Government lifts “Export Prohibition” on Bamboo Charcoal for Higher Profitability of Bamboo Industry

What is the News?

The Centre has lifted the “export prohibition” on bamboo charcoal to boost the utilization of raw bamboo and support the industry.

Background

Bamboo is largely used in making Agarbattis wherein up to 16% which is the upper layers of the bamboo is used for manufacturing while the remaining 84% of bamboo goes into waste. The waste generated in Agarbatti and bamboo craft industries is not utilized commercially.

Consequently, the bamboo input cost for round Bamboo sticks ends up in the range of Rs 25,000 to Rs 40,000 per metric ton (MT) as against the average Bamboo cost of Rs 4,000 to Rs 5,000 per MT.  

What can be done to overcome this problem?

Bamboo waste can be best utilized by making “Bamboo Charcoal” which has very limited use within the domestic market, but it is hugely in demand in the international market. 

Bamboo Charcoal is used for barbeque, soil nutrition and as a raw material for manufacturing activated charcoal. However, the Government of India has prohibited the export of Bamboo Charcoal.

What was the issue then with Bamboo Charcoal?

In 2017, the Government amended the export policy for bamboo products wherein exports of all the bamboo products were kept in the Open General License (OGL) category and were free to export.

However, exports of bamboo charcoal, bamboo pulp and unprocessed shoots were put under the prohibited category. 

What has the Government done now?

The Government of India has lifted the “export prohibition” on bamboo charcoal. This move would facilitate optimum utilization of raw bamboo and higher profitability in the Indian bamboo industry.

Source: The post is based on the article “Government lifts “Export Prohibition” on Bamboo Charcoal for Higher Profitability of Bamboo Industry” published in PIB on 21st May 2022.