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CHAPTER 1. INTRODUCTION

The forest products industry is one of the worlds largest industrial sectors, with reported annual sales o

US$950 billion and a gross value-added estimated at about US$354 billion. World trade in fores

products is valued at approximately US$200 billion, and has quadrupled over the last three decades.

The forest products industry makes an important contribution to the standard of living in developed an

developing countries alike. Employing over 13 million people in nearly 200 nations, the forest product

industry is an economic engine and a vital part of the global environmental and social fabric. In many

developing (and developed) countries, forestry and forest products processing is important for economi

development and the livelihood of rural communities. People depend on the goods produced by th

worlds forest products industry on a daily basis. The forest products sector includes products such a

wood (logs, lumber veneer, panelling and engineered wood products, flooring, decorative items, furnitur

parts and accessories), and pulp and paper products (all mechanical and chemical pulp, paper an

paperboard packaging such as kraft paper and linerboard and folding boxboard, newsprint, printing an

writing paper, specialty paper, and sanitary products). Forest products are derived from one of th

worlds few renewable resources and supply the base material for a significant number of other key worl

industries. Forests play an important role in the socio-economic development of a country like India

They are rich sources of energy, housing, firewood, timber and fodder and they provide employment to

large section of the rural population. Demand for forest products and services in the country is increasin

with rapid economic growth, industrialization and increase in population.

The recorded forest area in India is about 76.5 million ha (23% of total land mass). However, the actua

forest/tree cover is just about 19% of the total geographical area. The per capita forest area in the countr

is 0.08 ha as compared to the world average of 0.64 ha. The total removal of fuelwood from forestland i

estimated at 270 million tonnes annually. During the last two decades, India has witnessed annua

depletion of forest cover at a rate of 235 km2. The consumption of fuelwood and timber in the countr

was 23.5 and 40 million m3, respectively against the availability of 40 million m3 and 15 million m3

from the forests.

A study was carried out to: i) assess the status of forests in India, ii) analyse the trends in production an

consumption of forest products and iii) estimate demand and supply of forest products in future.

The results of the study reveal that the area under forests registered a decline over the period. The inter

state distribution of forest area per capita indicates that Arunachal Pradesh state ranked first with 7.93 h


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of forest per person. The trend in relation to production of forest products exhibited a slower growth rat

than its consumption. The forecasts of demand and supply showed a deficit of all forest products excep

for wrapping, packaging paper and paper board. Thus, there is a need for an increase in area under fores

of up to one third of total geographical area as recommended by the Indian Forest Policy to meet th

requirement of forest products as well as the protection of ecological assets.

1.1 FORESTRY IN INDIA

Dense forests once covered India. As of 2010, the Food and Agriculture Organization of the Unite

Nations estimates India's forest cover to be about 68 million hectares, or about 20 percent of the country

area. In qualitative terms, however, the dense forest in almost all the major Indian states has been

reduced. Forest degradation is a matter of serious concern.[1] In 2002, forestry industry contributed 1.

percent to India's GDP. In 2006, the contribution to GDP dropped to 0.9 percent, largely because of rapi

growth of Indian economy in other sectors and Indian government's decision to reform and reduce importariffs to let imports satisfy the growing Indian demand for wood products. India produces a range o

processed forest (wood and non-wood) products ranging from sawnwood, panel products and wood pul

to bamboo, rattan ware and pine resin. India's paper industry produces over 3 million tonnes annuall

from more than 400 mills, which unlike their international counterparts, mostly uses the more sustainabl

non-wood fiber as the raw material. Furniture and craft industry is another consumer of wood.

India's wood-based processing industries consumed about 30 million cubic meters of industrial wood i

2002. An additional 270 million cubic meters of small timber and fuelwood was consumed in India

Some believe the causes for suboptimal wood use include government subsidies on wood raw material

poorly crafted regulations, and lack of competitive options for the rural and urban Indian consumer. Indi

is the world's largest consumer of fuelwood. India's consumption of fuelwood is about five times highe

than what can be sustainably removed from forests. However, a large percentage of this fuelwood i

grown as biomass remaining from agriculture, and is managed outside forests. Fuelwood meets about 4

percent of the energy needs of the country. Around 80 percent of rural people and 48 percent of urba

people use fuelwood. Unless India makes major, rapid and sustained effort to expand electricitgeneration and power plants, the rural and urban poor in India will continue to meet their energy need

through unsustainable destruction of forests and fuel wood consumption.

India's dependence of fuelwood and forestry products as a primary energy source not only i

environmentally unsustainable, it is claimed to be the primary cause of India's near-permanent haze an

air pollution. Forestry in India is more than just about wood and fuel. India has a thriving non-woo
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forest products industry, which produces latex, gums, resins, essential oils, flavours, fragrances an

aroma chemicals,incense sticks,handicrafts,thatching materials and medicinal plants. About 60 percen

of non-wood forest products production is consumed locally. About 50 percent of the total revenue from

the forestry industry in India is in non-wood forest products category. In 2002, non-wood forest product

were a source of significant supplemental income to over 100 million people in India, mostly rural.

1.2 RECENT DEVELOPMENTS IN INDIAN FORESTRY

Over the last 20 years, India has reversed the deforestation trend. Specialists of the United Nations repor

India's forest as well as woodland cover has increased. A 2010 study by the Food and Agricultur
http://en.wikipedia.org/wiki/Incensehttp://en.wikipedia.org/wiki/Handicrafthttp://en.wikipedia.org/wiki/Handicrafthttp://en.wikipedia.org/wiki/Incense


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Organization ranks India amongst the 10 countries with the largest forest area coverage in the world (th

other nine being Russian Federation, Brazil, Canada, United States of America, China, Democrati

Republic of the Congo, Australia, Indonesia and Sudan).[5]India is also one the top 10 countries with th

largest primary forest coverage in the world, according to this study.

From 1990 to 2000, FAO finds India was the fifth largest gainer in forest coverage in the world; whil

from 2000 to 2010, FAO considers India as the third largest gainer in forest coverage.[5]

Some 500,000 square kilometres, about 17 percent of India's land area, were regarded as Forest Area i

the early 1990s. In FY 1987, however, actual forest cover was 640,000 square kilometres. Some claim

that because more than 50 percent of this land wasbarren or bushland, the area under productive fores

was actually less than 350,000 square kilometres, or approximately 10 percent of the country's land area.

India's 0.6 percent average annual rate ofdeforestation for agricultural and non-lumbering land uses i

the decade beginning in 1981 was one of the lowest in the world and on a par withBrazil.

1.3 DISTRIBUTION OF FORESTS IN INDIA

India is a large and diverse country. Its land area includes regions with some of the world's highes

rainfall to very dry deserts, coast line to alpine regions, river deltas to tropical islands. The variety an

distribution of forest vegetation is large: there are 600 species of hardwoods, including sal (Shore

robusta). India is one of the 12 mega biodiverse regions of the world.

Indian forests types include tropical evergreens, tropical deciduous, swamps, mangroves, sub-tropica

montane, scrub, sub-alpine and alpine forests. These forests support a variety of ecosystems with divers

flora and fauna.

1.4 FOREST PRODUCE

Forest Produceis defined under section 2(4) of theIndian Forest Act, 1927.Its legal definition include

timber, charcoal, caoutchouc, catechu, wood-oil, resin, natural varnish, bark, lac, myrobalans, mahu

flowers (whether found inside or brought from a forest or not), trees and leaves, flowers and fruit, plant

(including grass, creepers, reeds and moss), wild animals, skins, tusks, horns, bones, cocoons, silk

honey, wax, other parts or produce of animals, and also includes peat, surface soil, rocks andminera

etc. when found inside or brought from a forest, among other things.
http://en.wikipedia.org/wiki/Forestry_in_India#cite_note-faof2010-4http://en.wikipedia.org/wiki/Forestry_in_India#cite_note-faof2010-4http://en.wikipedia.org/wiki/Forestry_in_India#cite_note-faof2010-4http://en.wikipedia.org/wiki/Forestry_in_India#cite_note-faof2010-4http://en.wikipedia.org/wiki/Forestry_in_India#cite_note-faof2010-4http://en.wikipedia.org/wiki/Forestry_in_India#cite_note-faof2010-4http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Forest_Areahttp://en.wikipedia.org/wiki/Barrenhttp://en.wikipedia.org/wiki/Deforestationhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Hardwoodshttp://en.wikipedia.org/wiki/Sal_treehttp://en.wikipedia.org/wiki/Indian_Forest_Act,_1927http://en.wikipedia.org/wiki/Caoutchouchttp://en.wikipedia.org/wiki/Resinhttp://en.wikipedia.org/wiki/Myrobalanshttp://en.wikipedia.org/wiki/Mahuahttp://en.wikipedia.org/wiki/Rock_%28geology%29http://en.wikipedia.org/wiki/Mineralshttp://en.wikipedia.org/wiki/Mineralshttp://en.wikipedia.org/wiki/Rock_%28geology%29http://en.wikipedia.org/wiki/Mahuahttp://en.wikipedia.org/wiki/Myrobalanshttp://en.wikipedia.org/wiki/Resinhttp://en.wikipedia.org/wiki/Caoutchouchttp://en.wikipedia.org/wiki/Indian_Forest_Act,_1927http://en.wikipedia.org/wiki/Sal_treehttp://en.wikipedia.org/wiki/Hardwoodshttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Deforestationhttp://en.wikipedia.org/wiki/Barrenhttp://en.wikipedia.org/wiki/Forest_Areahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Forestry_in_India#cite_note-faof2010-4http://en.wikipedia.org/wiki/Forestry_in_India#cite_note-faof2010-4


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Forest produce can be divided into several categories. From the point of view of usage, forest produc

can be categorized into three types: Timber, Non Timber and Minor Minerals.Nontimber Forest Product

[NTFPs] is also known as Minor Forest Produce [MFP] or Non Wood Forest Produce [NWFP]. Th

NTFP can be further categorized into Medicinal and Aromatic Plants [MAP], oil seeds, fiber & flos

resins, edible plants, bamboo, reeds and grasses.

Timber

OFDC trade timber both in round as well as in sawn forms in different dimension from their specified

depots. Once in every month there is auction of round timbers from its each depot through genera

auction.

Kendu Leaves

Orissa is the third largest producer of Kendu leaf in India. The uniqueness of kendu leaf in Orissa i

because of its specification of Color, Texture, Size and Body condition of the leaf.

Bamboo

The collection and marketing of Bamboo from the natural forest is done either by OFDC or through th

RMP (Raw Material Procurer) as per the decision of the Government to regulate the collection and trad

of Bamboo.

Sal Seed

Sal seed is a nationalized product since 1973 and is one of the important Produce obtained from Sa

(ShoreaRobursta) tree, which is predominantly available in Orissa.

Honey

OFDC is involved in collection, processing and trading of honey from natural forest with an assurance o

pure and genuine in quality.

Medicinal Plants

With the financial aid of National Medicinal Plants Board, Government of India, 16 projects fo

promotional activities are currently running in Orissa.
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NTFP

Non Timber Forest Products (NTFP) refers to all biological materials other than timber extracted from

natural forests for human and animal use.

Rubber

OFDC is having rubber plantation and processing unit in Baripada & Bhubaneswar zone, since 2003

OFDC is extracting the rubber from the matured trees and marketing it.

Pickle & Squash

OFDC is manufacturing and marketing high quality, delicious pickles such as Mango Pickle, Mixe

Picklefree from preservatives.

Plywood

The plywood industry at kuikeda near Saintala of Bolangir District was incorporated during 1983 an

started commercial production during the year 1986-87.This unit continued its operation up to 1992-93.

Cashew & Spice

OFDC Ltd. have raised cashew plantation over an area of 18704.99 ha. from 1978-79 to 1992-93 i

Bhubaneswar and Berhampur Division. Out of which pure cashew plantation over an area of 11,053.9

ha.

Biodiesel Plant

Biodiesel is the name of a clean burning alternative fuel, produced from domestic, renewable resources

Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create

biodiesel blend.

1.5 FOREST PRODUCTS TRADE AND MARKETING

The forest products industry has vigorously opened up for global trade because the prevailing busines

model is built on capturing comparative advantages anywhere they abound at the right cost. Many

emerging countries possess valued forests, aspire for more processing industry and employment, and see


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added value to their raw materials. International investors in the forest products industry are their willing

allies but they want to ascertain predictable macroeconomic conditions, transparent fiscal incentives an

abundant labourand preferably the rule of law and a sustainable wood supply to start with. A dynami

domestic market is nowadays becoming an important factor in attracting foreign investments, and man

emerging economies harbour bustling urban markets short of high-quality forest products.

Increasing trade in forest products has supported economic growth and eradication of poverty in

number of emerging countries. But trading out of poverty has proven difficult and it has led to furthe

marginalization and events of misconduct in some countries. Safeguards must be firmly put in place t

ensure that trade is based on legal and sustainable forest use, fair labour conditions and equitable sharin

of benefits. Good governance is essential in setting the rules for sustainable production and trade.


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CHAPTER 2. FOREST CERTIFICATION AND SUSTAINABLE FOREST

MANAGEMENT

International consensus on better management of forests and forest resources for their sustainability an

enhancement of related social and ecological benefits gave the concept and hence global commitmen

towards SFM. Following, to address to the economics and market forces, certification of forests evolveas a promising tool. Certification of forests or Forest Certification gives the consumers the right t

question the social and environmental accountability of the management practices in the forests henc

contributing towards the cause of certification. Approaches towards SFM encourage applying an

implementing best practices as well as provide trading incentives. Certification is a methodolog

providing incentives for trading of forest products, and hence encouraging good practices of fore

management.

SFM for Certification: The standards pre-defined, for performance and hence management practice

of forests, provides a measuring tool for good practices.

Trade incentives: The certified forest products receive a premium in the market hence providin

incentives for management of forests.

2.1 FOREST PRODUCTS TRADE AND MARKETING

The forest products industry has vigorously opened up for global trade because the prevailing

business model is built on capturing comparative advantages anywhere they bound the right cost.

Increasing trade in forest products has supported economic growth and eradication of poverty in a

number of countries.


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2.2 MARKETS FOR CERTIFIED PRODUCTS

Markets for certified products are strongest in Western Europe and USA, and it continues to grow. Fo

instance, Price Waterhouse Coopers predicts an increase in US certified forest products market by 100 to

150% per year (Dixon, 1999). These markets are led by buyer groups of forest product retailers an

traders, especially retail home improvement chains. Lowes and Home Depot in USA, and UKs B&Q

Homebase, Sainsbury and Meyers (members of1995+ Group) are some of the most significan

members of such buyers groups. However, in comparison to American and European market

certification has not gained any meaningful market share in principal Asian markets such as Japan, Kore

and China. These countries are among the leading tropical timber importers (ITTO, 2004).

Although certification relies on a market-driven mechanism, with environmentally concerned consumer

sending price signals through the supply chain to the forest industries and forest managers, it is unlikel

that this consumer signal will occur in the absence of a real commitment by retailers and trader

(Kanowski et al., 1999). Therefore,

the role of retailers and traders is likely to play a key role in future development of markets for certified

products.

2.3 THE WTO AND LABELING (FOREST CERTIFICATION)

There is no official WTO position on certification or Labeling, but it is clear that in general the WTO

prefers voluntary labeling requirements above mandatory one. Any certification scheme that affect

trade is by definition a Non-Tariff Measure (NTM) in WTO terms. However, the question remain

whether it is a non-tariff barrier, and if so, whether it is permitted under WTO provisions. If

certification scheme were to be challenged in the WTO, it would be against a member governmen

and might allege failure to meet obligations under the following WTO Agreements:

Government Procurement

Technical Barriers to Trade (TBT)

Subsidies and Countervailing measures

Sanitary and Phytosanitary (SPS) measures.


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The only areas under discussion among WTO members in relation to Labeling and certification in th

lead up to the Cancun Ministerial are the TBT Agreement and the SPS Agreement. For fores

certification, the TBT Agreement is the relevant WTO Agreement (FERN, 2003). Thus, it is because o

the lack of clarity regarding Labeling and certification within the current trade regime, and because of th

push by the EU to promote environmental issues at the WTO, the last WTO Ministerial in Doha pu

labeling firmly on the agenda of the 5th Ministerial in Cancun.

2.4BARRIERS TO TRADE COMMITTEE, ITS CODE OF GOOD PRACTICE AND LABELING

The Agreement on Technical Barriers to Trade tries to ensure that regulations, standards, testing an

certification procedures do not create unnecessary obstacles to trade. The agreement recognizes

countrys right to adopt the standards it considers appropriate for example to protect human, animal o

plant life or health, for the protection of the environment, or to meet other consumer interests.

In order to prevent much diversity, the agreement encourages countries to use international standard

where these are appropriate, but it does not require them to change their levels of protection as a result

The agreement sets out a Code of Good

Practice for the preparation, adoption and application of standards by central government bodies,

which is applicable to WTO members and open to all non-state standardizing bodies. The Code of

Good Practice requirements include: avoiding duplication, making every effort to achieve nationa

consensus and (wherever appropriate) requiring performance-based standards. Discussions on Labelin

have been held frequently within the TBT Committee. Switzerland, Canada, the EU, Japan and the U

have all submitted papers calling for clarification of the implications of the TBT Agreement for product

Labeling standards (FERN, 2003). For Canada, the situation is clear; it believes that the TBT rules ar

clear and that the TBT or SPS Agreements cover all Labeling requirements. Canada aims to come ou

with a non-paper identifying the key elements of the debate in order to contribute to a structured an

productive discussion of labeling concerns. For Japan the situation is less clear. It wants to deepen th

discussion. Its submission states that there is a gap in WTO requirements for those non-governmenta

bodies that have not accepted the TBT Code of Good Practice, and therefore do not conform to Article

of the TBT Agreement, the Agreement that deals with preparation, adoption and application of technica

regulations by government bodies. According to Japan, all bodies that develop standards should accep

the Code of Good Practice. Furthermore, Japan highlights the TBT provision spelt out in the Code o

Good Practice to specify standards on the basis of performance characteristics, and asks for adoption o

performance-based Labeling requirements (FERN, 2003). It is important to note that in its final report t


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the Cancun meeting the CTE Committee also stressed the importance of the TBT Agreements Code o

Good Practice. Moreover it was recalled that the TBT Committees decision on the principles for th

development of standards provided useful guidance. These principles include: transparency

inclusiveness or openness (that all stakeholders be involved in the development of the standard)

impartiality and consensus, effectiveness and relevance, coherence and whenever possible responsivenes

to the needs and interests of developing countries.

2.5 CERTIFICATION OF NTFPs

Certification is the process of evaluating and labelling products against accepted standards of goo

management. A new development in the certification movement is the certification of Non Timber Fores

Products (NTFPs). NTFPs may be certified based on standards for fair trade, organic production, an

forest stewardship. A wide variety of organisations have developed standards for certification. One mai

objective of these schemes is to ensure NTFPs policies and guidelines for assessment and implementatio

of certification. The other objective is to promote the certification of NTFPs by a means to achieve bette

forest management. To ensure the objectivity of certification, a reputable independent third part

conducts the evaluation. Once certified, a business may promote their business and products as certified

which is often done by using the distinctive logo of the standards setting organisation. Certification o

NTFPs has been possible under variety of schemes. The more important is FSC system doing well for

couple of years and its accredited certifiers are carrying out assessments on NTFP operations worldwide

The most active certifiers in this regard has been SmartWood (www.smartwood.org), based in the Unite

States, which has developed an NTFP certification addendum to their regular forest managemen

standards. These standards have been used as the basis for developing product specific standards. Whil

certification of NTFPs require adherence to the complete set of management standards, and also include

number of specific references to NTFPs. These include:

The need for development of NTFP management standards to be included in any joint fores

management.

The forest is managed to produce a variety of non-timber forest products compatible with sit

conditions and local economic objectives for strengthening the local economy.

Where the manager harvests or has the ability to control the harvest of NTFPs, the rate of harves

reflects best available inventory and productivity data and provides for sustainable production.


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Further, the certification programmes associated with NTFPs is also the most expensive certificatio

programme to implement. In addition, these systems are difficult to apply to informal community-base

NTFP operations that constitute the vast majority of NTFP harvesting. In this regard, this, FS

certification is probably still most appropriate for large-scale industrial NTFP operations or for operation

where timber extraction is the primary focus of the forest management plan.

India is home to an amazing diversity of plants, with over 46 000 plant species recorded to occur there

Many of these species are used for medicinal purposes, with approximately 760 known to be harveste

from the wild for use by India's large herbal medicine industry. There is concern, however, that collectio

methods for many, if not most, of these species are destructive and wild populations declining as a resul

Despite various regulations aimed at protecting plant resources, the destructive and unsustainabl

collection, use and trade of Medicinal and Aromatic Plants (MAPs) pose a major threat to severa

important medicinal plant species in the country. In this regards, it is imperative to look for alternativ

approach to securing the sustainable use of countrys medicinal plant resources. The use of fores

certification as a tool to promote sustainable harvest and trade in medicinal plants could be on

alternative approach for sustainable MAP resource availability (Jain, 2004). Many medicinal plan

species in India occur in forest areas and along with other non-timber forest products (NTFP), fall within

the scope of certification schemes aimed at "sustainable forest management". Other prominent types o

certification scheme relevant to medicinal plants relate to ensuring organic, fair trade and qualit

standards and could be applied both to raw materials and production methods. While some independen

certification exist for fair trade and organic standards for medicinal plants in India, but these are largelyrestricted to teas and other plant products more usually associated with the mainstream food and beverag

industry. The schemes exploring certification options for sustainable forest management were found to b

underway in India. However, no independent, third-party process for certifying the sustainability o

medicinal plant production exists in India. A review of the wider certification climate in India provide

important lessons for the future application of certification to medicinal plants and other NTFP. Som

independent certification schemes are taking root in India, notably in the context of "fair trade"

particularly with regard to certain exported items, such as tea, and rugs. FLO has certified 23 companie

in India as operating in accordance with its Fair Trade Standards and IFAT has several membe

companies in India. Similarly, IFOAM has 29 members and eight associates in India certifyin

production according to organic standards. As in the case of "fair trade", organic certification appears t

be geared primarily toward export markets. (Jain, 2004). Assessments of current practices for medicina

plant harvests and trade, which derive from a long tradition within India, indicate that, even if the marke

conditions were ripe for third party certification, the complex, informal and often opportunistic nature o


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the trade would not be conducive to it. Comparison of practices for collection and trade of medicina

plants in India with NTFP management requirements according to Criteria of internationally recognize

schemes have a wide gap between current management approaches, harvest and trade. Severa

government certification schemes focusing on product quality, environmentally friendly and organi

production exist in India with over 1100 products certified for product quality standards by the Bureau o

Indian Standards and 16000 licenses issued to companies meeting these standards.

Certification for quality management and environmental management according to ISO has also bee

adopted. The Bureau of Indian Standards has adopted the ISO 14000 series as national standards fo

environmental management as voluntary environmental standards. In 1991, the Government launched th

'Eco-mark' scheme aimed at certifying and awarding a special product label to goods meeting specifi

environmental standards. But participation of the companies and recognition by the consumers for thi

environmental initiative has been very less.


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CHAPTER 3. NATIONAL FOREST PRODUCTS STATISTICS

The importance of Forestry Statistics in India was realised in a meeting of The Board of Forestry a

Dehradun in 1925 where it was decided that all provinces would conduct an economic survey of Fores

Resources. Formats for collection of information were designed and circulated and the resultin

information was sent to the Forest Research Institute (FRI) in Dehradun for compilation of an all India

view. Until 1946/47, The British India Government collected only limited forestry information, however

after independence coverage was gradually extended to include forests located in the former princel

states.

In 1958/59, the Directorate of Economics and Statistics (DES) in the Ministry of Agriculture an

Irrigation standardised state forestry statistics collection formats and began compiling national level data

However, the accuracy of data and the timeliness of its collection and compilation were limited b

inadequate mechanisms and checking and analysis was minimal. To overcome these difficulties it wafelt necessary to form a central body to collect and compile forestry information.

In 1965, a Central Forestry Commission (CFC) was set up in the Ministry of Agriculture with th

objective of collecting, compiling and publishing standardised forestry statistics. In 1967 the CFC revise

the standard DES formats and, following comments from the states and other experts in the field, bega

collecting standardised statistics. There was, however, still insufficient organisation for promp

collection, compilation and analysis.

Following creation of the Ministry of Environment and Forests (MOEF), the CFC was reconstituted int

separate Statistics and Utilisation Divisions. During this period the FRI collected basic timber pric

information through its Forest Utilisation wing, and also compiled limited forestry statistics, publishe

through the MOEF as Indias Forests. These activities were discontinued, however, after the post o

Forest Utilisation Officer in FRI was abolished.

Previously, data on different aspects of forestry were collected and stored by different agencies in Indi

but were not held in any single place which created difficulties in projecting a complete picture o

forestry and ecosystem management in India. To centralise information, the Indian Council of Forestr

Research and Education (ICFRE) organised a directorate of statistics in January 1995, under the Forestry

Research, Extension and Education Project (FREEP). The role of this directorate, now called the Divisio

of Statistics, is to collect, collate, process, publish and circulate covering all aspects of forestry at th

national level.


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1

3.1 CURRENT FOREST PRODUCTS STATISTICAL SYSTEM

The Division of Statistics gathers data on production and trade of forest products from State Fores

Departments, IAPMA, FIPPI and the Ministry of Commerce (Figure 1). In addition to production an

trade data information is also received from the Planning Commission and MOEF, the Forest Survey o

India and the Central Statistical Organisation. At present data is received either in hard copy o

electronically via e-mail.

Data collected through State Forest Departments

Forest products information is collated by the State Forest Departments using standard formats reviewe

at the FORSTAT96 national workshop organised by the Directorate of Statistics in February 1996 a

ICFRE, Dehradun. Data from forest ranges, the lowest data collection unit, are determined through

chain of custody system (Box 1). Information from different field offices is compiled at division leve

and transmitted annually to the State Forest Department Head Quarters, where statewide statistics ar

collated and consolidated. The State Forest Departments send data in standard format to ICFRE where

after analysis and discussion with State Forest Departments, it is compiled using Microsoft Excel by th

Division of Statistics. The validity of data is checked at state level with the help of ICFRE institutions.

Figure 1. Inflow of information and data for production and trade of forest products


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1

Box 1. System for Determination of Timber Production.

Production figures from State Forests Departments are collected through the following

system: (i) timber removals are based on marking book records which incorporate species

name and girth over bark at breast height; (ii) all removals are recorded in a felling register

which bears the total volume and number of pieces from each stump; (iii) transport ofremovals is recorded in a transit pass register and in triplicate on transit passes; (iv)

removals are taken to Govt. depots/go downs where a copy of the transit pass is deposited

and receipt indicated on a duplicate copy; (v) in Govt. depot/go downs all incoming

material is measured piecewise and recorded in a depot/go down register; (iv) annual

arrivals at, and disposals from, depot/go downs is reported to Division/state level

authorities annually by the end of June.

Information on different aspects of national forestry is summarised and published in Forestry Statistic

India in the form of tables. To date, editions have covered 1988-94, 1995, 1996 and 2000. Fores

products information covered in Chapter 11 includes paper production (MT), plywood production b

state (m2), annual sawnwood production by state and saw mill (m3), as well as a survey of wood produc

manufacturing units and information on paper industries and their raw material sources. Chapter 1

covers state wise annual production of timber (m3), poles, pulp and matchwood (m3), fuelwood (MT), sa

seeds (MT), tendu leaves (standard bags/MT), gums and resins (MT), cane and rattan (MT), bambo

(no.), grass and fodder, drugs, spices, tannins and other NTFPs (MT).

In most states channels of information flow are not well organised and hence information flow is to

slow. As Government Forests are controlled at the state level, national agencies can only collect data wit

the cooperation of State Forest Departments. Efforts are currently being made to improve the efficienc

of forestry data flow between the state and national levels. To outline the flow of information o

production and trade of forest products in India, the structure and situation in Madhya Pradesh State i

used as an example.

3.2 REVIEW OF TRADE DATA

Comparisons were made between 1990-2000 FAOSTAT forest products import and export data an

figures in the Monthly Statistics of Foreign Trade publication produced by the Directorate of Commercia

Intelligence and Statistics, Ministry of Commerce (MoC).


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Import data

Industrial roundwood. Differences were found between FAOSTAT and MoC figures althoug

there was no clear trend. MoC figures are lower for 1990, 1991, 1992 and 2000 and highe

for1993 and 1999.

Fuelwood. Figures are not available in FAOSTAT for 1992 and 1998. For the years in which

comparisons could be made, MoC fuelwood import figures are lower than FAOSTAT figures.

Wood charcoal. Figures are available in FAOSTAT for 1992 and 2000 whereas MoC figures ar

available for 1993 and 2000. For 2000 the MoC figure is lower.

Sawlogs and veneer logs (C and NC). Figures are not available in FAOSTAT and MoC figure

are only available for 1993.

Plywood. MoC figures not available.

Veneer sheets. FAOSTAT contains no data for 1990, 1991 and MoC figures are not available fo

1994 to 1998. For 1993 and 1999 MoC figures are higher than those in FAOSTAT.

Hardboard. MoC figures not available

Fibre board and particle board. MoC figures are generally lower than those in FAOSTAT.

Export data

Forest products. Figures are available in the FAOSTAT database for 1990-2000. Country figure

are disaggregated amongst different Forest Products groups, which are under different sections o

the World Customs Organisations harmonised system of nomenclature. Therefore compariso

was not possible.

Industrial roundwood. FAOSTAT figures are only available for 1991, 1992, 1999 and 2000 i

which years MoC figures are generally higher.

Wood fuel. FAO figures are available for 1992, 1995 and 1996 whereas MoC figures ar

available for 1991 and 1992 only. For 1992, the MoC figure is lower.

Wood charcoal. For the nine years where data was available for comparison, figures from

FAOSTAT are higher in all except for 1993.


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Sawlogs and veneer logs (C and NC). Comparisons could not be made, as figures are no

available in FAOSTAT.

Plywood. FAO figures are higher than the MoC figures prior to 1993 and lower thereafter.

Veneer sheets. FAO figures are higher than MoC figures throughout the comparison period.

Fibre board. FAO export figures are rather low in comparison with the MoC figures.

Particle board. FAO figures are higher for 1990, 1991 and 1992 but considerably lower in th

latter part of the decade.

3.3 PRODUCTION AND CONSUMPTION OF FOREST PRODUCTS

3.3.1 PRODUCTION OF FOREST PRODUCTS IN INDIA

The production of fuel wood and charcoal witnessed increase at rate of 1.98 percent per annum.

The production of wood-based panels more than doubled in 1981-2010.

3.3.2 CONSUMPTION OF FOREST PRODUCTS IN INDIA

Forest products consumption in India experienced a considerable growth in last two decades. Th

substantial increase in consumption of industrial roundwood indicating 47 percent in period 1981

2000.

Fuel wood and sawnwood consumption grew at growth rate of 2.18 and 6.46 percent for the perio

1970-2000, respectively.

The consumption of paper and paper wood, wrapping, packaging paper and paperboard increas

substantially over the period.

The comparison of actual production and consumption over two periods shows that growth i

consumption of most of forest products is higher than production growth creating demand -suppl

imbalances


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3.4 IMPORT AND EXPORT OF FOREST PRODUCTS


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Comparison With Neighboring Country


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3.5 MINOR FOREST PRODUCTS

Indian forests also supply minor forest products such as canes (rattans), gums, resins, rubber, dyes

tannins, fibres, medicines, katha, insecticides, camphor, essential oils (e.g., rosha grasses, khas an

sandal woods), cooking oils and spices. Tendu (kendu) leaves are used as wrappers for bidis, soap

substitutes such as ritha and shikakai, sola pith and ornamental seeds rudraksha are importan

commercial products of the forests. Lac, honey, wax, tusser or moga silk are obtained from fores


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insects. Feathers, horns, hides and ivory are also other significant forest product (obtained from fores

wild life).

For tribal people forests also provide food (tuber, roots, leaves, fruits, meat from birds and othe

animals).

Export Prospects of Minor Forest Products

A new scheme called Vishesh Krishi Upaj Yojana announced under the new Foreign Trade Polic

by the Ministry of Commerce & Industry, Government of India, provides a host of incentives to boo

exports of minor forest produce and their value-added products.

USA continues to be the largest market for Indian minor forest products. However, in 2006-07

exports to it showed a marginal decline of 0.60 per cent over the previous year when the sam

dropped to Rs 681.89 crore as against Rs 686.00 crore.

How To Meet The Challenge Of Increasing Demands

The use of firewood should be discouraged to reduce pressure on more valuable natural forests. Othe

sources of energy such as biogas, solar energy, etc., have to be provided to supplement practices

A ban or freeze of 15 to 20 years should be imposed on commercial tree fallings in fragile areas o

Himalayas and other hilly areas.

Environmentally sound action plans based on scientific research should be adopted. Environmentally sound action plans based on scientific research should be adopted.

Masses and voluntary agencies should be involved in the task of tree planting.


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CHAPTER 4. TRADE OF FOREST PRODUCTS

4.1 GLOBAL

Forest-based products are divided into (i) wood and wood-based products and (ii) non wood/ timbe

forest products (NWFP or NTFPs). The value of global trade may be estimated at $ 155 billion in 2003 o

which non-wood products could account for about 7% depending on their definition (FAO, 2005). Thfigure does not include the value of traded services such as forest-based ecotourism which is a growin

industry and is becoming a significant source of revenue in many countries. Wood-based products ar

traded as (a) roundwood (or chips), (b) primary processed products (sawnwood, wood-based panels, pul

and paper), or (c) further processed value-added products (builders woodwork, wooden furniture

converted paper and paperboard products, etc.). Not more than 15% of the global roundwood productio

enters international trade as the balance is used domestically. The share, however, varies by product an

region and it tends to increase as a function of product unit value. Trade has shown a visible change ove

the last few decades with a decline in the exports of roundwood (mainly due to physical supply

limitations, bans and restrictions on exports, etc.) relative to the trade in processed products. Worl

roundwood production in 2003 reached 3,342 million m3

, about 1.2 per cent above the level of th

preceding year. The greater part of global wood production is burned as fuel. Of total roundwoo

production in 2003, 53 percent was woodfuel and the remaining 47 percent available for industria

roundwood. The vast majority of wood burning occurs in developing countries, where wood is often th

most important source of energy. On the other hand, the larger part of industrial roundwood productio

continues to be accounted for by the developed countries, which provide more than 70 percent of th

total. As most industrial roundwood is consumed and processed domestically, the proportion reachin

international markets is small.

The developing countries accounted for 2,000 million m3

or 60 percent, of total roundwood production i

2002. Almost 80 percent of roundwood production consists of woodfuel, the production of which ha

been stable in recent years.

Total roundwood production in the developed countries, following a significant decline in the earl

1990s, is still well below the peak levels of 1989-90. Industrial roundwood

accounts for 87 percent of production, whereas woodfuel is of relatively marginal importance. The valu

of international trade in forest products increased rapidly from the mid-1980s to the mid-1990s to reac

$155 billion in 2003. Europe, Asia and North & Central America account for the major share of the valu

of world forest product imports. In 2003, imports of forest products reached a maximum value of $7

billion in Europe and $43 billion in Asia, the second-largest importing region. Exports of forest product


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increased remarkably in Europe in recent years and topped at $83 billion in 2003, accounting for mor

than half of the world's total forest product exports. The second-largest exporting region is North an

Central America (FAO, 2005). Europe earns higher trade value both within and outside the region

because many countries manufacture value-added products. The region accounts for 55 percent of worl

export value, although its roundwood production rests at only 30 percent of the world total. Countries in

South America, Africa and Oceania mainly trade in raw material, earning 4, 2 and 2 percent, respectively

of world export value while accounting for 10, 4 and 3 percent of total roundwood production. Worl

trade volume (exports plus imports) continued improving in 2004 when it surged by 10.3%, up sharpl

from 5.4% in 2003 and well above the average growth over the past decade and during the 1980s. Trad

growth slowed in 2005, but still expanded by a solid 7%. World trade growth is projected to accelerate t

7.4% in 2006. Both developed and, particularly, developing countries contributed to the surge in trad

growth in 2004, with both exports and imports expanding. The deceleration in world trade in 2005 wa

likewise due to lower trade volumes by both developed and developing countries. Average non-fue

primary commodity prices (US$) climbed by 18.5% in 2004, due mostly to the depreciation of the U

dollar and buoyant global demand, particularly in China. Average non-fuel primary commodity price

rose a further 8.6% in 2005. However, the average price of these commodities is projected to contract b

2.1% in 2006 in anticipation of slowing global growth, particularly in China. After remaining almost fla

or declining slightly from the mid-1990s to 2001, average primary commodity prices appear set t

resume a gradual long-term downward trend despite the strong surge in 2003-2005 (ITTO, 2005).

4.2 INDIA

4.2.1 Trade of Wood

Indias roundwood production in 2006 was estimated to about 300 million m3, of which 22

million m3

(85 per cent) is the estimated share of fuelwood and 70-80 million m3

industrial roundwood, including poles and small lumber for rural households (ITTO, 2006). Compare

with 1991, roundwood production in 2001 registered an increase of about 20%. Supply from India

natural forests (including temperate hardwood and softwood species) is about 12 million m3

(about ha

of it from tropical forest areas). The estimated share of industrial roundwood for industry coming from

farm forestry and other trees outside forests is 31 million m3

. Official imports of timber count for jus

over 3 million m3

in 2006, mostly in form of logs. Hence there is a gap between consumption and suppl

of timber of about 25 million m3

. It is possible that a considerable part of this gap is coming from

unregistered sources, such as homegardens and small timber logs and poles. A major player to fill up thi

gap is the production of timber from Non-Forest areas, the high potential of which has not been recorde


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at the National level. The incidents of some theft from forest areas, tantamount to illegal felling, are no

ruled out. A considerable share of demand for industrial roundwood is coming from the pulp and pape

industry. This industry mostly sources its raw material in India, not through imports of pulp. Wood (47%

and bamboo (24%) count to about 5.9 million m3 roundwood equivalent of the total production of 5.3

million metric tonnes. Eucalypts (47%), Casuarina equisetifolia (26%) and Leucaena leucocephala (20%

are the main wood species demanded. The main suppliers of the pulp and paper industry are farm forestr

28%, the open market (29%) and government sources (39%). ITC Ltd. Bhadracgalam Unit in Andr

Pradesh for example obtains 83% of its wood from farm forestry, JK paper in Orissa obtains nearly 90%

from farm forestry. India is a net importer of forest products. In 2001, the largest share of import bil

went for logs for feeding the processing units, followed by paper and paperboards. The total value o

imports of primary forest-based products in 2001 was US$ 942 million, compared to US$94 million fo

such exports. Logs made up about 42% of the total forest products import bill. The import volume wa

about 2.1 million m3 in 2004 and is projected to increase significantly to meet the growing gap between

supply and demand, especially of quality tropical hardwoods. As such, 95% of all wood imports to Indi

are logs, mainly from tropical countries. With Indonesia and Papua New Guinea no longer in the arena

Myanmar and Malaysia remain the major countries for tropical log imports. Several African and Latin

American countries are joining the log and other forest product exporters to India, notably Benin, Cost

Rica, Cote d Ivoire, Ecuador, Gabon, Ghana, Nigeria, Tanzania and Togo, and even Cameroon, Guyan

and Panama. Log imports are supported by a favourable tariff regime of 5% compared with 25% fo

imported sawnwood and 34.4% for plywood.

4.2.2 Trade of NTFP

India has a rich resource base of NTFP that includes 3,000 species of plants, 1800 medicinal plants, 250

essential oil yielding plants, 100 tans and dye yielding plants and 120 gums and resin yielding plants. Th

quantity, price and thus value of both imports and exports of NWFP has increased. The increase is mor

in exports than imports and is a good sign for the country. Benefit of such increase will be still more i

these benefits trickle down to the local people. This is very important especially when a large section o

people living near to forests derive economic support form these products. Nearly 60 percent of all th

recorded forest revenue in India comes from NTFP. Most of India's 50 million tribal people receive

substantial proportion of their cash and in-kind income from NTFP (NTFP are estimated to generate 7

percent of all employment in the Indian forestry sector), while about 200 to 300 million village peopl

depend on products from forests to varying degrees (Shiva 1995). The forestry sector, with 23 percent o

the country's geographical area, provides 2.3 million person-years of employment. Of this total, 1.

million person-years are related to NTFP. Most NTFP often provide employment during only part of th


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year because the processing of NTFP is still poorly developed (Gupta 1994). Therefore production an

trade in NTFPs receives attention in successive forest policy statements because NTFPs are so importan

in the forest-dependent rural and tribal economy. The Constitutional Amendments of 1993 provided fo

transfer of ownership of NTFPs from the State governments to Gram Sabhas/ Panchayats (villag

assemblies) in States having sizeable tribal populations. Many States have specific regulations abou

NTFP production and trade. The prime objective of the State Minor Forest Produce (Trade an

Development) Co-operative Federation is to save the tribal people who are engaged in collection o

minor forest products (= NTFPs) from inequitable trading with urban-based middlemen, to ensure fa

wages and benefits, to rationalize marketing of products, to empower the community in managing thei

own affairs through appropriate institutional arrangements, and to ensure that the resources ar

sustainably managed.

Plant-based medicines for which the knowledge is traditional and inherited in tribal communities ought t

confer intellectual property rights on the producer communities. It is unclear if India has the appropriat

legislation to permit the registration of such knowledge (as prior art), which can be used to advantag

by the communities if the private sector (or government) attempts to domesticate or patent the plan

genomes or their products. The situation is complicated by the long period for which the phytochemica

survey of India has been running well over a century so the traditional knowledge may have bee

placed in the public domain before intellectual property rights were deemed to be commercial fo

indigenous and traditional people.

4.2.3 Contribution Of Forest Sector To Gross Domestic Product (GDP)

It is a direct measure of contribution of forestry sector to national economy and can be used to estimat

its multiplier effects on other sectors of economy. It provides one of the basis for allocation of resource

in Indian national planning system and thus availability of monetary resources for forest developmen

Since it measures unduplicated value-added, the Gross Domestic Product (GDP) may be considered mor

useful to measure economic contribution than revenue or employment. Forestrys contribution to GD

fell from about 2.9% in 1981 to 1.7% in 1991 and around 1.1% in 2005 and 0.9% in 2006 (CSO, 2006

This figure excludes the contributions of forest-based industries (which are counted undemanufacturing), as well as the vast amount of products such as fuelwood and fodder, the use of which i

unrecorded. The figure also ignores the contribution of environmental services such as water and soi

conservation. About 7.5 million people, mostly in rural and tribal settings, are in forest-relate

employment. The declining trend in national income and the absence of reliable estimates of removal

and value of forest products calls for detailed study to find out actual estimates and to identify causes o

decline and revise the estimates if necessary.


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CHAPTER 5. EXPORT PROSPECTS OF MINOR FOREST PRODUCTS

Minor forest products (MFPs), also known as non-timber forest products, non-wood forest products o

special forest products, are obtained from various species such as fruits, seeds, leaves, barks, roots

flowers and grasses, including entire plants of medicinal herbs/ shrubs. These products are used by rura

communities as medicine and food. The rural communities earn substantial income, especially during

non-agriculture season, through their collection and sales. In India, the MFPs over the years have bee

playing an important role in the viability and survival of tribal households because of the importance o

forests in their social, cultural and economic survival. Women are the primary players in the collection

processing and marketing of MFPs who gather bulk of forest produce. A major share of MFPs in Indi

originates from the states of Maharashtra, Madhya Pradesh, Bihar, Orissa and Andhra Pradesh.

India over the years has been exporting a wide range of MFPs. Some of the major ones inter alia include

guargum and guargum-based products, oleoresins of spices, flowers, leaves, a wide variety of lacs an

gums, saps and extracts of plants and leaves, bidi wrappers (tendu leaves), betel leaves, sandalwoopowder and bamboo-based products. Guar gum enjoys preeminent position in the exports of minor fores

products. India exports guar gum in various forms to all parts of the globe. More than 80 per cent o

exports of minor forest products are accounted for by guar gum.

Guar or cluster beans is a legume crop that is grown best in the semi-arid regions in the country. In India

guar is grown primarily in Rajasthan. It is also grown in Haryana, Punjab, Gujarat and Madhya Pradesh

While guar is seen as a vegetable in the South, in the North it is primarily seen as a raw material t


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produce guar gum. Guar gum is used as a thickening agent and additive in food products such as instan

soups, sauces, processed meat products, baked goods, milk and cheese products, yoghurt and ice creams.

It is also used in industrial applications such as paper and textile sectors, explosive manufacture an

fracturing of gas and oil formations. India is one of the major producers of guar seed and gum

accounting for 80 to 85 per cent of the total global supply.

The Indian Institute of Natural Resins and Gums is a nodal institute at national level for conducting

research and development on all aspects of lac and other natural gums and resins, such as harvesting,

tapping, processing, product development, training, information repository and technology dissemination

Another government body Shellac Export Promotion Council (set up by the Ministry of Commerce,

Government of India), recently renamed as Shellac and Forest Products Export Promotion Council

(SHEFEXIL), has been looking after export promotion of minor forest products. Besides, to pay specifi

attention to the marketing requirements of the tribal forest and agricultural produce, the government o

India has set up another body called the Tribal Cooperative Marketing Development Federation of Indi

(TRIFED).

5.1 RECENT DEVELOPMENTS

EU notifi cation on guar gum. The government of India, Department of Commerce, has decided tha

wide sampling of the entire chain of guar gum needs to be done to find out presence of dioxins an

pentacholorophenol (PCP) in food-grade guar gum exported from India, at the instance of alert cautione

by the European Commission. The step has been initiated as a sequel to EU notification on presence o

dioxins and pentacholorophenol.

The EU Rapid Alert System for Food and Feed (RTASFF) has informed all member states that in certain

batches of guar gum from India, the contamination levels were very high. At present, there is no system

to establish presence of dioxins in guar gum which was being exported.

Boosting expor ts of bamboo- based products. Shellac and Forest Products Export Promotion Counc

(SHEFEXIL) has recently taken up a project to boost exports of bamboo-based products in Mizoram an

Tripura under the Backward Region Grant Fund (BRGF) scheme of the Government of India. The mainobjectives of the project are to raise Indias exports of value-added bamboo items to Rs 15 crore by 201

from the current Rs 96 lakh, and providing employment to the rural folk. The council would assist in bot

product manufacturing and competency development by way of training, providing implements an

facilities for mat weaving. It would also be working for technology support with agencies such as th

Guwahati-based Cane and Bamboo Technology Centre and private players.


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R&D

project. The Ministry of Commerce, Government of India, has recently approved a project on R&D

proposed by Shellac and Forest Products Export Promotion Council in order to develop high-yielding,

quality seeds for enhancing Indiasguar gum exports under the Market Access Initiative Scheme (MAI).

The project is set to increase exports of guar gum in a big way. A strategic objective of R&D project

is to maximise arid land utilisation by bringing them under guar cultivation.

Vishesh Kr ishi Upaj Yojana. A new scheme called Vishesh Krishi Upaj Yojana announced under th

new Foreign Trade Policy by the Ministry of Commerce & Industry, Gov ernment of India, provides

host of incentives to boost exports of minor forest produce and their valueadded products. These inte

alia include duty-free import of capital goods under the Export Promotion Capital Goods (EPCG

scheme and duty credit scrip equivalent to 5 per cent of the f.o.b. value of exports.

The entitlement is freely transferable and can be used for import of a variety of inputs and goods. Th

special scheme has been announced to uplift the economic status of tribal population who largely depen

on forest products for their livelihood. Procedural guidelines for the scheme have also been notified an

the exporter has been given the flexibility to obtain duty credit certificates in split form that will mak

utilisation of the licences easier.

Minor Forest Produce I nformation Centre. The Shellac and Forest Products Export Promotion Counc

(SHEFEXIL) has recently set up a Minor Forest Produce Information Centrea one-step cell fo

providing all information related to MFPs to the concerned interests in the trade and industry.

Portal on MFPs. The SHEFEXIL has recently launched its online international businessto- busines

marketplace. The portal is a onestop sourcing point for foreign importers and the major players are th

dynamic Indian exporters with proven track record.

National Bamboo M ission. Against the backdrop of tapping tremendous potential of bamboo and

bamboo-based products, the Government of India has recently launched a special scheme to integrate th

production, post-felling management, value addition and market aspects related to bamboo and bamboobased products. It targets to cover a total area of 6 million hectares under bamboo cultivation during th

Tenth and the Eleventh Plans.


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CHAPTER 6. WEAKNESSES AND CONSTRAINS IN THE FOREST PRODUCT

STATISTICAL SYSTEM

6.1 RELIABILITY OF PRODUCTION AND TRADE DATA

There are several difficulties with ensuring the reliability of data from different sources collates by th

Division of Statistics. These are related not only to the direct providers of information, but also to th

chain of information providers from which they themselves receive data.

With respect to information collected by State Forest Departments from forest ranges and sent to th

Division of Statistics, the mechanisms involved are, at present, inadequate to ensure data accuracy an

timely submission. This is partl y because of the lack of statistical units in some State Forest Department

and the fact that the involved staff, being already burdened with other work, may be inclined to trea

collation of information from user agencies as a secondary task. The Division of Statistics also facedifficulties in collating information from state and central agencies as a result of differences between th

data collection formats used by the agencies and those sent by The Division of Statistics. Gaps i

information are therefore inevitable and on occasion there is considerable hesitancy in sharing data fo

one reason or another.

Once information is received by the ICFRE Division of Statistics for national publication, it is considere

correct and as such no checking, even by sampling, is carried out. All precautions are taken, howeve

during data compilation. Safeguards include scrutiny of data, in consultation with experienced fores

officers at Dehradun and double-checking of information with original forms once data are entered i

Microsoft Excel spreadsheets. In general, there are no great problems in analysing and disseminatin

statistical information at the national level and The Division of Statistics at Dehradun discharges this dut

very efficiently.

State/UT Forest Departments do not have staff trained in collection and compilation of statistica

information and, due to a scarcity of funds, are unable to acquire the latest data processing equipmen

They also lack the funding to appoint experienced database and Internet administrators to efficientl

manage and maintain statistical systems and, in fact, very few State/UT Forest Departments are able to

access internet facilities. Without making such facilities available to the State/UT Forest Departments

is unlikely that it will be possible to obtain accurate and timely forestry information. The main constraint

and weaknesses in forest products statistics collection are summarised in Table 1.


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Table 1. Matrix of weaknesses and constraints in the current statistical system

Activity Weaknesses Constraints

Data

collection

Information may be inaccurate and

unreliable

Information is reported irregularly

or not at all.

Data formats used at the state and

national levels are not uniform.

There is often indifference to

sharing information.

General lack of staff and also a lack

of staff trained in relevant fields.

Lack of funds.

Responsibility for state level

reporting is not entrusted to the

Directorate of Statistics.

No single agency is responsible for

providing state level information.

Data

compilation

and analysis

Data may go unchecked or

unanalysed

Insufficient staff and electronic

equipment

Lack of a database and of database

administrators

Lack of staff trained in the use of

relevant software.

Lack of trained and experienced

staff at both state and national level.

Dissemination No priority is given to timely

collection and supply of

information by the states.

Difficulties are found in publishing

final reports on time.

Lack of funds.

Lack of an internet administrator.

States HQs have no internet

facilities

Lack of a database at the central

and state levels.

1 erstwhile Directorate of Statistics; the unit of statistics under the Directorate of Education in ICFRE.


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ADHERENCE OF CUSTOMS STATISTICS TO THE WCO HARMONISED SYSTEM

For the assessments in this report, forest products trade statistics were taken from the March 2011 issu

of Monthly Statistics of Foreign Trade, published by the Directorate of Commercial Intelligence an

Statistics, Department of Commerce. The information contained therein conforms exactly to the Worl

Customs Organisation harmonised system. This is in accordance with the explanatory notes issued by th

Directorate of Publication, Custom and Central Excise, New Delhi, which includes the Harmonise

Commodity Description and Coding System. The nomenclature and codes followed for export an

import of forest products is covered in chapters 6, 12, 14 and 44 to 49. In this respect, there are no

problems with trade statistics.


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7. RECOMMENDATIONS TO IMPROVE THE FOREST PRODUCT

STATISTICAL SYSTEM

To improve the national forest products statistics systems state and national level data collection format

should be harmonised to facilitate accurate and timely data reporting and compilation.

At the national level, the Division of Statistics maintains a forestry database and equivalent database

should be set-up in all State Forest Departments. Those that do not have a statistical unit at head quarter

should create such a unit. To ensure that the unit is properly staffed, the staff should comprise one Senio

Statistical Officer, two Statistical Officers and four Research Investigators. The Division of Statistic

should post a Junior Research Fellow (JRF) to each State/UT Forest Department to assist with compilin

and sending information to the National Forest Department HQ on time. The JRFs could also help wit

installing information-processing systems.

All State/UT Forest Department Head Quarters should equip their statistical units with Internet facilitie

and modern data processing equipment. With such facilities available to all State/UT Forest Department

information flow will be much more rapid and State/UT level information could also be made availabl

on the Internet. A programme to improve facilities in this way would be facilitated by researchers an

funding agencies working together with the Forest Departments.

Other proposed suggestions include:

Statistical correspondents at each State Forest Department Head Quarters should be nominated.

Links should be formed through NIC with districts/divisions.

Districts should send information in standard format directly to ICFRE, either directly by e-ma

or through NIC.

Data from national level agencies should be requested in electronic form.


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CONCLUSION

Despite overall economic growth, poverty, hunger and malnutrition persists in parts of the world an

among various sectors of population due to uneven distribution of wealth and access to resources. Abou

100 million forest dwellers and another 275 million people are dependents on forestland for thei

livelihood. Forests do and will continue to play an important role in providing products and income fo

these peoples. Competing demands for forests to continue to provide for local needs and to meet th

increasing national demands for industrial forest products, which will be stimulated by rising incom

levels, may well intensify. The combined effect of economic growth and increasing population size o

demand for fore.


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BIBLIOGRAPHY

India & World Trade Organization (WTO):

http://commerce.nic.in/trade/international_trade_tig_nama_sectorals_w64.asp

Forestry in India: http://en.wikipedia.org/wiki/Forestry_in_India

Forest produce: http://en.wikipedia.org/wiki/Forest_produce

Forest products trade and marketing: http://www.fao.org/forestry/trade/en/

National forest products statistics, India:

http://www.fao.org/docrep/005/ac778e/AC778E10.htm
http://commerce.nic.in/trade/international_trade_tig_nama_sectorals_w64.asphttp://commerce.nic.in/trade/international_trade_tig_nama_sectorals_w64.asp

Documents

forest products and trade