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Forest Sector

A Birds Eye View

Presented By: Ashutosh
Road Map…
v Forestry Sector over View
v Status of World Forestry
v Indian Forestry Sector
v Industries in Forestry Sector And
v Institutions in Forest Sector
v Policy in forest Sector
v Problems in Forestry Sector
v Solution for the Identified Problems
What We Mean By Forest…
A forest is a type of ecosystem in which there is
high density of trees occupying a relatively large
area of land.

An ecosystem is an ecological unit consisting of
a biotic community (an assemblage of plant,
animal, and other living organisms) together
with its abiotic environment (such as soil, rocks,
What We Mean By Forestry???
The practice of creating, managing, using,
and conserving forests for human and
animal benefit.(FSI)

The science and art of cultivating,
maintaining, and developing forests for
scientific management of a forest

Forestry, the management of forest lands
for wood, water, wildlife, forage, and
Classification of Forest :
• Depending on Vegetation
• Depending on Density
• Depending on Altitude
• Depending on Seasonality
• Depending on Legal Status
• Depending on Climatic Condition
• Depending on Age Class
• Depending on Geographical Distribution

Forest is a property of State and Centre
Importance of Forest
• Tangible Benefits
• Revenue generation
• Employment opportunity
• Livelihood Generation- Food/Medicine/Resin/Gum etc

• Intangibles Benefits
• Environmental sustainability
• Reducing Green house Effect
• Global Warming
• Rainfall
• recreational,
• aesthetic, and spiritual benefits for millions of people.

So We Need To conserve Forest
Source: State of World Forest,FAO,1999.
Different Cause for Changing in forest
• Logging
• Encroachments
• Mining/ Energy
• Heavy Biotic
• Land Clearing for

Data from WRI/WCMC/WWF, 1997
Data from FAO, 1997
Indian Forestry Sector

Data source: FAO, Global Forest Resources
Data source: FAO, Global Forest Resources Assessment 2005.

Data source: FAO, Global Forest Resources
Timber Non Timber

Hard Wood Various Plant
Soft Wood Part other than
Various Forest based
industries Gum/Resin/oil/fruits/flowers/
Box medicine/food etc...
/Boat/Railways /fuel wood
Paper industry overview
vIndian Paper Industry account 1.6% of worlds Production
vPaper industry in India is the 15th largest paper industry in the world
vCurrent Demand for Paper and Pulp 2008 is 6 million tone
vThe first paper mill in India was set up at Sreerampur, West Bengal,
in the year
vIn 1951, there were 17 paper mills, and today there are about 515
units engaged in the manufacture of paper and paperboards and
newsprint in India.
v. The output of the Indian Paper Industry is around six million tons
per annum with a turn over of about of Rs. 15000 crores
vcontributing over Rs. 2500 crores annually to the exchequer by way
of various fiscal duties and taxes
vemploys nearly 300000 people directly and 1000000 people
Data from WRI/WCMC/WWF, 1997
Key problems faced by paper industry

cost of production and cost efficiency
inadequate availability of raw materials,
power cost
Policy level difficulties
concentration of mills in one particular
Problems due to Paper
Contaminated Sediments, Fish & Ducks
Continuing Toxic Pollution
Conventional Air Pollution
Energy Consumption
Solid Waste
Corruption of Democracy
Initiative taken By Paper Industry
• AP Paper Mills
($40 million investment in support to process improvements at the pulp mill)

• Ballarpur Industries Limited (BILT):
($15 million investment,30000 farmers)
• JK Paper MiLL
($26 Million investment, 40000 farmers)
• ITC Paper
(23000 farmers)
Initiative By IFC
• IFC has approved more than $120 million in
financing to India’s four leading pulp and paper
• Part-time employment for over 120,000 farmers
• Increasing farmers’ income by 25-50 percent
• 60 percent of the country’s farm forestry programs
• Thousands of direct and indirect jobs
• Fuel wood for local use
• Providing Technology for minimum waste during
Policy Reforms in Paper Indust
• Encourage small farmers to plant fast-growing trees on
unproductive land( Farm Forestry with PPP)

• Coordination with Different Research and ImplimentaionBody

• Change in Policy( Industrial Plantation)

• The industry is also seeking permit duty free imports of new &
second hand machinery/equipment for Technology Up
Conceptually NTFP (Non – Timber Forest
Products) refers to all biological materials other
than timber extracted from natural forests for
human and animal use.

It includes plant tissue used for fiber, building
material, medicine, edible leaves, roots, flower,
fruit, seed, nuts, honey, resin, glue, lac etc. and
has both consumptive and exchange value.

Prior to national Forest Policy (NFP), 1988, NTFPs were popularly
know as Minor Forest Products (MFP) that was centered around
Kendu leaves (Bidi Patta) and few other product

( Saxena, N.C., Policy and Legal Reforms for Poor in India, UNDP, New Delhi)
In India there are 162 No of NTFP recognized and out
of them 64 species are regularly traded

In India, the contribution of NTFP and eco-tourism to
the Forestry Sector’s gross value (of Rs 259.85
billion) is 16%(MOFE)

It is claimed that 1.6 million person years of
employment in India are from NTFP while the
forestry sector in total provides 2.3 million person
years of employment. (Shiva & Mathur, 1998)

All India average value of NTFP to be Rs 1671.54 per
hectare and Rs. 41.89 billions as the estimate of
Trade Potential
Commercial NTFPs are estimated to generate Rs. 3 billion (US$
100million) annually in India.

It exports a large number of NTFP to other countries earning foreign
exchange revenue to the tune of Rs. 10 billion (US $ 384 million)

India holds monopoly in world trade over some of the NTFPs as
Karaya gum, myrobalans and Sandalwood chips and dust

The export of NTFP has grown by 20-25% over the past few years

In 2006-07, India earned Rs 39.7 billion from export of NTFP and
their valued added extracts. (Ganguli, 2007)
Gross value : A

Source :MOSPI
Some Examples…
A bundle of 50 Sal(Shorea robusta) leaf plates which
is procured at source in Orissa, India, at less than
Rs.12 (US $ 0.3), is exported from Kolkata at Rs.932
(US $ 23).Satapathy (2001)

The Sal resin procured at Rs.20 (USD 0.50) per kg is
sold at Rs.80 (USD 2.00) per kg.

Delhi price for dried jatamansi rhizome was US$2.26
per kilogram, gatherers in Humla, Nepal received just
US$0.36 per kilogram (16%). (Hyman, )

There were at least four levels of intermediaries
between the gatherers and Indian processing
NTFP Policies

 NTFP-based forest management
(National Forest Policy, 1988, Government of India, JFM )

 NTFP rights
(1990 circular on Joint Forest Management (JFM)
{The Panchayat (Extension to the Scheduled Areas) Act, 1996 }

Decentralizing and devolving NTFP trade
(2000 Forest policy)
NTFP market has been highly unstable

Dominance of traders and unethical trade practices

Imperfection in flow of market information,

Lack of processing and storage facilities,

Absence of market regulations and marketing

Channel etc

Effective Monitoring and Rules for NTFP Trading

Primary collectors deal in the market at individual
Possible Solutions For NTFP

Creating Proper Institutional Framework
and Collective Action through proper

State Managed???
Community Managed???
Example: ORMAS in Orissa
Rajas Sangh in Rajasthan
Lamps in West Bengal
MP State NTFP Federation
Successful Case Studies and Models

 Nepal Model of Forest management
 Vasundhara Model of Collective Action
 Seva Mandirs approach through FPC
 Jan Chetena initiative at sirohi District
Institutional Framework

Statutory Bodies
Animal Welfare Board of India (AWBI)
Central Pollution Control Board (CPCB)
Central Zoo Authority (CZA)

qNAEB, set up in August 1992
qresponsible for promoting afforestation,tree planting, ecological
restoration and eco-development activities in the country

National Afforestation Programme (NAP) Scheme: At A Glance
qIntegrated Afforestation and Eco-development Project Scheme(IAEPS)
qArea Oriented Fuel wood and Fodder Project Scheme (AOFFPS),
qConservation of Non-Timber Forest Produce including Medicinal Plants
qAssociation of ST and Rural Poor in Regeneration of Degraded Forests
qSamnavit Gram Vanikaran Samridhi Yojana (SGVSY)
Operation of NAEB
implemented through a 2-tier structure of Forest
Development Agency (FDA) at the forest division level
and Joint Forest Management Committee (JFMC).

FDAs are registered under the Societies Registration
Act. JFMCs are registered either with the Forest
Department or under Statutory provisions.

The structure of FDAs and JFMCs also caters to the
gender concerns, whereby women membership to the
extent of 50% has been made mandatory in these
bodies. Members of Schedule Castes and Schedule
Tribes are the focus group in JFMCs.
so far
Activities undertaken
715 FDAs have been operationalised so far at a cost of
Rs. 1,514.79 Crores to treat a total area of 9.23 lakh

so far 19 jhum projects have been sanctioned in NE
States and in Orissa in 2008-09.
Other Projects
JBIC/JICA: Orissa Forestry Sector Development Project

World Bank Forestry Project in the states Like
• Uttarpradesh
• West bengel
• AP(Andhra Pradesh Community Forest
Management Project (APCFMP)
• Tamil Nadu
Various Forest Acts in India
q1971(Wildlife Protection Act)
qOpposi ti on to the Act
q1980(Forest Conservation Act)
q1988( Forest Policy) qT V Adve r ti se ment s A gainst

qCri ti ci sms of the Act by
q2006(Forest Rights Act) Fore st Ri ghts Su ppor ter s
qTitle rights - i.e. ownership
qUse rights qEligibility Crit eri a
qRelief and development rights qSecti on 4(2) of the Act
qForest management rights
Current Debate
Ownership : JFM Vs CFM(Forest Act 2006)

Forest Cover: Actual Forest Vs Recorded Forest

Regulation : MSP vs. Price Discovery

NTFP Products : Nationalized product( Tendu Leaves) Vs Other

Policy : Industrial Plantation Vs Community Forestry

Solution To shifting Cultivation????