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Shellac And Forest Products Industry

Shellac And Forest Products Indusrty & Exports In India

INTRODUTION
India leads the shellac market globally, as more than half the production comes from the country. The country produces vegetable saps and extracts, guar gums, plant and plant portions, fixed vegetable oil, shellac and lac-based products and other vegetable materials.
 
About 90% of the world’s guar gum comes from India. The major states producing guar gum are Rajasthan, Gujarat, Haryana, Punjab, Uttar Pradesh, Madhya Pradesh, Tamil Nadu, Maharashtra, Karnataka and Andhra Pradesh.
 
India has been registering a steady growth in the export of shellac and lac-based products over the last five years. It is the largest exporter of guar gum, sesame seeds and shellac, and the second largest exporter of medicinal plants in the world. Large volumes of shellac and forest products are produced by India that are internationally acknowledged for their superior quality. Additionally, shellac and forest products contribute significantly to the lives of millions of rural and forest-dependent poor people. According to a latest study conducted by the Ministry of Environment & Forests, “Some 50 million tribal people depend on NTFPs for meeting their subsistence consumption and income needs.” Vegetable saps & extracts constitute the majority of exports in the value terms with 62.7% share as of 2020-21. This was followed by plant and plant & plant portions, and guar gum.
 
EXPORT DATA
Until recently, the Council had been looking after the exports of shellac and lac-based products only but the allocation of other Non-Timber Forest Produce & their value-added products compliments the existing product basket. India is the largest exporter of guar gum, sesame seeds and shellac, and the second largest exporter of medicinal plants globally.
 
From April 2022-August 2022, exports of guar gum stood at 1.90 lakh MT and the total value of exports stood at US$ 296.55 million. In FY 2021-22, India exported 3.21 lakh metric tonnes (MT) of guar gums; a more than 37% increase from the 2.35 lakh MT from 2020-21. The value of exports during the period was US$ 447 million growing by more than 70% from US$ 263 million in 2020-21.
 
The total export of shellac and forest products from India during 2020-21 was US$ 2.4 billion. India has recorded a consistent growth in shellac and lac-based over last five years. The export of shellac and lac-based products during the same period was US$ 65.68 million. This was a 37% increase from the US$ 47.79 million in 2019-20.
 
In value terms, the largest exported item from India during 2020-21 was vegetable saps & extracts with a share of 62.7%. The value of vegetable saps and extracts exported during the year was US$ 1,482.04 million. Plant and plant portions were the second largest exported category in value terms with 16.6% share. The export of plant and plant portions or herbs in 2020-21 was US$ 391.74 million which was a 31% increase from the US$ 298.86 million in 2019-20. The export of fixed vegetable oil and cake during 2020-21 was US$ 92.42 million. The same in 2019-20 was US$ 89.08 million. The overall exports during the three years grew at a CAGR of 10% from 2018-19.
 
COUNTRY-WISE EXPORTS
India exports shellac and forest products to more than 20 countries in the world. The major importers are USA, China, Germany, the UAE, the UK, Bangladesh, Norway, Australia, Russia and Nepal.
 
Out of these countries China, USA and Germany are the largest importers contributing to around 17.5%, 16% and 6% of the total exported products from India.
 
USA is the largest importer of shellac and lac-based products. In 2020-21, USA imported worth US$ 15.8 million of shellac and lac-based products, constituting 24.0% of the total exported shellac and lac-based products. Bangladesh is the second largest importer of shellac and lac-based products with a share of 16.4% in the shellac exports.
 
USA is also the largest importer of vegetable saps and extracts from India. During 2020-21, the country imported worth US$ 587 million of the products. It is an increase of 16% over the previous year. USA contributes nearly 40% of the total exports of vegetable saps & extracts during the year. China is the second largest importer of vegetable saps and extracts with a share of 7.6%.
 
Additionally, USA is the largest importer of guar gum. During 2020-21, the country imported worth US$ 61.08 million of guar gum with a share of 21.3%. China is the second largest importer of guar gum.
 
GOVERNMENT INITIATIVES
a) Strategy to maximize exports of products under the purview of SHFEXIL
The strategic initiatives taken by the Council to promote the export of shellac and forest-based products are - Increasing the supply of focus products to propel exports from India; product and application research to go up on the value chain; Market development; and Development of Brand India.
b) Program for inclusive growth
This program is designed to tackle the lack of growth of the focus products. It is designed for the interests of tribal cultivators, who are among the most deprived rural poor and includes a large percentage of women. The objective of this program is to - increase production of the products under the purview of this Council significantly in India by 2022; target benefits to beneficiaries – by augmenting their annual income significantly; establish processing units in the growing areas to create an integrated Development model.
c) The Non-Timber Forest Produce information Centre (NTFPIC)
SHFEXIL has formed a Non-Timber Forest Produce Information Centre (NTFPIC) which is a one-stop body for all the information related to shellac and forest products. The objective of the information centre is building a community of stakeholders by bringing traders, producers, exporters, and co-operatives under its purview and providing them with a platform for highlighting the problems faced and providing them with support measures needed for export development.
 
GOVERNING BODY
Shellac and Forest Products Export Promotion Council (SHFEXIL)
SHEFEXIL was formed under the sponsorship of the Ministry of Commerce and Industry in 1957. It was formed to enhance India’s non-timber forest produce and to facilitate the exports of veg saps, guar gums, sesame seeds, herbs, niger, vegetable material, fixed vegetable oil and cakes etc. The functions of the council are to provide information and assistance, technology upgradation advising, organize trade fairs and build statistical databases for import and export of the country.
 
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Source: India Brand Equity Foundation


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