kerala Context More than 86% of India’s area under rubber cultivation is in Kerala State. Up 69% of the installed capacity for secondary processing in India is vested in Kerala due to proximity to raw material resources Kerala produces 92% of Rubberwood in the country The lower level of capacity utilization & vertical integration and export orientation prevailing in the rubberwood industry in India hinders the progress in this sector in the country. Any development in the Indian Rubberwood industry scenario should be more emphasized to make it appropriate to Kerala conditions

Indian Rubberwood Promotional Agencies & their efforts KFRI – Preservative Treatment; Testing & Certification – The most strong organization in Rubberwood Research in the country FRI (ICFRE) –CCA; Seasoning RBI (RRII) – Rubberwood processing and product manufacturing companies; R & D Lab; Testing & Certification IWST – Wood Testing IPIRTI – R & D for Reconstitute Board products CIFT – Boat making UPASI – Promotion of IRTF BIS – Product Specification & Code of Practice

Manufacturing Industries & Products Initial attempts to utilize Rubberwood started in 1960s. Gain momentum in terms of technology & investment in 90’s. Today there are 45 Rubberwood processing units of medium size Wealth & Employment generation, Saving Forests and Tropical hardwoods, eco & Environment friendly wood products Packing cases are the major products In the secondary processing, treated RSKD for mechanical processing for furniture, paneling, flooring, etc.; finger jointed glue laminated material for wide & long board products

Rubberwood-based Industries in India Biggest Unit: RUBCO-HUAT (25,000 m3 installed capacity/annum) Several small & medium sized Rubberwood processing units – concentrated in Kerala Preservative treated RSKD Is not available in open markets Less use in structural applications (housing)– suggests for policy changes for the benefit of the common people Existing industries consume only one-tenth of the available resources Scope for further expansion

Future..? WITH PROPER EXPERTIZE, MORE R & D EFFORTS, FINANCE & GOVERNMENT SUPPORT OPTIMUM EXPLOITATION OF THE AVAILABLE RESOURCES COULD SAVE A FOREIGN EXCHANGE TO THE TUNE OF US $ 200 MILLION & DIRECT EMPLOYMENT OF THE ORDER OF 2, OO, OOO IN INDIA.

CONCLUSION Issues: Inability of secondary processing units to control quality and price of logs due to imperfections in the primary market (due to influential role of intermediaries) Absence of well organized panel products industry Comparatively higher prices of logs Marketing problems arising from the acceptability of finished products both in domestic and world markets due to the absence of statutory authority to implement and monitor QC standards.

What needs to be done..? Strengthening promotional agencies in terms of statutory powers Strengthening R & D Institutions in terms of facilities and capabilities Market intelligence and incentives for manufacturing value-added products Promotion of panel products manufacturing base to absorb the wastes & small dimension logs Formulation of long term plan for ensuring sustained growth of industry --- for building up of the Indian rubberwood industry competitive to the international base in the long run

Abstract Area – 5,83,000 ha. INDIA - 4th in the World in Rubberwood production 87% from SHs. 250 trees/ha at the final felling stage Mean timber yield/tree 0.65 m3 Branch wood – 40% of the total timber yield. Present availability – 1.6 Million m3/year Annual Timber requirement: 40 Million m3 Domestic Timber availability: 29.25 Million m3 Potential of Rubberwood: can meet 2% of the country’s timber requirement Savings through Rubberwood: US$ 200 Million/year Employment generation potential: 2,00,000 people Saving of tropical rain forests/Environmental benifit: 20,000ha/year

Abstract –Contn.. Availability for secondary processing: 33% of total stem wood Present capacity utilization: one-tenth of the available raw material Utilization: Packing cases: 45% Plywood: 29% Safety Matches & Others: 5% Share of treated wood sector for secondary processing for the manufacture of value-added finished products: 21% Required: Streamlining the policies required for maximum value added utilization of the precious non-conventional low cost timber resource, Rubberwood.

Result Price of Logs: Rs. 3400/Tonne Price of Sawn timber: Rs. 475/CFT Abstract –Contn.. Price of Logs: Rs. 3400/Tonne Price of Sawn timber: Rs. 475/CFT Last 3 years Trend: Price of logs slowly increasing whereas price of sawn timber remains more or less stable Present per tree (0.5 Tonne) price: Rs. 1250/- Price of latex: Rs. 140-70 (high ups & downs) Result SH farmers unwilling to fell trees – TIMBER SHORTAGE ! -- High price of timber compared with the counterparts in the rubberwood rich South-East Asian countries !!

Abstract –Contn.. LACUNA Increasing influence of Middlemen (logging contractors, brokers, etc) over the primary market leading to imperfections and inability of secondary processing units to control the price and quality of raw materials Absence of well organized panel products industries for consuming small dimension logs and sawmill wastes STRENGTH Processing & Utilization Technology

What needs to be done in the Indial Rubberwood Processing Sector?? Abstract –Contn.. What needs to be done in the Indial Rubberwood Processing Sector?? Strengthening of Promotional Agencies in terms of R & D facilities and statutory powers for market interactions, developing panel products industry base, and formulation of long-term plan for ensuring sustained growth of the industry is suggested for building up of the Indian Rubberwood industry competitive to the international level in the long run.

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