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Govt ban makes wood dearer

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KATHMANDU, Jan 4: The government ban on cutting trees and transport and sales of timber in Tarai areas has created shortage of wood in the market, severely affecting construction and furniture business. The price of wood has almost doubled in the market after the ban was enforced some five months ago.



The Ministry of Forest and Soil Conservation had imposed the ban on July 16 to control massive cutting of trees in the Tarai belt.[break]



Manoj Rijal of Shristee Furniture told Republica that price of Sal wood has climbed to Rs 3,500-Rs4,000 per cubic feet from Rs 2,000 cubic feet recorded five months ago. Similarly, the price of Jungle Sissau has doubled to Rs 5,000 per cubic feet over the period.



“I have been selling Sissau wood, which was priced Rs 800 to Rs 1,000 a few months ago, for Rs 2,000 per cubic feet. Most of the traders are selling wood from their stock in the absence of fresh supplies,” said Pramod, owner of Shiva Kasta Depot at Old Baneshwar.



Rijal further informed that he had to face a huge loss due to rise in wood prices. “I had signed the contract to supply wood for three houses before the ban was enforced. I had to face a loss of Rs 600,000 due to rise in wood prices,” he added. He also informed that many people have started using aluminum frames instead of wooden frames due to shortage of wood.



The rise in wood prices has increased the cost of house construction by about 12 percent, according to contractors.



Kapil Adhikari, president of Federation of Nepal Forest-based Industry and Trade, told Republica that Committee on Natural Resources and Means of the parliament had barred traders from collecting Rs 2.5 billion worth of logs from forests even after completing the tender process and paying revenue to the government.



The entrepreneurs have been protesting the decision since mid-December.



“Because of the ban, timber worth Rs 2.5 billion are decaying in forests,” Adhikari added.



According to traders, the ban has also affected export of woods to India which is worth about IRs 2.5 billion a year.



The traders complained that the decision has pushed more than 4,200 wood industries across the countries on the verge of closure. The industry worth Rs 12 billion has been providing employment to about 150,000 people, according to the traders.



The officials of the federation even submitted a memorandum to the Prime Minister, apprising the latter of the problems being faced by the industry.



“The PM informed us that he has given necessary directions to Minister for Forest and Soil Conservation and the government´s chief secretary,” Adhikari said, adding that the government officials are pointing fingers at each other instead of doing the needful to resolve the problem.



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