NRDCL’s Clarification on Timber Supply Issues Raised in Kuensel, 31 January 2026
In the Kuensel edition of 31st January, 2026, there’s an article on timber supply in the country titled “State-controlled timber supply limits growth and export potential: Wood Industries”. While this is a relevant article, it has failed to provide all facts and a balanced story which the public deserves.
So, the NRDCL would like to supplement as follows:
- NRDCL carries out most of the commercial supply of timber which limits private companies’ participation in timber-harvesting, including scientific thinning, and allowing private participation would attract investments in equipment and technology:
Clarification: Since the introduction of scientific thinning in 2023, the Department of Forests and Park Services (DoFPS) has extended this opportunity to private parties.
- NRDCL has struggled to meet targets from its FMUs, and a predictable production and consistent supply would help both internally and externally (for export):
Clarification: The annual allowable cut (AAC) approved by the Department of Forests and Park Services (DoFPS) is not always fully realized mainly because of the following:
- The market’s stronger preference for conifer timber over broadleaf timber has at times necessitated the suspension of operations in broadleaf Forest Management Units and timber harvesting sites due to limited demand.
- Even within conifer zones, timber harvesting operations are frequently constrained by weak market demand, particularly in Central Bhutan, where supply often exceeds demand, resulting in significant unsold stock with NRDCL.
- NRDCL supplies only half of the total harvests:
Clarification: NRDCL is mandated to ensure that timber is made available and accessible to all Bhutanese citizens, and not solely to the Association of Wood-Based Industries (AWBI). AWBI represents only a segment of the wood-based industries, as a significant number of firms operating in this sector are not affiliated with the Association.
Under the current practice, NRDCL allocates 50 percent of the timber produced to AWBI, while the remaining 50 percent is utilized to meet the timber requirements of projects of national importance, in keeping with NRDCL’s sacrosanct mandate. In instances where the demand from nationally important projects is lower than anticipated, the balance timber is subsequently allocated to AWBI or other wood-based industries.
- Need for seasoning and treatment facilities:
Clarification: Any interested private parties can establish timber seasoning and treatment facilities and there are no restrictions.
NRDCL Management