Thailand’s natural resources and environment minister wants the Forest Industry Organisation (FIO) to pull out of a 600m baht teak export deal with India.

Minister Yongyuth Tiyapairat suggested the 126,000m3 of teak would be best used domestically, as Thailand spends about 50m baht on timber imports annually.

However, FIO chief Chanatt Lauhawattana said the country would benefit from the deal, as the export price of teak is higher than can be obtained domestically.

Alleged irregularities in the deal are currently being investigated by an inquiry panel, which was set up after an FIO employee said the timber was being sold too cheaply.