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Business News of Friday, 29 August 2003

Source: GNA

Lumber Prices Escalate

Sekondi, Aug 29, GNA - Private estate developers, furniture manufacturers and other wood users in Sekondi-Takoradi have expressed concern about the escalating prices of lumber on the local markets. The developers claim that the prices of lumber started shooting up following the banning of the activities of chain-saw operators who have been supplying the markets with their "bush cut" lumber.

The estate developers told the Ghana News Agency (GNA) in an interview that two inches by six inches lumber which are mostly required for building purposes have shot up from 40,000 cedis to 95,000 cedis. Other sizes of various species have also doubled in prices. They said the sudden high cost of lumber has thrown estimates they make on building projects out of gear, resulting in many of their building projects coming to a standstill.

The developers and carpenters suggested that instead of phasing out chain-saw operators they should rather be organised, registered and brought under one umbrella and allocate to them a concession to produce lumber solely for the local markets.

By this arrangement the activities of the chain-saw operators can be monitored and controlled to check the indiscriminate felling of trees.

The developers said the new procedure where sawmills are to supply 20 per cent of their production to the local market is good but indicated that the prices of lumber from the sawmills would be very expensive since they go through several processes. In addition, the lumber from the sawmills cannot be made available in every town and village and urged the Ministry of Lands and Forestry to re-consider its decision to phase out chain-saw operators from the timber industry.