PRICE OF TEAKWOOD IN KERALA

C. N. Krishnankutty “Demand, supply and price of teakwood in Kerala” Thesis. Department of Economics, Dr. John Matthai Centre, University of Calicut, 1997

CHAPTER 5

PRICE OF TEAKWOOD IN KERALA The structure of the timber market in Kerala and the auction procedure in the government timber depots are described in this chapter. Price of teakwood sold in monthly auction in the depots and the relationship of price with size and quality of teak logs are analysed. Variation in prices among different regions in Kerala is also examined in this chapter.

5.1 Market Structure A highly simplified structure of the timber market in Kerala is

given in Fig. 5. l .a. The different sources of timber supply in Kerala are forests, estates, home-gardens and import1. The major part of the teakwood and other timbers obtained from home-gardens is utilised within the rural household sector and seldom reaches any organised market. The timber extracted from estates goes to sawmills and other wood-based industries either directly or through traders. Import of teakwood and other timbers is directly done by saw-mills and wood-based industries. Only the timber extracted from the forests including teak plantations reaches in an organised market. The flow of timber from Kerala forests to final users is shown in Fig. 5. l .b. Timber from Kerala forests was extracted either under selective felling or clearfelling systems. The former was resorted to the evergreen forests and a major proportion of timber was supplied

' A substantial

quantity of timber is imported from countries like Malaysia and Myanmar and superior timbers such as rosewood and teakwood in converted form are exported to Japan, erstwhile USSR, etc.

Fig. 5.1. STRUCTURE OF THE 'IIMBER MARKET IN KERALA a Source and Distribution of Tmber

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SOURCES OF TIMBER SUPPLY IN KERALA

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DEMAND FOR TIMBER IN KERALA

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