The new European Union Timber Regulation which has come into effect from March 2013 expects Indian paper industry, operators and traders to ensure that the products they place on the EU market are sourced legally from the country of harvest.
At a meeting organised by the European Forest Institute (EFI) in association with the Indian Paper Manufacturers Association (IPMA), issues relating to the new regulation and its impact on the country’s paper industry were discussed.
Under the new regulation, placing illegally harvested timber and products derived from such timber on the EU market is prohibited.
According to a statement, the regulation applies to the listed wood and wood products, including paper and pulp, being placed for the first time on the EU market. The regulation excluded recycled products, printed note books and some bamboo products.
The meeting sought to create awareness and discuss compliance of regulations. During the sessions, issues relating to due diligence system, opportunities for new business for India, compliance requirements and cost of compliance were deliberated.
Maria Sube Elodie, Office of the EU Delegation to India, Sanjay Singh, Divisional Chief Executive, ITC Ltd’s Paperboards and Specialty Papers Division & Vice-President, Indian Paper Manufacturers Association, P.K. Jha, Additional Principal Chief Conservator of Forests, Andhra Pradesh State Forest Department, and T.R. Manoharan, Consultant- European Forest Institute, spoke on various issues in the sector.
The regulation divides those who deal in timber and timber products into two categories of operators and traders.
Operators are those who first place timber products on the EU market and carry the bulk of the responsibility, while traders are those who buy or sell timber or timber products already on the market. They are required to keep track of who they buy from and sell to.
The Indian paper industry is among the top 12 global players today, with an output of over 13.5 million tonnes per annum and an estimated turnover of Rs 35,000 crore. The demand is growing at 8-8.5 per cent per annum and is likely to reach to 25 million tonnes by 2020.