Sunday, August 13, 2006
Wood won't work
| At least for now. For plush offices, nothing less than the best teak would do. And plush offices are sprouting all around. More the demand, much more the price. |
Unprecedented real estate boom and severe shortage of wood has sent price of timber products skyrocketing in Hyderabad. Prices have increased by Rs. 200 to Rs. 400 per cubic feet . The demand for wood has increased tremendously as realtors now focus on building furnished duplex flats. They have world-class furniture to woo customers, mostly IT professionals or those living abroad. "Prices have gone up because the demand for the product is increasing everyday," says S. Srinivas, owner, Indian Timber Products Private Limited. With influx of multinational companies, the offices too have never looked better with cubicles, cabins et al made of wood sending the demand soaring.
Teak, deodar, sal, maple and sycamore are the most preferred ones. Teak comes in various grades with the Indian Teak and Burma Teak being the superior class. African teak, sal, maple and sycamore are the imported varieties. Another factor for the increased price is the dwindling imports from Africa. Ninety per cent of wood is being imported from there but with Nigeria and Togo putting a ban due to rapid depletion of forests the shortage is being acutely felt.
Another culprit
Another source, Myanmar too has hiked the auction rate by about 20 per cent. Managing Partner of Mourya Timbers P. Srinivas points out that diesel prices rise too has affected timber prices it has to be procured from Gujarat, Mumbai and Chennai. Market sources say teak is most preferred because of the retention of shape and durability. "It is easy to work on and can be finished to a fair surface, besides it also takes the polish well," says a merchant.
