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According to Huacheng Import and Export Data Observation, India has become the second largest importer of "conflict wood" (i.e., Myanmar teak) from Myanmar after China.

Myanmar Teak Becomes "Conflict Wood"

Teak from Myanmar's deciduous and evergreen forests is popular in the market due to its durability, water resistance, and pest resistance. It is mainly used for high-end furniture, veneers, and ship decks, especially in the luxury yacht industry in Europe.

However, in the past two decades, Myanmar has lost forest cover equivalent to the area of Switzerland. According to Huacheng Import and Export Data Observation, over 70% of the logs exported from Myanmar from 2000 to 2013 were illegally harvested. The illegal trade in teak in Myanmar has also increased.

Myanmar's forest coverage and teak reserves are shrinking. Ironically, this has instead increased the value of Myanmar wood (teak). Although Myanmar teak is listed on the World Conservation Union Red List of Endangered Species, it is not included in the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

In 2021, due to the military turmoil in Myanmar, the military government took over the state-owned Myanmar Timber Enterprise (MTE), which monopolized the country's timber production and trade, and exclusively controlled the precious timber and teak trade in Myanmar, becoming an important source of income.

In the same year, the European Union and the United States announced sanctions on all Myanmar timber trade, including teak. At this point, Myanmar teak has become a "conflict timber" and has been banned from flowing into the EU and US markets, as reported by Huacheng Import and Export Data Observation.

India Becomes a Hot Transfer Point for Illegal Timber Trade

In 2013, in order to prevent the inflow of illegally harvested timber, the European Union issued regulations requiring timber merchants to have the responsibility to conduct adequate due diligence on timber entering the EU market, in order to prohibit illegal timber from entering its market. This has hindered the entry of illegally harvested Myanmar teak into the EU market.

India has not completely banned the import of teak from Myanmar, making it a popular transit point for illegal timber trade. According to Huacheng Import and Export Data Observation, from February 2021 to April 2022, Indian companies imported over 10 million US dollars of Myanmar teak.

Myanmar teak, classified as "conflict timber" by the European Union, was exported to the United States and the European Union through India. Imports from countries such as Italy, Croatia, and Greece have also increased.

Traders claimed that their holdings of Myanmar teak had been paid before 2021; Or some Indian companies just fill in "Asia" in the column of wood origin, but do not specify which country it is produced from.

The policy adopted by Teak in Myanmar also seems to be wavering. In 2014, Myanmar introduced a ban on natural teak logging; After banning the export of entire logs, a new regulation has been introduced that only teak of "specified size" is allowed to be exported.

As China continues to strengthen its supervision over the inflow of illegal timber into the domestic market, the presence of Myanmar teak or finished furniture on the market is gradually decreasing. Huacheng Import and Export Data Observation reports.

It is precisely because there has always been a market for illegal timber that illegal logging continues to exist. India is not only one of the largest teak importers in the world, but also one of the largest teak processing products exporters. In response, industry insiders expressed the hope that international institutions and the Indian side would strengthen supervision over Indian traders and timber imports and exports, and crack down on companies involved in illegal trade.