Myanmar: Investment in plantations required before approvals for processing

Source:
ITTO/Fordaq
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It has been reported that the Myanmar Investment Commission is requiring foreign investors in wood processing to first establish plantations to ensure raw material supply.

This has been strongly criticised because it will deter potential investors because of the time it takes for plantations to yield industrial sized logs and because the nature of the plantation business and wood processing require very different skills and level of investment.

In related news, the Forest Department has announced that it has repossessed title over 135,000 acres of plantations because contractual terms have not been met.

Media reports say some 63,000 acres of teak plantations and 72,000 acres of other hardwood plantations have been repossessed. In another instance around 140,000 acres has been repossessed by the Tanintharyi Regional Government because of contract non-compliance by investors who intended to establish palm plantations.

Analysts write that under the previous administration in Myanmar many influential people acquired land for forest plantation and other uses.

The timber industries in Myanmar have to deal with uncertainty of raw material supplies, especially teak. The Forest Department has announced the conditions under which harvests of teak logs from government owned plantations will be allowed.

There are two conditions, say analysts, minimum age 30 years and minimum girth 3 feet.

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