For the first time teak will be available at cheaper rates in India following a ground breaking initiative by the Andhra Pradesh State Trading Corporation (APSTC).
It is cutting out the middleman and importing teak direct from Myanmar. There are plans to bring in at least two consignments a month which the public will be able to buy at public auction at 25-30% less than usual.
APSTC has struck a deal with the Hyderabad-based firm Anuradha Timber Estates. Mr Tirupathi Rao, managing director of Anuradha Timber Estates, said: “Currently, nearly R70,000m worth of teak is being imported and sold in the country, but the business is being monopolised by four to five companies and their margins are very high.
“In Andhra Pradesh, one of the biggest markets, R10,000m worth of teak is sold. In the joint venture with APSTC, we wish to supply teak to the public at reasonable rates.”
