Eucalyptus+in+Y.Nagar

7/25/2019 Eucalyptus+in+Y.Nagar

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CHAPTER - III

TIMBER TRADE AND MARKET

India has about 16% of the worlds population. The geographical area accounts for

2.47% and however, the forest area is onl 1.!% of the worlds forest. " huge hu#anpopulation, coupled with #ore than $ #illion of livestoc&, e'erts i##ense pressure onits natural resources, including forests. (atural forests cannot fulfill the ti#ber andti#ber product de#and, which is increasing due to the increase in the living standards.(aturall people have to #eet their de#ands partl fro# the trees outside thegovern#ent forests and partl b i#porting wood.

3.1.1. Wood and Articles of Wood and Wood Carcoal

The details regarding the articles of wood and wood charcoal is available in "nne'ure.)ro# the list given it could be seen that there is a nu#ber of ite#s included in the ter#

as wood. *owever for the purpose of the stud we will #ainl deal with ti#ber in thefor# of round logs particularl for the price trend. The data used for this purpose arelargel those collected fro# various secondar sources particularl fro# )orest+epart#ent of u-arat.

3.1.!. Prod"ction and #"$$l% of Wood fro& te Pri'ate (ields

" siable nu#ber of trees grown out side the legall constituted forest areas, such asboundaries of agricultural fields, rivers, roads, canal ban&s and bloc& plantations overnon/forest lands are generall ignored while reporting production statistics.

" substantial proportion of the increasing de#and for ti#ber is #et b this source,which is neither reported nor recorded in the countr. The suppl of wood fro# treesoutside the forest areas is regulated under different acts operated in different states.

3.1.3. Prod"ction of Ti&)er in India

"s per the report of the International Tropical Ti#ber 0rganiation, a 243 theproduction trend of ti#ber product is given in Ta)le 3.1. This is including theo#pounded "nnual rowth 5ate "53 during 11/2. "s per the report the"5 has been used to capture the production trend for substantiall longer period ofti#e ignoring ear/to/ear fluctuations. The table clearl suggests the growth in theround wood.

It would be inferred fro# the table that e'cept for round wood both coniferous and nonconiferous3 and plwood, all other categories of wood products have been #ar&ed withnegative growth rate as presented b "5 over 11/2.


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Ta)le3.1* Prod"ction of Ti&)er +,,, c")ic &eter

Ite& 1//1 1//0 1// 1//2 1// 1/// !,,, CA4R1//1-!,,,

5oundood

1$$ 1686 114$ 11$4$ 114$4 11$16 11$4 1.$4

5oundood (

2$67!2 27$61$ 8862 841 8$7 8667 87$! 2.4

Indu. 5ound

276 2776 2777 272 2686 2687 2$88 /.7

Indu. 5ound(

21782 2211$ 2214 222$ 21812 241 1$! /1.7$

Indu. 5ound

2$ 2$ 12 12 12 12 11 /!.72

Indu. 5ound

146 146 72 72 72 1$72 6! /!.8

9eneer 2$24 7 16 1$ 1$ 82$1$ 1$ /$.:lwood 2$ 217 812 828 881 82$ 814 2.$6Source: FAO Yearbook, Forest Products, various issues and updates

The do#estic production trend is also increasing Ta)le3.!.3.

Ta)le 3.!* Wood Prod"ction Trend in India 1/, 5 1//0

Partic"lars Prod"ction +&illion C")ic Meters

1/, 1/3 1//, 1//0

5ound wood Total 212.1 287.7 278.7 24.

:ulp wood 12.4 21$.6 24.8 26.2

Industrial wood 1.7 22.1 24.4 24.!

;hare of saw< pl logs 1$.2 16.7 1!.4 1!.4

;hare of pulpwood< :article 1.2 1.2 1.2 1.2

Source: FAO (1996) (quoted in NFP, 1999)!

3.1.0. I&$ort of Ti&)er

overn#ent of India allowed the i#port of ti#ber under =0pen eneral >icense? in the

ear 16 solel for #eeting the shortage of wood and to reduce pressure on thenatural forests. The detailed infor#ation on the i#port of wood is available with the+irector eneral of o##ercial Intelligence and ;tatistics, under the inistr ofo##erce, overn#ent of India.

3.1.6. Cons"&$tion of Ti&)er


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It is worth reviewing the consu#ption trend of the ti#ber products, which is presented infollowing tables. "s in case of #ost of the products, reliable data was not available priorto 16. *owever, fro# the report of the International Ti#ber Trade 0rganiation thefigures are @uoted. These consu#ption trends have been given in the tables Ta)le 3.3.

The consu#ption trends of wood products in India do not see# to confor# to the trendobserved globall. ost of it is a derived data rather than the actual. The consu#ption isco#puted b the assu#ption that consu#ption A production B i#port C e'port... Theproduction in ter#s of the )orest +epart#ent is the #aterial produced in the forest afterfelling of trees. Dut all such production does not reach the sale depots ar&et3.oreover as alread #entioned above the #aterial obtained fro# the private sourceand that re#oved illegall is not accounted in the production. Therefore the #aindifficult is the reliabilit of the ;econdar data.

Ta)le 3.3* Trends in Cons"&$tion of Ti&)er Prod"cts +7,,, C")ic Meter

Ite& 1// 1//2 1// 1/// !,,,Industrial 5ound ood 2777 2!21 2!7 826 2!7

Industrial 5ound ood ( 287 2827! 22722 22111 218

;awn wood 1218 126 128 12$ 111

;awn wood ( 7177 71!6 71 714 6!8

9eneer 16 17 1 1! 2

:lwood 812 828 881 82$ 814

3.1.. Re8"ire&ent of Ind"strial Wood

The #a-or sectors of do#estic consu#ption of ti#ber are housing and furniture#anufacturing. The )orest surve of India in their stud ETi#ber and )odder fro#)orest, 16 pro-ected the de#ands for 21 and 26 Ta)le 3.03.

Ta)le 3.0* Pro9ections for Ti&)er Cons"&$tions +Million C")ic Meter

(Source: FS" #i$ber % &odder &ro$ &orests'1996)

3.1.2. Pro9ection of Prod"ction: De&and and #"$$l% )% (#I

#.N. Cate;or% of "se


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The stud has also indicated ti#ber production for the ear 22 and 26 based onthe production figures of 1$ Ta)le 3.6.3.

Ta)le 3.6* Ti&)er Prod"ction +Pro9ections +Million C")ic Meter

#o"rce 1//6 !,,1 !,,)orests 28 26 2

:lantations 1 11 18

)ar# )orestr 81 86 4

Total 0 23 !(Source: FS" #i$ber % &odder &ro$ &orests '1996)

);I had carried out a de#and/suppl e'ercise in respect of ti#ber, fuel wood andfodder fro# the forests of India. Dased on the results of field studies conducted b );I,the findings are su##aried in Ta)le 3..

Ta)le 3.* De&and and #"$$l% of Wood +Million C")ic Meter

Partic"lars 1// !,,1 !,,

ood re@uire#ent for housing, furniture,agriculture i#ple#ents

64 78 !2

0utput fro# forests 12 12 12

0utturn fro# plantations, social forestrsche#es and other wood lots

41 47 $8

Deficit 11 10 12

"s #entioned earlier, there is a wide deficit between availabilit do#estic suppl3 andre@uire#ent de#and3 of ti#ber in India and this deficit is li&el to increase in the future,

especiall for tropical hardwoods. There are several reasons for this e'isting andenvisaged deficit, which are briefl e'plained below.

3.1.. Reasons for te Deficit of Ti&)er

Though India is the worlds seventh largest countr, in ter#s of area it hosts onl 1.! percent of the worlds forests. The issue of phsical restriction in the suppl of tropicalwoods has been given due priorit in the Tenth )ive/Gear (ational +evelop#ent :lan.The overn#ent of India has for#ulated a (ational )orestr "ction :lan ()":3 toincrease the forest


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decades, but its i#pact has been li#ited. "ll these things act as li#iting factors forincreasing the suppl of wood to #eet the growing de#ands of various end use sectors.

"ctual ground level surve with the help of I; technolog b );I to identif large tractsof wastelands is et to co##ence and the polic shift to involve private industr in

degraded forest areas is et to ta&e place. "nother e'a#ple is the populist decision li&eban on green felling in several states. This decision has adversel affected the suppl ofwood to #eet the local needs. The ;upre#e ourt of India has categoricall stated thatthe forests should not be wor&ed without approved #anage#ent plans. In the absenceof #anage#ent plans for a #a-or part of the forests in the countr, the suppl fro#natural forests with sustainable harvest is unli&el to increase in the i##ediate future.

3.1./. E=$ort of Ti&)er

The e'port of ti#ber is ver s#all. It #ainl consists of wood articles or the value addedproducts of wood li&e decorative furniture, wood handicrafts, wood wor&s of

sandalwood, rosewood, walnut etc. The e'port of round wood is al#ost negligible.

The consu#ption of ti#ber and ti#ber products is increasing because of the increase inthe population and urbaniation. The increase in the standard of living is also a factorfor the increased consu#ption. 0n the contrar, the recent trend in the production ofti#ber is showing a declining trend due to the intervention of the ;upre#e ourtresulting in the conservation oriented forest #anage#ent practices and even banningthe felling in so#e areas. The ulti#ate result is the increase in the i#port of the ti#ber.an a ti#e prices of do#estic ti#ber are #ore than the i#ported one due to the e'traoverhead charges and ta'es over the do#estic #aterial.

3.1.1,. Prices of Ti&)er

ar&et stud of an product re@uires going in details about the suppl, de#and and theprice structure and its trend over a ti#e fra#e. The individual person does not #uchbother about de#and and suppl. *e is #ore interested in the price of the co##odit.The discussion #entioned above is at the #acro/ level. hat concerns the individualperson who is either a supplier or buer and the producer is the current price of theco##odit in the #ar&et. "ll these criteria are also applicable to ti#ber. In fact, the)orest +epart#ent has the responsibilit for this. Fnfortunatel, there is no sste# of#ar&et intelligence regarding ti#ber prices within the ;tate )orest +epart#ents. Therecord of the prices #aintained b the depart#ent has a li#ited ob-ect of preparing theupset prices for selling the ti#ber in the ne't auction. The individual is absolutelunaware about the current prices of different &inds of ti#ber.

3.1.11. #o"rces of #"$$l% of Ti&)er

ood is co#ing in the #ar&et fro# i3 overn#ent forests ii3 fro# private areas iii3fro# I#port and iv3illegal illicit re#oval of trees fro# forests. The #aterial fro# theprivate areas and illegal re#oval fro# forest goes directl to the saw #illers who do not


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&eep an record of the @uantit as well as the prices. This has alread been e'plainedearlier. "bout the i#ported ti#ber the prices are based on the international #ar&et.There is no organied association of traders trading in the i#port of ti#ber. It is verdifficult to get the at hand secondar data about the prices. " special arrange#ent willhave to be #ade to &now the price structure of the i#ported ti#ber in do#estic and the

retail #ar&ets.

3.1.1!. A'aila)ilit% of Price Data

The onl data regarding sale of @uantit of ti#bers and the prices for the differentspecies is available onl with the forest depart#ent, of those ti#bers which are sold bthe#. In fact ever forest division has a sale depot where auctions are conducted for thesale of #aterial harvested in their division.

3.1.13. >ariation of te Prices of Ti&)er

The prices of ti#ber of different species are different as the @ualit varies with thespecies. There is variation within the logs of sa#e species as per its grade and sie ofthe log #easured b its girth and the length. onsidering all these factors that influencethe prices the sale depots are to be considered to #anage the sale depots and conductsales in public auction. The entire process of the depot #anage#ent will be discussedin the ne't chapter.

3.!. #tat"s of (orest Reso"rce* 4"9arat

The state of u-arat ca#e into e'istence through the division of the old state of Do#ba

on 1

st

a 16. ;ituated on the est oast of India the state occupies 1,6,24 s@ area, which co#prise $. % of the total geographic area of the countr. u-arat fallsbetween 211 ( to 247 ( latitude and 6!4 H to 744 H longitude.

"d#inistrativel, the state is divided into 2$ districts, 226 talu&as and 1!, 22! villages.Total population is $.6 crore as per 21 census3 and livestoc& population is 1.!6crore 17 esti#ation3. u-arat has the longest coastline a#ong all the states of 1,668. It is a ver i#portant state fro# sea trade and industrial point of view too.

3.!.1. (orests of 4"9arat

0wing to its varied geographical and cli#atic factors, the state has a vast plant andani#al diversit. u-arat has habitats for big cats, deer and antelope in the for# of openscrub forests and savannah grassland in the ;aurashtra region, and at the sa#e ti#e ithas #oist deciduous forests in the ;outh u-arat region. The little 5ann of Jutch is theho#e of the wild ass, and the long coastlines with varied #arine life and #angroveforest for# a part of the inco#parable plant and ani#al diversit of u-arat.


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u-arat is a forest scarce state, and forests co#prise onl .78 percent of itsgeographical area, out of which onl 4.4 percent can be categoried under denseforests. 0f the 12 bio/geographic ones of India, 4 Dio/geographic ones fall in the stateTa)le 3.23.

Ta)le 3.2* Bio-;eo;ra$ic ?ones of 4"9arat#. N. Bio-;eo;ra$ic ?one Bio-;eo;ra$ic Pro'ince

1. 5ann Kone Jutch/ 8" u-arat 5a-wara/482. ;e#i "rid Kone u-arat 5a-wara/4D

8. estern hat Kone *ill area of estern hat /$D4. oastal Kone estern coastal 5egion/1"

The per capita forest area in u-arat is .$ ha, whereas the per capita tree coveredarea is .4 ha, against the national average of . ha and .7 ha respectivel.

"ccording to the );I 21 report, there is a decline in tree cover of the countr, while inu-arat there is an increase in tree cover."s far as the forest tpes of the states areconcerned, the are classified into four tpes Ta)le 3.3


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Ta)le 3.*)orests of u-arat have been classified under four #a-or tpes.

#. N. (orest t%$e Area@District

1. oist +eciduous)orests

+angs, 9alsad, (avsari, (ar#ada, ;urat andDharuch

2. +r +eciduous )orest 9adodara, :anch#ahal, +ahod, ir, irnar,unagadh

8. Thorn )orests "#reli, 5a-&ot, Dhavnagar, :orbandar, Jutch,;urendranagar, Danas&antha, ;abar&antha,ahesana

4. oastal, Tidalangroove )orests

Jutch and a#nagar

3.!.!. Moist Decid"o"s (orests

In these tpes of forests so#e tree species shed their leaves during winter, while so#ere#ain evergreen throughout. The occur between 1$ to 2 ## rainfall one.

Trees do not attain the canop height as in the case of evergreen forest. These tpes offorests are found in +angs, ;urat and 9alsad districts. o##on trees found in this tpeof forest are Tea&, ;adad, *aldu, Jala#, etc.

3.!.3. Dr% Decid"o"s (orests

In these forests tpes al#ost all the trees shed their leaves during winter. ;uch forestare found between 8 to 12 ## rainfall one, i.e. entral u-arat, ;aurashtra, ir,irnar and Darda. Trees in such forests attain heights less than those in oist+eciduous forest. o##on species are Tea&, ;adad, Jha&hro, ;i#lo, ahudo, Jhati,

"#li, etc.

3.!.0. Torn (orestsThorn forests are found in *ingolgarh sanctuar and in certain areas of ir, and #ost ofthe areas of ;aurashtra and Jutch, where rainfall is ver less ranging fro# 2$ to 7##. Trees attain ver s#all heights thorn. o##on species are Daval, orad and*er#o.

3.!.6. Coastal: Tidal and Man;ro'e (orests

a-or area of #angrove forests of u-arat is found in the ulf of Jutch. These arespecial tpe of forests that in the tidal one, the #ain characteristics being that theplants have pneu#atophores breathing roots3. ain species are :ilu, ;aru and

"vecenia.

3.!.. (orest t%$es accordin; to Re'ised Classification

Ta)le 3./*The details of tpes of forest as per the revised classification are given below

#. N. (orest T%$es cc"rrence

1 oist +eciduous )orests +angs and 9alsad +istricts2 ;lightl oist Tea& )orests ;urat, Dharuch and (ar#ada +istricts.


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8 +r Tea& )orests 9adodara, :anch#ahals and +ahod+istrict and +rier parts of Dharuch +istricts.(orth and Hast part of ;abar&antha +istrict

4 9er +r Tea& )orests :anch#ahals and +ahod +istricts. ir andirnar "rea of unagadh +istrict.

$ +r +eciduous ;crub )orests 9adodara, :anch#ahals and +ahod

+istricts. Hastern ir falling in unagadh,5a-&ot, "#reli, Dhavnagar, Danas&anthaand ;abar&antha +istrict. Jutch< :atan3, santalpur, 5adhanpur, sa#i, *ari-

6 Tropical +r +eciduous )orests andhinagar, Jheda, ehsana districts

7 ;ub/tropical +r +eciduous )orest estern and ;outhern part of ;abar&antha+istrict

! +r +eciduous )orests 9adodara, :ancha#ahals part of;abar&antha +istrict. ;outhern part ofDanas&antha +istrict

+r i'ed deciduous L tropical)orests

Hast, (orth L est part of Danas&antha+istrict

1 +esert Thorn ;crub )orests rass >and 0ccurring in the ;aurashtra:eninsula. (araan ;arovar hin&ara;antuar in >a&hpat Talu&a of +istM Jutch

11 ;avannah )orests Jutch and a#nagar +istricts.

3.3. #tat"s of (orest Reso"rce* Har%ana

*arana ;tate has 8$.66 la&h ha !1%3 of land under agriculture, #ostl with intensivecultivation. *owever, the recorded forests account for onl 1.$6 la&h ha 8.$2%3, while6.68% of the geographical area is under forest and tree cover "non#ous, 283. ThusTrees outside )orests T0)3 cover 8.11% of the geographical area. It is also interesting

to note that in *arana the standing volu#e of wood in non/forest area is nearl 7 ti#esthat of the esti#ated volu#e in forest areas. It is hoped that this #a be a harbinger ofproduction of wood fro# non/forest areas in co#ing ears "non#ous, 173.

;uppl of generall i#proved planting stoc& of :oplar and Hucalptus supported withtechnical e'tension services encouraged the far#ers to adopt agro/forestr as anecono#icall attractive land use sste# in *arana. 5ead #ar&et for the high @ualitwood fro# agro/forestr plantations was provided b pl wood< pl board units andpaper #ill. rowing #ar&et de#and for far#/grown wood b industries has been a#a-or facto in continuous e'pansion of intensivel #anaged agro/forestr plantations inthe state. There is horiontal integration of wood/based industries in the state C using

far# grown wood. This s#biotic relationship helped growth of agro/forestr as well aswood/based industries.

3.3.1. Re8"ire&ent of Wood-)ased ind"stries

There are $!6 wood/based industries in *arana state including one large integratedpulp and paper #ill and 67 veneer and plwood units. The availabilit of far#/grownwood, s&illed labour and infrastructure have led to growth of plwood and veneer #ills


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fro# ! units before 1! to 67 units at present. Decause of the de#and for wood bthese units, far# forestr plantations have also constantl e'panded thereb increasingthe tree cover in the state. There are 481 saw #ills and !! other wood Cbased units#a&ing furniture, doors, windows, flush/doors, &atha, #atch bo'es, door fra#es, spoonstic&s etc.

The total re@uire#ent of eucalptus, poplar and #iscellaneous species b the wood/based units re@uiring licenses in the ;tate is 2.$ la&h cu# annuall "non#ous,263. a-orit of the saw #ills also use i#ported logs of tea& for durable construction.oreover, #an s#all saw #ills onl reconvert sawn sleepers into battens, plan&s andother finished sies re@uired b the societ.

3.3.!. Wood $rod"ction

#tate (orests

"ccording to the wor&ing plans, nearl 1 la&h cu# of wood of Hucalptus and . la&hof other species li&e "cacia, :rosopis, ;hisha#, (ee#, a#un and "ilanthus areavailable which #eans, the sustainable wood production fro# state forest is 1. la&hcu# per ear "non#ous, 263.

Co&&"nit% ands

*arana )orest +epart#ent has underta&en an a#bitious progra##e of plantations onpanchaat


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Ta)le 3.1,* Ann"al Wood Prod"ction +in la c"&

#l.No.

#o"rces #$ecies Total

E"cal%$t"s Po$lar ter#$ecies

1 ;tate )orests 1. . . 1. 6

2 o##unit>ands

1.12 . 2.17 8.2 11

8 )ar# >ands $.7 14.4 4.$2 24.$8 !8

Total .13 10.,0 .2! !/.2! 1,,Or sa *+ ak- cu$ per ear (Anon$ous, .++6)

3.3.3. Wood De&and-#"$$l% Balance

The overall de#and of the wood/based units in the state of *arana re@uired to obtainlicenses is 2. $ la&h cu# per annu#, while present sustainable annual supplpotential is 8 la&h cu#. Thus *arana has surplus wood resources even after #eeting

total de#and of e'isting wood/based industries on sustainable basis. D far the largestcontribution !8.% 3 to wood supplies is #ade b intensivel #anaged far# forestrplantation of :oplar and Hucalptus. That is followed b contributions fro# plantation onco##unit lands 11%3. *owever, because of s#all area under state forests, thecontribution to wood supplies fro# state forests is -ust 6% of the total wood production.


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Decause of localiation of plwood industr around Ga#una (agar, ancillar industriesli&e #anufacturing peeling lathes and peeling &nives have also grown. "s plwood andpaper #eet essential needs of societ, countr saves huge outflow of foreign e'changeindirectl because of local processing and value addition b industr. Decause #ost of

these #ills are supported b far#/grown wood, far# forestr plantations contribute toenviron#ental a#elioration and indirect conservation of bio/diversit rich natural forests.This is a win/win situation for all sections of societ including conservation of forestresources. oderniation and technolog up/gradation of e'isting units andestablish#ent of new units based on conte#porar technolog #a&ing international@ualit products can #a'i#ie aforesaid benefits to the societ and our countr. Thereis also urgent need to #a&e ti#ber trade transparent through regulated ti#ber #ar&etsto ensure fair co#petition, enhance revenues for the state and stop e'ploitation offar#ers. ith these i#prove#ents, Ga#una (agar success stor is worth e#ulation bothers and the countr should replicate this e'a#ple to develop #an such plannedcentres of e'cellence through integrated develop#ent of agro/forestr and wood based

industries supported with innovative policies.

3.3.6. Present #"$$l% Cain

:laers in the ti#ber #ar&et of *arana can be placed into three broad levels.

e'el 1* Pri&ar% #"$$liers

ost of the eucalptus and poplar available in the wood #ar&ets are obtained fro# thelands of the far#ers. The tree crops raised on the co##unit lands is sold through

auctions. ood fro# forests and plantations on govern#ent lands are auctioned b theforest depart#ent "non#ous, 13

e'el !* Inter&ediar% B"%ers@sers

ontractors purchase trees fro# far#ers as the find it difficult to arrange for theharvest and transportation of their tree crop. The contractors charge about $% of their#ar&et price of the produce. ;o#eti#es far#ers loose heavil as contractors #a&e anunder assess#ent of the tree crop of the far#er. o##ission agents


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pac&ing and storage of food grains and fruits. )I, *")H+ and fruit traders purchaseswooden crates and bo'es. The wooden construction #aterial of eucalptus and poplarare #ostl supplied to the building constructors b the ti#ber #erchants and saw #ills.The bric& &ilns also use eucalptus wood as firewood in a li#ited wa. The paperindustr at Ga#una (agar is the onl #ill, which uses eucalptus on a large scale.

"part fro# eucalptus, veneer waste and saw #ill waste are also bought b the paper#ills. )urniture shops also use s#all @uantities of eucalptus. Hucalptus is also usedb sugar #ills and other establish#ents li&e eateries and ba&eries.

3.3. eaa;es in Maretin; #%ste&

o##ission agents and contractors are the two inter#ediaries between far#ers andend users who do not contribute to the value addition of the wood and et the pla#a-or role in #ar&eting sste#. ;ince the do not contribute in the value addition of thewood, their presence in the sste# result in heav lea&age in the profit #argins of thefar#ers. The esti#ated loss of revenue to the far#ers as $% service charge to the

contractor is about 5s. 22. crores, while revenue loss to the far#ers #a be actuall#ore due to under esti#ation b the contractors. The total loss to the far#ers on theabove accounts is about 5s. 87.6 crores in 1 "non#ous, 13.

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Eucalyptus+in+Y.Nagar