KUCHING: India, the No. 1 buyer of Sarawak's tropical logs, has returned with new orders following the recovery of its currency.
Ta Ann Holdings Bhd financial controller Augustine Siaw said Indian log importers slowed down their buying activities in the fourth quarter last year after the rupee depreciated in value.
“They have now come back to buy our logs as the rupee has recovered,” he told StarBiz.
Ta Ann exported 74% of its 2011 export of nearly 148,000 cu m of logs to India.
Sarawak Timber Association's figures revealed that India imported 1.86 million cu m worth RM1.13bil or 60% of Sarawak's total log exports last year.
In 2010, India purchased 2.21 million cu m of Sarawak logs.
Ta Ann reported a 23% increase in average log selling prices last year, compared with 2010 but recorded a 22% drop in export volume due to lower production due to adverse weather conditions.
Meanwhile, Ta Ann and several other Sarawak-based listed timber companies reported a steep increase in their log production volumes in the first quarter this year.
During the Jan-March period, Ta Ann's production rose to 81,040 cu m or more than 12% from 72,284 cu m a year earlier.
Jaya Tiasa Holdings Bhd raised its production volume by more than 45% to 288,828 cu m from 186,222 cu m previously. Sister company Subur Tiasa Holdings Bhd's (Subur) production volume grew by more than 65% to 134,654 cu m in the first quarter from 81,067 cu m in the previous corresponding period.
Both Jaya Tiasa and Subur are under the stable of the diversified Rimbunan Hijau group.
Better weather conditions this year have facilitated log harvesting activities. Sarawak was hit by extreme wet weather in the first quarter last year which hampered logging activities.
In 2011, Sarawak's log production fell below 10 million cu m, to 9.61 million cu m, which was the lowest in more than two decades. In terms of export, the state recorded a 30% drop last year to 3.1 million cu m worth RM1.85bil.
The 2010 and 2009 volumes were 10.15 million cu m and 10.37 million cu m respectively. In 1991, the state logged a record 19 million cu m, and this was gradually reduced and maintained at about 12 million cu m a year in the past 10 years to ensure sustainable forest management. The Star Biz
Wednesday May 9, 2012
