AGROFORESTRY MARKETING PATTERN

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AGROFORESTRY MARKETING PATTERN FACILITIES
PRICE TRENDS IN NORTHERN INDIA
PRESENTED BY VIVEK SAXENA DEPUTY CONSERVATOR OF
FORESTS ROHTAK FOREST DIVISION,HARYANA,INDIA
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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).
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FOREST VEGETATION
SOURCEMAPS OF INDIA.COM
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AGROFORESTRY
Agroforestry Most desirable and viable strategy
for maintaining social, economic and ecological
sustainability in India. Eucalyptus and Poplar
are main species
POPLAR TURMERIC
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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.
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AGROFORESTRY
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• 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.

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Study Area

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

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SourceHARSAC,Hisar,Haryana
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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.

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Study Criterion/Parameters

• Farmers preference about agroforestry species
• Agroforestry practices, silvicultural/economic
  rotation, Market linkages of producers, buyers,
  commission agents, sellers and consumers.

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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.

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Results and Discussion

• Main Stakeholders
• Agroforestry Based Wood Products
• Adoption of Agroforestry
• Prevalent Sizes
• Price Trends

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Results and Discussion

• Girth Class Price Analysis of Eucalyptus and
  Poplar in Farmers Fields
• Market Mechanism Dynamics
• Economics and Returns
• Future Strategy

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

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Market linkages of Buyers, Sellers and
Consumers
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Agro forestry Products

• Ply based wood.
• Particle board
• Fibre board
• Wood Pulp
• Paper Paper board
• Veneer units
• Sports goods
• Saw mills

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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 .

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AGROFORESTRY

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

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CLONAL AGROFORESTRY PROMISING FUTURE
CLONAL PLANTATIONS
MODERN NURSERY
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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.

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Adoption of Agroforestry

• Spacing 2m2m, 3m3m,or 3m2m ( Eucalyptus )
• Poplar( 5m4m or 4m4m.)
• 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).

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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.

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Adoption of Agroforestry

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

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POPLAR SUGARCANE
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HARVESTING
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PREVALENT SIZES   Table Size Categorization
of Eucalyptus Poplar Species in Wood Market  
       
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Price Trends       Figure Poplar Price Trends
In US Per Tonnes, (1995-2002)  
 
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Price Trends  Figure Eucalyptus Price Trends
in US Per Tonnes, (1995-2002)  
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Figure In terse Prices of Eucalyptus Poplar
in US per Tonnes (1995-2002)
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Figure Girth Class Pattern of Poplar
Plantations in Farmers Fields
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Figure Girth Class Pattern of Eucalyptus
Plantations in Farmers Fields
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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 quintal100kg)
• 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)

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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.

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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.

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Market Mechanism Dynamics

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

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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.

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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.

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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).

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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.

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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)

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AGROFORESTRY MARKETING EMPLOYMENT
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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)

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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 .

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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.

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Future Strategy

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

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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.

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THANKS
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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.

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References

• 6. Hara Surinder Singh. (2002), Poplar, Leading
  the tree charge, The Tribune, November , 4,2002
• 7. Mohindra V. (1998).Marketing of Eucalyptus and
  Poplar wood in Punjab An appraisal, Market
  monitoring of tree products, Proceedings of a
  National Workshop, Dehradun
• 8. Malik, D.P and Dhanda Sunil, (2003) Status,
  Trends and Demand for Forest Products in India,
  XII World Forestry Congress, 2003,Qubec City,
  Canada.

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References

• 9. Negi M.S, Ansari. M.Y, Singh H.P and Kanswal
  B.D (1998), Marketing channels of
• Tree products from Agroforestry A case
  study of Yamunanagar Timber Market, Market
  monitoring of tree Products,Proceedings of a
  National Workshop, Dehradun
• 10.Retnowati Eulis, (2003), Sustainable
  Development Through A Complex Agroforestry System
  In Indonesia, XII World Forestry Congress,
  2003,Qubec, City, Canada.

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References

• 11.Sapra.R.K. (1999). Eucalyptus Plantation safer
  investment. The TribuneChandigarh, August16,
  1999
• 12.Saxena, N.C. Eucalyptus on farmlands in India
  What went wrong? Unasylva-No 170. Boreal forests
• 13.Sharma K.K, Sharma Suman. (1998). Marketing
  channels of Agroforestry Products in Haryana,
  Market monitoring of tree products, Proceedings
  of a National Workshop,Dehradun,India