Khadi Industries chairman calls for lifting of “export prohibition” on bamboo charcoal

Says it will lead to higher profitability of bamboo industry

New Delhi, Feb. 27 (Delhi Crown): Khadi and Village Industries Commission (KVIC) has urged the Central Government to lift the “export prohibition” on bamboo charcoal for optimum utilization of raw bamboo and higher profitability in the bamboo industry, said a government source on Sunday (Feb.27).

Exports of bamboo charcoal would ensure complete utilization of the bamboo waste and thus make the bamboo business more profitable, said KVIC chairman Vinai Kumar Saxena in a letter written to Commerce and Industries Minister Piyush Goyal.

He said that one of the biggest challenges that the Indian bamboo industry was facing today was the “extremely high input cost” owing to inadequate utilization of bamboo.

In India, bamboo is mostly used in manufacturing of incense sticks (Agarbatti). wherein a maximum of 16%, i.e. the upper layers of the bamboo is used for manufacturing of bamboo sticks, while the remaining 84% of bamboo is a complete waste.

The Bamboo waste generated in Agarbatti and bamboo craft industries is not being utilized commercially. As a result, the Bamboo input cost for Round Bamboo Sticks is in the range of Rs 25,000 to Rs 40,000 per metric tonne as against the average bamboo cost of Rs 4,000 to Rs 5,000 per metric tonne.

Compared to this, the Bamboo price in China is Rs 8,000 to Rs 10,000 per MT but their input cost is Rs 12,000 to Rs 15,000 per MT owing to 100% waste utilization, said an official statement issued by the Ministry of Micro,Small & Medium Enterprises.

In his letter, KVIC chairman Saxena said that the bamboo waste could be best utilized by making “Bamboo Charcoal” which, though, has a very limited use within the domestic market, but it is hugely in demand in the international market.

However, the Indian bamboo industry is not able to tap the opportunity due to its “export prohibition”.

Considering the repeated requests of the industry, KVIC chairman has requested the Centre to consider lifting the export restriction on bamboo charcoal.

He said this would not only enable the industry to exploit huge global demand but also enhance the profitability of existing KVIC units by proper utilisation of bamboo waste and thus contribute to the PM’s vision of “Waste to Wealth.

KVIC has set up as many as 1658 new Agarbatti manufacturing units under its flagship “Prime Minister’s Employment Generation Program (PMEGP)”.

Similarly, 1121 new bamboo crafts related units, too, have been set up across the country. This has not only optimized the use of bamboo, but also created sustainable employment in rural areas.