Thursday, August 21, 2025
The New Zealand forestry industry is confident that India will recoup its place among the country’s top five timber export destinations, such as the USA, UAE, China, UK, and Germany. Demand from Indian buyers is recovering and, crucially, trade has resumed under clarified fumigation protocols that allow methyl-bromide treatment on arrival for specific cargoes. Early 2025 trade data shows a sharp rebound in shipments, suggesting the India corridor is back on a growth trajectory after several disrupted years.
What has changed?
From 1 January 2023, New Zealand prohibited ship-hold methyl-bromide fumigation domestically, the method historically used for log exports to India. That rule change effectively slowed the corridor until officials negotiated an interim pathway with India: under defined conditions, breakbulk logs carried underdeck can be fumigated with methyl bromide after arrival at Indian ports. This arrangement kept trade viable while both sides continued evaluating longer-term treatment options.
New Zealand’s official “ICPR” guidance now confirms that methyl-bromide fumigation of breakbulk logs in ship holds may be undertaken on arrival in India, with temperature-time dosages specified. Fumigation on arrival remains prohibited for deck-stow breakbulk and for containerised logs, which must be treated before export. This clarity has restored commercial confidence for shippers and buyers planning multi-voyage programs.
After collapsing to about USD 9.5 million in 2023, the timber trade with India has already lifted to roughly USD 77 million year-to-date in 2025, reflecting the impact of the on-arrival treatment pathway and recovering demand in India’s construction and panel sectors. Industry sources now expect India to re-emerge among New Zealand’s top five export destinations for timber products as volumes normalise through 2025–26.
Market commentary in mid-2025 also noted India’s renewed ranking within New Zealand’s leading timber markets, placing the corridor “firmly in the top five” and ahead of some established buyers—though still well behind China’s scale. While the mix is evolving, the directional trend is clear: India is back on procurement schedules and building share.
How the protocol works on the ground
Under the current settings, vessels loading underdeck breakbulk logs at New Zealand ports can sail without pre-export methyl-bromide treatment, provided the shipment undergoes fumigation on arrival in India. Indian receiving ports such as Kandla (Gujarat) have handled these consignments, with costs and logistics arranged by importers. Deck-stowed and containerised cargoes continue to require pre-export treatment. For exporters, this split requires careful stowage planning, clear documentation, and forward booking with Indian fumigation providers to avoid berth delays.
Implications for the woodworking value chain:
For New Zealand growers and harvest managers
The India lane diversifies exposure away from China and spreads shipping risk across more destinations.
Restored access supports more stable stumpage options for radiata pine, especially in regions suited to breakbulk programs.
For Indian buyers—sawmills, plywood, and LVL producers
Reliable access to New Zealand radiata pine supports procurement planning for rotary-peeled veneer, structural sawn timber, and panel feedstock.
On-arrival fumigation centralises compliance at destination, which many importers prefer for operational control and speed to mill.
For shipping and port logistics
Under-deck allocation becomes more valuable; deck cargoes face stricter pre-export requirements, shaping voyage economics and port calls.
Coordination among exporters, carriers, and Indian fumigation providers is now a critical schedule risk lever.
While methyl bromide remains the accepted phytosanitary tool for New Zealand logs entering India, global policy continues to encourage reductions and alternatives. Technical bodies and regulators (in New Zealand and abroad) are reviewing replacement fumigants and complementary treatments to lower emissions over time. In parallel, international assessments have noted that a portion of New Zealand log exports that cannot be treated domestically are now legally treated upon arrival in India, bridging trade while longer-term solutions mature.
New Zealand exporters and Indian importers are also monitoring research on alternative fumigants (and heat or debarking regimes, where acceptable) to future-proof market access. However, India’s current import settings for New Zealand logs continue to specify methyl bromide as the approved phytosanitary treatment, particularly for breakbulk consignments utilising on-arrival protocols. Stakeholders should plan against today’s rulebook while staying close to regulatory updates on both sides.
With policy certainty restored and demand recovering in India’s construction and interiors markets, New Zealand’s forestry exporters are pivoting from disruption management to growth execution. The immediate priorities are:
If current settings hold, 2025–26 volumes should continue to firm, with India positioned to re-enter New Zealand’s top-five timber markets on a sustained basis. The corridor’s medium-term resilience will depend on logistics discipline, ongoing protocol clarity, and the pace at which lower-emission phytosanitary options can be validated for the India trade.
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Tags: India timber market, log trade rebound, New Zealand forestry exports, New Zealand timber exports to India, plywood and LVL demand, woodworking industry news
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