Segezha Group, a prominent player in the timber industry, has revealed that the high cost of logistics is hindering the export of lumber from Russia to India. This information was shared by the company’s president, Mikhail Shamolin, during the “Made in Russia 2023” forum, as reported by the ProDerevo portal.
Shamolin highlighted that Segezha Group currently produces 2.5 million m³ of dry lumber with transport moisture content, with a staggering 98% of this lumber being exported. However, when it comes to India, the export volume is negligible, standing at a mere 0.4%. The primary reason for this disparity, as Shamolin explained, is the exorbitant costs associated with logistics.
The timber industry in Russia has been thriving, with an increasing demand for lumber from various countries. However, the transportation of goods to distant markets like India poses significant challenges due to the long distances involved. These challenges result in higher transportation costs, which ultimately hinder the export potential of Russian lumber to India.
Segezha Group is actively exploring ways to overcome these obstacles and tap into the Indian market. Shamolin emphasized the importance of finding cost-effective logistics solutions to promote the export of lumber to India. By reducing transportation costs, Russian timber companies can gain a competitive edge and seize the opportunities presented by the Indian market.
India, with its rapidly growing construction sector and increasing urbanization, offers immense potential for the timber industry. The demand for lumber in India is expected to rise significantly in the coming years, making it a lucrative market for timber exporters. However, the high logistics costs have been a deterrent for Russian companies.
To address this issue, Segezha Group is exploring alternative transportation routes and methods. By finding more efficient ways to transport lumber to India, the company aims to increase its export volume to the country. This would not only benefit Segezha Group but also contribute to the growth of the overall Russian timber industry.
Shamolin also highlighted the need for cooperation between the Russian and Indian governments to facilitate trade in the timber sector. By working together to streamline customs procedures and reduce bureaucratic hurdles, both countries can enhance bilateral trade and foster economic growth.
In conclusion, the timber industry in Russia is facing challenges in exporting lumber to India due to expensive logistics. Segezha Group, one of the key players in the industry, is actively seeking solutions to overcome these obstacles and tap into the potential of the Indian market. With the right logistics strategies and government support, Russian timber exporters can seize the opportunities presented by India’s growing construction sector and contribute to the overall growth of the industry.