With saw-millers not willing to supply timber at the new commercial rate fixed by the government in January, Trashigang is facing a timber shortage. Saw-millers in the dzongkhag Kuensel spoke to said they had stopped supplying timber as they had been losing money in the business. They said that business had become erratic ever since the government's new timber pricing policy came into effect. Ever since the new rule came into force, not many saw-millers have attended the logging auctions held once a month in Mongar. Most sawmills are out of logs. Saw-millers said that they had to compete with private contractors and individuals, who bid higher at auctions and then sold timber within the fixed ceiling prescribed by the government. Pema Phuntsho, who runs a sawmill in Pam, said that differences arose when they bid with contractors and private parties, who took logs for personal use, whereas theirs was solely for business to sell to consumers. "There's no fixed rate while bidding but when we sell it, we sell within the ceiling fixed by government,' he said, adding that the rush for logs sent bidding very high. While the ceiling rate for different grades of timbers varied, he said he used to sell mixed hardwood timber for Nu 350 per cft earlier. Now the ceiling did not allow him to charge above Nu 209.29 per cft. Trashigang saw-millers said that they had to spend more on transportation and loading charges while bringing timber from depots in Mongar and Trashiyangtse. "There are sawmills that are closer to the depot who bid at the same rate as we do,' said Pema Phuntsho. Another saw-miller, who had brought logs from Bumthang, said he could not sell his timber before the government rule was enforced and would now incur losses if he sold them within the fixed ceilings. "If I sell that timber, I'll lose about Nu 30,000,' said the saw-miller. "Earlier, we used to include transportation and other charges in the timber cost and fetched about Nu 5 profit per cft.' Some saw-millers said their business depended upon timber quality and that only 60 percent of the total timber bought from the auction yards was usable. They said such situations were not considered in the new rule. A joint suggestion had been put up to the authority in February but there was no response. Chief forestry officer in Trashigang, K B Samal, said some of the concerns raised by saw-millers were genuine and being considered at headquarters. "But until there is any change in policy, they will have to function within the law and stick to rules,' he said. He said saw-millers complained about the new rules even before it had been implemented properly. "We request them to give more time and everything will improve. We've framed the policy with good intentions for all,' said K B Samal. He said that a task force, comprising of experts from relevant fields, had conducted a detailed analysis, looked into every region and every factor; direct and indirect cost calculations were considered and the prices were fixed. "In the past, it was easy money for sawmills but about 90 percent of the consumers, including the government, suffered,' he said, adding that under the new policy they were required to work efficiently with a limited margin of profit. "Without participating, if they want to back off, we might be forced to look for alternatives. The government could provide such services at the same cost,' he said. While saw-millers suggested that, if private people and contractors were barred from auctions, they could at least attend to their demand and earn some profit, K.B Samal said that this has been done keeping in mind the capacity of the sawmills. "There are big construction companies and their demands are more than our sawmills can supply,' he said. However, he agrees that extra expenditure incurred while bringing in timber from long distances to fulfill customer demand had not been considered in the new policy. "We've considered only the costs incurred from regional auction yards. That improvement could be made in future. But, until then, they have to stick to the new policy,' said K B Samal. By Kesang Dema kesang64@kuensel.com.bt