AGROFORESTRY MARKETING PATTERN FACILITIES & PRICE TRENDS IN NORTHERN INDIA

1. AGROFORESTRY MARKETING PATTERN FACILITIES & PRICE TRENDS IN NORTHERN INDIA PRESENTED BY: VIVEK SAXENA DEPUTY CONSERVATOR OF FORESTS ROHTAK FOREST DIVISION,HARYANA,INDIA

2. Map showing India and Haryana state (Source: Forest Survey of India &Mapsofindia.com) The recorded forest area in India is about 76.5 million ha (23 % of land mass). However, the actual forest/tree cover is just about 19 % of the geographical area (FSI, 2001).

3. FOREST VEGETATION SOURCE:MAPS OF INDIA.COM

4. AGROFORESTRY Agroforestry :Most desirable and viable strategy for maintaining social, economic and ecological sustainability in India. Eucalyptus and Poplar are main species POPLAR & TURMERIC

5. AGROFORESTRY MARKET Success story of agroforestry: :-Haryana and neighbouring districts of Punjab, U.P, and Uttranchal states of northern region of India. :-Evolution of annual market of agroforestry based wood products worth more than Rs.10000 million (US $ 210 million) (US $1= Rs.46) in Yamunanagar district of Haryana.

6. AGROFORESTRY

7. Study Area • Yamunanagar district of Haryana, India • Assess the trends in agroforestry development . • (ii) Analyze the price trends, marketing pattern and facilities for agroforestry development. • (iii) Adoption of future strategy and suggesting corrective policy and administrative measures.

8. Study Area • Twelve randomly selected villages of Yamunanagar district of Haryana • Information from neighbouring states of Uttranchal, U.P, Punjab was also collected.

9. Source:HARSAC,Hisar,Haryana

10. Methods and Materials • Primary producers, commission agents, and agroforestry produce based wood industries. • 17 commission agents, 10 plywood and wood based industries, 152 farmers, private and government nurseries were surveyed by adopting random sampling procedures.

11. Study Criterion/Parameters • Farmer’s preference about agroforestry species • Agroforestry practices, silvicultural/economic rotation, Market linkages of producers, buyers, commission agents, sellers and consumers.

12. Study Criterion/Parameters • Prevalent sizes, market mechanism dynamics, price trends. • Semi-structured interviews based on questionnaire developed were used to collect the data from the selected farmers by personal interview method.

13. Results and Discussion • Main Stakeholders • Agroforestry Based Wood Products • Adoption of Agroforestry • Prevalent Sizes • Price Trends

14. Results and Discussion • Girth Class & Price Analysis of Eucalyptus and Poplar in Farmers Fields • Market Mechanism Dynamics • Economics and Returns • Future Strategy

15. Main Stakeholders .Farmers & landowners(Primary producers) .Intermediate buyers/users .Contractors .Commission agents .Timber merchants .Saw mills,Veneer/peeling units .

16. Main StakeholdersSecondary buyers/end users • Plywood industries • Manufacturers of wooden boxes and crates • Foodgrain handling/storage agencies. • Building/construction works,Brick kilns etc. • Paper industry, furniture shops and other users.

17. Market linkages of Buyers, Sellers and Consumers

18. Agro forestry Products • Ply based wood. • Particle board • Fibre board • Wood Pulp • Paper & Paper board • Veneer units • Sports goods • Saw mills

19. Agroforestry • Effect of economic growth and increasing population size on demand for agro forestry-based products is likely to be significant. • Requirement of most of the products is expected to increase at faster growth rate than production. • Gap will exist between demand and supply .

20. AGROFORESTRY • The supply potential is to be enhanced by use of genetically superior planting material, improved seeds and technological interventions.

21. CLONAL AGROFORESTRY: PROMISING FUTURE CLONAL PLANTATIONS MODERN NURSERY

22. Adoption of Agroforestry • large scale adoption in the region, as it supplements returns in addition to agricultural crops. • Eucalyptus and Poplar are the main species. • Short rotation,Available market,Available planting material • Appropriate linkages between producers, contractors, buyers and consumers.

23. Adoption of Agroforestry • Spacing :2m*2m, 3m*3m,or 3m*2m ( Eucalyptus ) • Poplar( 5m*4m or 4m*4m.) • Rotation of Eucalyptus : 8 - 10 years • Poplar 4 - 6 years. • Nearly 1.8 percent of the cultivable land has been brought under Eucalyptus plantations in the northwestern region (Sapra, 1999).

24. Adoption of Agroforestry • About planting of 30 million seedlings of Eucalyptus and Poplar in the northern region . • Approximately 50,000 to 60,000 ha. • Average planting density per hectare ranges from 500 to 700. • Success percentage :60 % to 90%.

25. Adoption of Agroforestry • Wood production potential of approximately 3.7 million tones worth US $ 222 million at present prices.

26. POPLAR& SUGARCANE

27. HARVESTING

28. Species Girth Size (in inches) Length sizes (in feet) Sokhta Under Over For veneer/Peeling For shuttering/ Scaffolding Eucalyptus <16” 16”-22” 22>” 4.25feet 8.5 feet 10 to 22 feet Poplar <10” 10”-18” 24>” 4.25feet 8.5 feet 10 to 22 feet PREVALENT SIZES Table :Size Categorization of Eucalyptus & Poplar Species in Wood Market

29. Price Trends Figure :Poplar Price Trends In US $ Per Tonnes, (1995-2002)

30. Price Trends Figure :Eucalyptus Price Trends in US $ Per Tonnes, (1995-2002)

31. Figure : In terse Prices of Eucalyptus & Poplar in US $ per Tonnes (1995-2002)

32. Figure: Girth Class Pattern of Poplar Plantations in Farmer’s Fields

33. Figure :Girth Class Pattern of Eucalyptus Plantations in Farmer’s Fields

34. Market Mechanism Dynamics • Farmers incur various expenditures. • Reduction of net price by US $ 0.75 to US $1.00 per quintal for the farmer. (1 quintal=100kg) • Felling and loading charges • Transportation to timber market • Dryage cut, Octroi • Weighing charges of loaded and empty vehicle,Unloading charges • Commission of timber merchant and other incidental expenses. The price of Eucalyptus and Poplar varies due to quality of wood and demand/supply in the market. (Mohindra, 1998)

35. Market Mechanism Dynamics • The price varies due to quality of wood and demand/supply in the market. • The family size, literacy, landholding class, and distance of timber market from planting sites do not have any significant effect on the marketing channels being practiced in the area.

36. Market Mechanism Dynamics • Demand and supply position determine the price of a product in the market • Marketing of wood products plays a vital role in deciding its value and also the fate of timber species being planted on farm lands.

37. Market Mechanism Dynamics • The end users and buyers, process the raw material, through appropriate machineries before final marketing of value added product.

38. Economics and Returns Agroforestry : • benefited farmers • Created a wood industry • Generation of employment of various kinds • benefit to millions in related economic activities like transporters, wholesalers, retailers etc.

39. Economics and Returns • Farmers in the region are planting mainly Eucalyptus spp. and Populus deltoides, along field bunds and in blocks. The main associated agricultural crops are wheat, rice, turmeric, mustard etc.

40. Economics and Returns • The approximate annual returns of agroforestry from one-acre (0.405 ha) ranges from Rs. 15,000(US $ 326) to Rs. 30,000(US $ 652).

41. Economics and Returns • Returns depend on quality, market price, survival percentage and productivity of plantations. • Genetically improved varieties of Eucalyptus (ITC Bhadrachalam clones) Poplar (Wimco clones) have been introduced in the region under different agroforestry systems.

42. Economics and Returns • On reasonably fertile sites under rain fed conditions in suitable climates the trial clonal plantations of Eucalyptus have given yields that vary between 20 cum/ha/yr to 40 cum/ha/yr at 7 years age. (Chaturvedi, 2000)

43. AGROFORESTRY: MARKETING & EMPLOYMENT

44. Future Strategy • The report on the task force on Green India for livelihood security and sustainable development, constituted by Planning Commission also emphasizes, that, to achieve the desired objective of 25 % tree cover by 2012, 10 million hectares of irrigated area and 18 million hectares of rain fed will be brought under suitable agroforestry systems.(Planning Commission, 2002)

45. Future Strategy • Specific research in agroforestry and regularization of wood market system. • The attainment of these objectives is possible only are if, corrective buyer –seller linkages, competitiveness, rational protection to farmers are ensured .

46. Future Strategy • Raw wood produced by primary producers should be absorbed by market at reasonable profits and returns. • Establishment of more wood based industries in the region, sufficient incentives for setting these industries.

47. Future Strategy • Wood use diversification, production of quality wood based finished products at internationally competitive prices. • Strengthening of linkages between farmers and buyers.

48. Future Strategy • The market should be properly developed before growing the wood (ITTO, 2002) to ensure social, ecological, economic and environmental sustainability of agroforestry products.

49. THANKS

50. References • 1. Adams Mike. (2002)- Grow the markets before growing the wood, ITTO • Newsletter, December 2002. • 2. Annon. Forest Survey of India Report(2001),Dehraun,India • 3. Annon.,(2002) Planning Commision,India,the report on the task force on Green • India for livelihood security and sustainable development • 4. Annon(2002),The Tribune,Chandigarh. • 5. Chaturvedi, A.N. (2000). Commercial farming of Eucalyptus.