Relaxation in Export Policy of Red Sanders Wood

## Policy Analysis Report: Amendment to Export Policy of Red Sanders Wood **1. Executive Summary:** This report analyzes a notification issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, regarding an amendment to the export policy of Red Sanders Wood. The amendment relaxes the existing prohibition on the export of Red Sanders Wood in log form, specifically allowing the export of 810.1894 MT of Red Sanders Wood in log form, sourced from cyclone-fallen trees in the Paralakhemundi Forest Division of Odisha. The key finding is that this is a limited and specific exception to the general export ban, granted to the Government of Odisha for a specific quantity and purpose. **2. Introduction:** The purpose of this report is to provide an informative analysis of the DGFT's notification concerning the amendment to the export policy of Red Sanders Wood, based solely on the text of the notification. This report aims to clarify the nature, scope, and implications of this amendment for stakeholders. **3. Policy Overview:** * This notification amends the S.No 188, Schedule 2 of ITC (HS) Export Policy, 2018. * The core objective of this amendment, as inferred from the text, is to manage and utilize Red Sanders Wood that has fallen due to a cyclone in Odisha, by granting an exception to the existing export restrictions. **4. Background and Rationale:** This amendment addresses the specific situation created by cyclone-felled Red Sanders Wood in the Paralakhemundi Forest Division of Odisha. The general export prohibition on Red Sanders Wood likely exists to protect the species. However, the cyclone event has created a situation where allowing export of the fallen wood is more beneficial (likely to prevent wastage and generate revenue) than adhering to the strict ban. This is supported by the fact that the Ministry of Environment, Forest and Climate Change has recommended this relaxation. **5. Key Provisions / Changes:** This is an amendment, so the following details the specific change: * **Specific Part of Original Policy Changed:** The notification amends S.No 188, Schedule 2 of ITC HS Export Policy, 2018, specifically relaxing the export policy stipulated in Column 5 against S.No 188 of Chapter 44. * **New Rule/Provision:** The amendment permits the export of 810.1894 MT of Red Sanders Wood in log form fallen due to a cyclone from Paralakhemundi Forest Division in the state of Odisha. * **Difference/Effect of Change:** Previously, the export of Red Sanders Wood in log form was prohibited. This amendment creates an exception to that prohibition for a specific quantity, origin, and purpose. This allows the Government of Odisha to export this specific quantity of cyclone-felled wood. **6. Target Audience and Stakeholders:** Based on the text, the primary target audience and stakeholders are: * **Forest, Environment and Climate Change Department, Government of Odisha:** This department is directly permitted to export the specified quantity of Red Sanders Wood and is responsible for implementing the export. * **Ministry of Environment, Forest and Climate Change:** The ministry played a role in recommending the relaxation of export policy. * Businesses and entities involved in the harvesting, processing, and export of wood products, particularly those potentially interested in Red Sanders Wood, though this is limited to a specific scenario in Odisha. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** Forest, Environment and Climate Change Department, Government of Odisha is primarily responsible. * **Timeline:** The Forest, Environment Climate Change Department, Government of Odisha, must finalize the modalities for export within 12 months from the date of issuance of the notification (October 7, 2021). * The notification implicitly requires the Forest, Environment and Climate Change Department, Government of Odisha, to establish procedures for verifying the origin and quantity of the Red Sanders Wood to be exported, ensuring it aligns with the cyclone-felled origin requirement. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this amendment is likely to: * Enable the utilization of cyclone-felled Red Sanders Wood in Odisha, preventing its wastage. * Generate revenue for the Government of Odisha through the export of the wood. * Provide a controlled and limited exception to the general export ban, mitigating any potential negative impact on Red Sanders Wood conservation efforts as the wood is sourced from fallen trees. The impact on the broader market for red sanders wood is likely minimal due to the limited quantity and specific origin. **9. Conclusion:** The DGFT notification represents a specific and time-bound relaxation to the general prohibition on exporting Red Sanders Wood in log form. This amendment is primarily aimed at addressing the unique circumstances caused by cyclone-felled trees in Odisha and enabling the state government to manage and utilize this resource effectively. The significance lies in its demonstration of a balanced approach – allowing for economic utilization while maintaining the overall conservation goals for the Red Sanders Wood species.

Key Entities Referenced