Wood fuel market in India

Earlier Report Observations

From 2018 to 2023, India's wood fuel production and market volume experienced a gradual decline, starting at 303.3 million m³ and 303.4 million m³ respectively. This initial decrease was driven by a longstanding moratorium on timber fellings that constrained supply, coupled with a structural deficit where sustainable fuelwood production from forests fell short of demand by 86 million tonnes, leading to over-extraction.

External demand shocks, including LPG supply shortages in 2019 and again in 2023 due to global conflicts, temporarily increased reliance on wood fuel for cooking, particularly in states like Chhattisgarh and Kerala. However, these surges did not reverse the production downtrend, as the COVID-19 pandemic's impact on energy markets in 2020 further underscored the market's constraints.

Structural shifts from 2022 onward played a key role. Growing demand for wooden furniture, fueled by urbanization and rising incomes, diverted wood resources away from fuel use. Simultaneously, government energy policies promoting biofuels and cleaner cooking alternatives reduced traditional dependence on wood fuel, contributing to a market size of 298.2 million m³ by 2023.

Production wood fuel in India

In kind, 2017-2020, M m³

From 2017 to 2020, India held the top position globally in wood fuel production.

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

India's wood fuel production declined for the third year in a row. In 2020, the country produced 301.1 million cubic meters, which remained nearly unchanged compared to the previous year.

Annual dynamics of production in India in kind, 2017-2020, M m³

Exports wood fuel from India

Exports in kind, K m³

India's cross-border shipments of wood fuel increased for the third consecutive year. In 2020, exports reached 167.7 thousand cubic meters, showing a slight rise of 0.8% from the year before. Between 2017 and 2020, exports grew by 223.2%, averaging an annualized rate of 47.9%.

Annual dynamics of product's exports from India in kind, 2017-2020, K m³

Between 2017 and 2020, Bhutan was the leading destination for India's wood fuel exports in volume, accounting for 84.2% of total flows, with the rest shared among other markets.

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 fuel exports in value terms rose for the third straight year. In 2020, exports totaled 32 577 thousand US dollars, marking a 14.3% increase from the prior year. From 2017 to 2020, exports surged by 135.1%, with an annualized growth rate of 33.0%.

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

During 2017–2020, Bhutan was the primary buyer of wood fuel from India in value terms, taking 72.8% of total exports, while a diverse group of other countries made up the remainder.

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 fuel to India

Imports in kind, K m³

The data shows irregular changes, pointing to a volatile market environment. The lowest volume was recorded in 2019 at 104.8 thousand cubic meters, while the highest occurred in 2017, with a peak-to-trough ratio of 2.4 times. In 2020, foreign wood fuel supplies to India amounted to 205.8 thousand cubic meters, representing a sharp increase of 96.3% compared to the previous year. The largest decline was in 2019, at 47.1%.

Annual dynamics of product's imports to India in kind, 2017-2020, K m³

From 2017 to 2020, South Africa and Sri Lanka were the dominant sources for India's wood fuel imports in volume, together accounting for 85.5% of total flows, with smaller markets sharing the rest.

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

India's wood fuel imports in value terms fell for the second consecutive year. In 2020, imports totaled 29 195 thousand US dollars, constituting a decline of 54.5% relative to the prior year. The maximum value was recorded in 2018 at 29 195 thousand US dollars, with the largest increase that year at 11.2%. Over the period 2017–2020, imports decreased by 73.3%, with a compound annual growth rate of -35.6%.

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

In 2017–2020, South Africa (62.2% of imports in value terms), the Philippines (12.8%), and Indonesia (7.1%) consistently remained the main sources for India's wood fuel imports, together accounting for 82.2% 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