Wood charcoal market in India

Earlier Report Observations

Between 2018 and 2024, India's wood charcoal market volume experienced moderate fluctuations, generally declining after a peak in 2020. A key driver was the development of export capabilities, which began to significantly affect domestic supply from 2022 onward. Production remained stable throughout the period, supported by the consistent use of abundant wood residue, a byproduct of the country's timber industry.

The regulatory framework for the sector was reinforced in 2018 when the National Green Tribunal extended rules for wood-based industries to charcoal producers, creating more orderly conditions without causing sharp output changes. By 2021, macroeconomic conditions, including GDP dynamics, exerted a restraining influence on consumer demand, coinciding with the onset of a gradual market volume decline.

From 2022, India solidified its position as a top-ten global charcoal exporter, with overseas shipments valued at tens of millions of dollars. This growth in external sales, alongside import fluctuations, became the primary reason for the consecutive contraction of the domestic market in 2022-2023. The industry continued to focus on strategic export planning and license management, shaping its trajectory into 2024.

Production wood charcoal in India

In kind, 2017-2020, K t

From 2017 to 2020, India ranked fourth globally in wood charcoal production.

Top producers of wood charcoal, 2017-2020

World map of production of wood charcoal, 2017-2020

In 2020, India produced 2,880 thousand tonnes of wood charcoal, remaining nearly unchanged from 2019. The largest decline occurred in 2018 at 0.0%, while the largest increase was also recorded in 2018 at 0.0%.

Annual dynamics of production in India in kind, 2017-2020, K t

Exports wood charcoal from India

Exports in kind, K t

India's wood charcoal exports have grown for the third consecutive year. In 2020, exports reached 108.5 thousand tonnes, holding steady compared to the previous year. Over the 2017-2020 period, exports surged by 226.8%, with a compound annual growth rate of 48.4%.

Annual dynamics of product's exports from India in kind, 2017-2020, K t

Between 2017 and 2020, Bhutan was the central partner for India's wood charcoal exports in volume terms, accounting for 84.4% of total flows, while other markets played a less significant role.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, K $ US

India's wood charcoal exports in value terms have increased for the third year in a row. In 2020, exports amounted to 32,550 thousand US dollars, showing a solid rise of 14.4% over the past year. From 2017 to 2020, exports grew by 135.9%, with a compound annual growth rate of 33.1%.

Annual dynamics of product's exports from India in value, 2017-2020, K $ US

From 2017 to 2020, Bhutan remained the dominant partner for India's wood charcoal exports in value terms, holding a 72.9% share of total flows, while other markets formed a long tail.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports wood charcoal to India

Imports in kind, K t

The data shows irregular changes, indicating a volatile market environment. Volumes dropped to their lowest in 2017 and climbed to their peak in 2020, representing an 84-fold shift. In 2020, wood charcoal imports to India reached 128.3 thousand tonnes, marking a sharp increase of 932.2% compared to the previous year. The largest decline occurred in 2019 at 45.8%, while the largest increase was recorded in 2018 at 1,396.5%.

Annual dynamics of product's imports to India in kind, 2017-2020, K t

Between 2017 and 2020, Sri Lanka and the Philippines were the dominant sources for India's wood charcoal imports in volume terms, jointly accounting for 81.5% of total flows, with the remaining volume distributed among smaller markets.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, K $ US

The market displayed volatility over the observed period. Imports bottomed in 2017 and peaked in 2018, differing by a factor of 20. In 2020, wood charcoal imports to India amounted to 5,731 thousand US dollars, indicating an improvement of 8.7% over the past year. The maximum value was recorded in 2018 at 12,677 thousand US dollars. The largest decline occurred in 2019 at 58.4%, while the largest increase was in 2018 at 1,873.1%.

Annual dynamics of product's imports to India in value, 2017-2020, K $ US

From 2017 to 2020, the leading sources for India's wood charcoal imports in value terms were the Philippines (41.1% of import value), Indonesia (21.5% of import value), and Sri Lanka (18.1% of import value), which together accounted for 80.7% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020