The Indian exchequer is incurring huge losses due to restricted global trade in the rosewood (Dalbergia sissoo) from  2016 onward after it was listed under Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

According to the Government data, exports of furniture and handicrafts made of the species have fallen by almost 50 percent from an estimated Rs 1000 crore (USD 129 million) since the restriction imposed in 2016.

India has once again submitted its proposal before the CITES, a multilateral treaty to protect endangered plants and animals, seeking its exclusion from  Appendix II.  Under Appendix II  the species are not necessarily threatened with extinction, but in which trade must be controlled to avoid utilization incompatible with their survival. India has been opposing the move to include rosewood under a controlled trade ambit. The proposal has been sent to the CITES ahead of the nineteenth meeting of the Conference of the Parties to be held in Panama City (Republic of Panama) in November. “The decrease in exports of rosewood products has affected the livelihoods of around 50,000 artisans who work with the species.

Rosewood

• The Indian rosewood, or Dalbergia latifolia (synonym Dalbergia emarginata), is a valuable timber species. Its natural habitat is low-elevation tropical monsoon forests in south-east India. Rosewood, Bombay blackwood, roseta rosewood, East Indian rosewood, reddish-brown rosewood, Indian palisandre, and Java palisandre are some of the common names in English. Beete and satisal are two Indian popular names for it. The tree can reach a height of 40 metres (130 feet) and is evergreen, though in drier subpopulations it can become deciduous.
• The importation of lumber products from wild harvested D. latifolia is prohibited by the Indian Forest Act of 1927. Due to its exceptional attributes of having a long straight bore, strength, and high density, the wood has a high international demand and price. The tree, however, is slow-growing. 
• Plantations in Java began in the late 1800s, but because to its slow growth, plantations have not spread beyond Java and India. For economic reasons in cottage industries, several once common uses for D. latifolia wood have now been supplanted with Dalbergia sissoo wood and manufactured rosewoods.
• D. latifolia is native to India and Indonesia, but it is widely planted as an ornamental plant in Nigeria, Kenya, Vietnam, the Philippines, and other tropical African and Asian countries. It can reach a height of 40 metres and develops swiftly in the correct conditions. 
• D. latifolia is recognised for producing extremely hard and durable wood with a long straight bore, making it quite valuable on the worldwide market. In its natural habitat, its bark is also used for medicinal purposes.
• The average price of D. latifolia timber in India is greater than teak. Furniture, plywood, veneer, decorative wood items, construction, musical instruments, and other wood products are all made with it. However, the species is slow-growing and is endangered due to overexploitation of its timber and illegal logging. To accommodate the demand for Indian rosewood, large plantations have been built in Java and India. It is classified as "vulnerable" on the IUCN Red List.

• When properly planted, the tree produces a robust, sturdy, heavy wood that is resistant to decay and insects.
• In both India and Java, it is grown as a plantation wood, frequently in thick, single-species trees, to produce its extremely coveted long straight bore.
• Tree wood is used to make high-end furniture and cabinets, as well as guitar bodies and fretboards, exotic veneers, sculptures, boats, skis, and reforestation.

• Dalbergia sissoo, often known as North Indian rosewood or sheesham, is a deciduous rosewood tree native to the Indian subcontinent and southern Iran. D. sissoo is a crooked, tall tree with long, leathery leaves and pink or pale blooms.
• Dalbergia sissoo is found in the Himalayan foothills from Afghanistan in the west to Bihar, India in the east. It can also be found in Iran. It grows predominantly along river banks over 200 metres (700 feet) elevation, but it can naturally reach 1,400 metres (4,600 ft).
• D latifolia (Indian rosewood), which is native to southeast India, is classified as "vulnerable," while D sissoo, also known as sheesham or North Indian rosewood, is considered a species of least concern by the International Union for Conservation of Nature (IUCN).

India’s Concern Regarding Sheesham (Dalbergia Sissoo)

• Rosewood (Dalbergia sissoo) has been considered for removal from Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a multinational treaty aimed at protecting endangered plants and animals.
• Several African and Latin American countries expressed worry during the 17th COP (2016) about a "considerable rise in interest in Dalbergia wood in international markets, primarily in China." This, they claimed, was fueling an unlawful trade that was decimating Dalbergia populations.
• Despite the fact that CITES concentrates on the protection of specific species, COP 17 included the entire genus in Appendix II, which governs specie trading.
• Despite the fact that the majority of the 182 member countries agreed to the idea, India expressed reservations over the inclusion of all rosewood in Appendix II for the first time.
• Because all Dalbergia species are not threatened, India has proposed that CITES control each species'' trade depending on their conservation status.
• According to India''s suggestion, the Dalbergia sissoo species grows at a rapid rate, has the potential to become naturalised outside of its native region, and is even invasive in some areas.
• The inclusion of the Dalbergia genus on the list may cause unneeded hurdles in the trading of common species such as D sissoo, which are maintained and monitored under forest management plans and are protected under Indian forest regulations.
• The wood is valued for its distinct, blood-colored sheen, complicated grain, durability, and excellent polish. It''s also used to make guitars because of its acoustic qualities.
• Since an international agreement controlling the trade in all 250 rosewood species went into force in 2017, the export market for rosewood handicraft, which was once a vibrant industry, has practically collapsed (under Dalbergia genus).

CITES

• It is a multilateral agreement between states aiming at ensuring that international trading in wild animal and plant specimens does not jeopardise their survival.
• The Convention on International Trade in Endangered Species (CITES) is an international treaty to which States and regional economic integration organisations voluntarily agree. Parties are states that have decided to be bound by the Convention (''joined'' CITES).
• Although legally binding (i.e., they must execute the Convention), it does not replace national legislation. Rather, it establishes a framework that must be followed by each Party, which must enact domestic legislation to ensure that CITES is implemented on a national level.
• It works by imposing restrictions on international trading in specimens of specific species. All species covered by the Convention must be imported, exported, re-exported, and introduced from the sea through a licencing system.
• Each Convention Party must appoint one or more Management Authorities to oversee the licencing system, as well as one or more Scientific Authorities to advise them on the impacts of trade on the species'' status.

• The species covered by CITES are divided into three Appendices, each with a different level of protection.
• Appendix I contains extinction-threatened species. Only in unusual situations is it permissible to trade specimens of these species.
• Appendix II: covers species that aren''t technically endangered, but whose trade must be regulated to avoid unsustainable use.
• Appendix III contains species that are protected in at least one country and have requested assistance from other CITES Parties in restricting trade. Changes to Appendix III are handled differently than changes to Appendices I and II because each Party has the authority to make unilateral changes to it.