National forest products statistics, Nepal

Introduction

Nepal is a relatively small country with an area of 14.72 million hectares, situated between India and China. Administratively, the country is divided into five Development Regions and 75 districts. The five Development Regions of the country are Eastern, Central, Western, Mid-Western and Far Western.

Forest and shrub land cover about 39 percent (5.83 million hectares) of the total land area (DFRS, 1999). National forests are divided into five categories according to management and ownership as follows: (i) Government managed forests, (ii) Community forests, (iii) Religious forests, (iv) Leasehold forests and (v) Private forests. Of the 75 districts in total, 24 fall into the lowland Terai area of the country where forests are categorised for production. At present, Government’s policy is to increase the forest area under community management whereby user groups are given responsibility for managing forest as underlined in the community forestry Operation Plans.

In Nepal, sawnwood is the main product from hardwood species, of which the most important is Sal (Shorea robusta). Because of over exploitation of several species, in the past, harvesting of live trees has been prohibited since 1994/95. The sale of products derived from these species is therefore currently restricted, although the ban has been lifted in the past. Currently, there is a total ban on log export, especially with respect to Shorea robusta, Michelia and Acacia catechu.

Of the various forest product categories, existing documents suggest that data for only four are available, i.e. roundwood, fuelwood, sawnwood and wooden poles. Information on these products is collected on a regular basis by the institutions detailed below. Fuelwood is measured by stack volume or chatta whereas roundwood and sawnwood are measured in cubic feet. Data on wood chips, wood residues and other minor items are difficult to obtain as these items are considered sawmill waste.

Institutions involved in collection, analysis and dissemination of forest products data

Currently, there are three institutions involved in producing forest products. The same three institutions are also largely responsible for collecting forest products data, they are:

• The Department of Forests (DoF), which has the main responsibility for meeting national demand for forest products such as roundwood, fuelwood, household construction timber and small timber for agriculture implements.
  
  
• The Timber Corporation of Nepal (TCN), which acquires roundwood from the Department of Forests and produces sawn timber.
  
  
• The Forest Products Development Board (FPDB), which sells roundwood, fuelwood and poles harvested from its own plantations.

In addition to these, Community Forest User Groups and private tree growers also produce forest products such as roundwood, fuelwood and small timber for household use. However, DoF has only recently begun compiling forest products production figures for community forests and does not collect data directly from private forests.

The information provided by the implementing institutions is thought to be reliable given that fixed royalties have to be paid to the national treasury before forest products are sold and the concerned revenue department monitors annual audits of production and sale. Thus figures are double-checked and are hence reliable.

Owing to the nature of the institutions involved, variability exists in the way data are presented. Therefore, the review of existing forest products statistics in the following sections treats each institution separately. Although, it may appear that three sets of data are collected for each forest product category, data collected by DoF and TCN are equivalent as TCN receives all forest products from the DFOs. However, forest products obtained by FPDB are separate.

All institutions involved in collection, analysis and dissemination of wood products related data are listed in Table 1. Most do not themselves collect forest product data from the field but gather it from published reports, journals and other sources.

Table 1. Institutions involved in collection, analysis and dissemination of wood products-related data

Details of the activities of the three main institutions involved collection of forest products data are given in the following sections.

The Department of Forests is responsible for the protection, sustainable development and promotion of all national forests. It has District Forest Offices (DFO) in all national districts except Mustang in the Himalayas. One of the principal objectives of the department is to fulfil national wood and fuelwood demands through its district offices. As felling of green trees is prohibited, the department currently obtains logs from dead, fallen or uprooted trees. In addition, District Forest Offices harvest forest products when trees are removed during development work.

As forest products supply is mainly directed towards fulfilling national demands for roundwood, sawnwood and fuelwood. District Forest Offices follow a standard method of distribution. This involves allocating forest products to the district level Forest Products Supply Committee to first satisfy district demands. Of the remaining stock, each District Forest Office sells 50 percent and provides the remaining 50 percent to the Timber Corporation of Nepal for sale in the open market (Figure 1).

Figure 1. Forest products distribution scheme

Information on roundwood and fuelwood production, collected by the Department of Forests, is available annually. With respect to other forest products, data are limited for a number of reasons:

• The production of charcoal is prohibited by law in Nepal and there is, therefore no figure for this item.
  
  
• Forest products have not, to date, been utilised as industrial raw materials and therefore there are no figures for wood pulp, other pulp, paper or paperboard.
  
  
• A small number of industries produce wood chips, wood residues, sawnwood, wood-based panels, plywood and fibreboard but volumes are small (<1000 m³) and published data are not available.
  
  
• Trade data is only available from the Department of Customs, Ministry of Finance at present.

In the following tables, national and regional figures for roundwood and fuelwood production and stock are presented. Data inconsistencies are probably due to the present system of book keeping. For example, differences in roundwood production and stock figures for 1999/2000 (32 176 m³ and 88 913 m³, respectively) may result from accumulation of stock over the previous years. The same situation applies for fuelwood.

Roundwood production, sales and stock

Regional and National roundwood production, sales and stock are shown Tables 2 to 4.

Table 2. Regional and national roundwood production, 1994-2000

Table 3. Regional and national roundwood sales, 2000/2001

Table 4. Regional and national roundwood stock, 1996-2000

1-This figure was revised to 5 0064.68 upon second assessment, 24553.12 m³ having been lost to decay.

Fuelwood production, sales and stock

Fuelwood has traditionally been the main source of energy for domestic and industrial applications in Nepal. Currently, annual fuelwood consumption is over 13 million tons (WECS, 1998). It was estimated that total energy consumption in 1995/96 was 292 million GJ of which wood fuel contributed over 80 percent. In Nepal, head loads of fuelwood from Government forests are free and fuelwood is also extracted for community forests as per the operation plans; no records are kept for either. Additionally, many private tree growers sell fuelwood to small industries and the public. Therefore, recorded fuelwood collection is very small compared to figures that have been reported in other publications.

According to actual production and sale figures from depots located mainly in accessible parts of the Terai districts, the highest levels of fuelwood consumption during 1995/96 were in the Central Development Region (36 percent of national total), followed by the Western Development Region (20 percent), the Mid Western and Eastern Development Regions (16 percent each) and the Far-Western Development region (12 percent). The fuelwood production and stock figures provided by the Department of Forests do not tally with these percentages and as such DoF figures appear to be nominal.

Table 5. Regional and national fuelwood production, 1994-2000

Table 6. Regional and national fuelwood sales, 1994-2000

As a result of the more recent instigation of regional level data collection, regional fuelwood stock figures have only been available since the 1996/97 fiscal year whereas national figures from the District Forest Office, have been available since the 1995/96 fiscal year as shown in Table 7.

Table 7. Regional and national fuelwood stock, 1995-2000

Source: Annual Reports, Department of Forests, 1996, 1997, 1998

Data collected by District Forest Products Supply Committee and Timber Corporation of Nepal

Table 8 and Table 9 show production and stock of roundwood and fuelwood from the District Forest Products Supply Committee (DFPSC) and Timber Corporation of Nepal (TCN); regional data are not available from these institutions. As stated above, District Forest Offices provide timber to the TCN and therefore TCN roundwood figures should match District Forest Office figures. However, as a result of log decay in TCN log yards, this is not always the case.

In some cases, stock figures may be higher than production figures for the two agencies. This is because of accumulation of stock from the previous year/s. Moreover, production and sale of these products are irregular and fluctuate with availability.

Table 8. DFPSC and TCN Roundwood production and stock figures

Table 9. DFPSC and TCN Fuelwood production and stock figures

Source: Bi-Annual Report, Department of Forests, 1996. Annual Reports, Department of Forests, 1996, 1997, 1998; The Timber Corporation of Nepal, 2001.

Roundwood and fuelwood productions figures are collected through direct field measurements. A manual recently published by the Ministry of Forests and Soil Conservation (MFSC, 2000) contains methodologies for collection, harvesting, measurement, sale and distribution of forest products. The key features of the harvest methodologies are as follows.

Harvest area assessment. Initially, the District Forest Officer (DFO) marks plots from which trees are to be removed. During plot marking consideration is paid to soil and water conservation and bio-diversity. DFO and the harvesting representative check the area for skid trails, landing and log yard locations. The information is marked on a map that is jointly submitted to the District Forest Office.

Marking procedure. All trees to be removed are marked and placed into one of three classes according to the roundwood and fuelwood volume, which are evaluated using local volume tables. This procedure has to be done by a Range Officer with the concerned officer verifying figures. Each tree is marked with a hammer at 15 cm and 1.35 m above ground, and numbered with paint. The marks should be 15 cm x 15 cm in size and in opposite directions. All trees marked should be recorded in a prescribed tabular format. DFO should examine at least 10 percent and the Regional Director at least 5 percent of the marked trees.

Sectioning procedure. A standing rule in the MFSC manual states that trees should be sectioned for logs as appropriately as possible. However, market demand and tree form also play a crucial role in log sectioning. There are also standing rules for defining roundwood and fuelwood. Logs having less than the size prescribed for roundwood (45.6 cm girth and 61 cm length) are categorised as fuelwood. Large logs not fit for sawing due to defects are categorised as fuelwood as are lops and tops and other tree sections not normally used for lumber. The manual directs that poles and logs suitable for roundwood should not be converted into fuelwood.

Volume computation. Log volumes are computed on the basis of the quarter girth formula with deductions made for voids and decayed wood. A sawlog register book is maintained, which records information such as marking number, log number, species, and length of log, gross volume, cull volume and net volume. The volume of logs and fuelwood should also be recorded in a standard format provided by the MFSC (2000).

Traditionally, the District Forest Offices compile all district level production and sale data according to a series of formats. In the case of harvested trees and logs brought to the dumping yard, formats should be completed at fifteen-day intervals. As there are regular checks on the number and volume of logs arriving at the dumping yard and figures are regularly updated, there is no confusion over data validation.

The data compiled for Districts and Development Regions on production, sale, stock and revenue collected, etc are disseminated annually by the Department of Forests in Annual Reports. As yet there is no system for regular dissemination of information to the public and press, although some data are released at press conferences. Individuals and press members interested in forestry information therefore acquire data either from the annual report or through official contact. The Department of Forests also provides data to the Nepali Central Bureau of Statistics and to International Agencies such as FAO.

The Timber Corporation of Nepal (TCN) is a semi-autonomous body under the Ministry of Forests and Soil Conservation. It was established during 1960s with the objective of collecting and selling forest products in the 33 Terai Districts of the country and has branches in most of these districts. The institution has a government mandate to meet the forest products demands of the urban population and sells sawnwood and fuelwood as appropriate. TCN receives roundwood from the respective District Forest Offices and sells it as either roundwood or sawnwood, which TCN produces itself. TCN is currently suffering from internal problems and is not receiving as much roundwood from districts forest offices as before. The volumes produced and sold by TCN are therefore lower than in previous years.

Information on production of roundwood, sawnwood and fuelwood are only available from TCN at the national level. Information provided on the production and sale of roundwood, sawnwood and fuelwood over the past six years are presented in Table 10.

Table 10. Production and sale of roundwood, sawnwood and fuelwood

Source: The Timber Corporation of Nepal Ltd. Head Office, Kathmandu, November 2001.

In most cases, roundwood, sawnwood and fuelwood sale figures are below those for production. This results from the roundwood and sawnwood productions volumes being accumulated from previous years. The figures provided by DoF and TCN headquarters do not match.

The District Forest Offices supply roundwood to TCN on the basis of field measurements. TCN follows a standard data collection procedure identical to that of the DoF. All logs are measured under bark and volumes are calculated following local volume tables. Because of the price differences between species, logs are graded, as far as is practical, according to species and merchantable size. Of the construction timbers Sal (Shorea robusta) fetches the highest prices followed by Terminalia, Adina cordifolia and other species. The Range Officer responsible counter signs the log production sheet, hands the logs over to the TCN representative and sends a copy of the log production sheet to the District Forest Officer.

Forest products data are compiled both at district and national level for a given fiscal year. If need be these data are inspected by the supervisors and validated where necessary. Although data are collected and compiled species wise, they are grouped for presentation purposes as in Table 10. On a national level, it is difficult to analyse the share of major and minor timber species. District level data are, however, normally available on request from the respective districts but are not disseminated either in the form of leaflets or annual reports.

The Forest Products Development Board (FPDB) is a semi-autonomous body established in the 1975. FPDB has established plantations by clearing degraded Sal (Shorea robusta) forest and other forest types and replacing them with fast growing species such as Eucalyptus, Tectona grandis and Dalbergia sissoo. Forest products include roundwood, fuelwood, poles for transmission lines, wood residue (locally known as koro) and raw materials for the particle board industry. Production and sale of forest products by FPDB for the last four year are shown in Table 11.

Table 11. FPDB production of roundwood, fuelwood, poles and wood residues

Source: Forest Product Development Board Head Office, Kathmandu, November 2001

Production data is collected through direct field measurements. Prior to felling, trees are marked and their volumes are estimated using local volume tables. For roundwood and poles, log volume is calculated by the quarter girth formula. The local officer is responsible for keeping and updating production and sale records. Since FPDB does not fall under the jurisdiction of the Department of Forests, the data produced by FPDB are not available from District Forest Offices.

Initially, production and sale data are collected for a given site and compiled later on for the whole project area. As almost all FPDB forest products are from Eucalyptus plantations, it is normally assumed that all FPDB products are Eucalyptus. All harvest, production and sales data are immediately compiled and documented in the project office and are inspected by supervisors and validated where necessary. Progress reports are sent to Central Office at monthly, quarterly and yearly intervals and compiled data are reported in standard format to the Ministry of Forests and Soil Conservation. All these data are available to the concerned institutions upon request, however they are not otherwise disseminated.

Current and potential users of forest products statistics

Currently, export of roundwood, sawnwood, fuelwood and poles is prohibited. Therefore, current users of information are limited to the Ministry of Forests, the Ministry of Finance, the National Planning Commission, the Central Bureau of Statistics and local traders. Potential users of forest products information are unlimited provided that information serves requirements. For example, potential users of fuelwood information include brick kiln proprietors, and furniture manufacturers and other forest products using industries are potential users of roundwood information. The following current and potential users have been identified (Tables 12 and 13).

Table 12. Current users of wood products information

Table 13. Potential users of wood products information

Weaknesses and constraints in the current statistical system

At present statistics are collected by various institutions according to their individual needs. There are many data gaps and disparities. This is not only the case in the forestry sector but also in most other sectors. The Central Bureau of Statistics (CBS) is responsible for collection and dissemination of various types of data in Nepal but has not so far not been able to collect and disseminate appropriate data covering all sectors.

There are a number of constraints in the existing system of national data collection. Among them some important ones are as follows:

• Fifty-three of the seventy-five National District Forest Offices are located in the hills and the Range Offices are located in still more remote areas. There is a possibility that these areas lack adequate supervision, which may result in incorrect information.
  
  
• Due to poor communication systems, data may not be received in time for compilation, which may result in late publication of annual and bi-annual reports or complete failure to publish.
  
  
• Most Field Rangers and even District Forest Officers do not understand the importance of statistical data and record keeping.
  
  
• Most Field Rangers and even District Forest Offices lack modern technologies to analyse data.

Table 14. Matrix of weaknesses and constraints in the current statistical system

Suggestions for improvement to the current statistical system

Presently national forestry statistics are collected by conventional methods that need to be improved. Improvements should start by equipping Field Offices with modern instruments to increase the efficiency of information generation and update and Forest Rangers should be given short refresher courses on information collection and analysis. The development and linking of appropriate record keeping system at District, Regional and Central level is a further priority. At the national level a National Statistical Plan should be formulated. The plan should review the prevailing system of data collection and dissemination and reform it in accordance with national and international requirements. Until such a plan is instigated, it is highly desirable that data recording should be continued following the diagram in Figure 2.

With respect to tree classification, it should be noted that roundwood data are compiled from all 74 districts in Nepal, some of which produce roundwood from conifers. In the current annual report softwood and hardwood quantities are not individually specified although it is possible that this could be achieved given that differentiation is made in district level data between softwood and hardwood figures through the royalty system. In this connection work has already been initiated through development of a database in the Department of Forests, which includes figures for old stock, present production, sale and remaining stock for a given fiscal year. The forms for data collection have been developed with the concept that forest product data collection should begin from the range post and district. Softwood/hardwood classification would be recorded at the collection point. Figure 2 shows the proposed system for information collection.

Figure 2. Proposed data collection system

Conclusions

Other than the Forest Products Development Board, which produces forest products from its own resource base, the DoF (District Forest Offices), DFPSC and TCN are totally dependent on government forests. The district forest offices sell a proportion of forest products from their own depots and provide forest products to the District Forest Products Supply Committee and the Timber Corporation of Nepal. The forest products data generated by these agencies sometimes differ despite the source of materials being the same (e.g. district forest offices). This results from the differing systems of functioning of the involved institutes.

References

Department of Forests, 1996. Bi-Annual Reports, for the Fiscal Years 1994/95 and 1995/96. Department of Forests, Ministry of Forests and Soil Conservation, Babar Mahal, Kathmandu, Nepal.

Department of Forests, 1997. Annual Reports, for the Fiscal Year 1996/97. Department of Forests, Ministry of Forests and Soil Conservation, Babar Mahal, Kathmandu, Nepal.

Department of Forests, 1998. Annual Reports for Fiscal Years 1997-1999. Department of Forests, Ministry of Forests and Soil Conservation, Babar Mahal, Kathmandu, Nepal.

DFRS, 1999. Forest Resources of Nepal, 1987-1998. Department of Forest Research and Survey. Forest Resource Information System Project. Babar Mahal, Kathmandu Nepal.

Ministry of Forests and Soil Conservation, 2000. Forest Products, timber/fuelwood Collection and Sale Directives- 2000. Ministry of Forests and Soil Conservation, Singha Durbar, Kathmandu, Nepal.

Nepal Rastra Bank, 2001. Export and Import Bulletin. Research Department, Nepal Rastra Bank, Baluwatar, Kathmandu, Nepal.

Pandit, S.K., 2001. National Statistical Plan and its Necessity. The Gorakhapatra Daily. November 26, 2001. Kathmandu.

Sixth Annual Report, 1997/98. Sri Bhrikuti Pulp and Paper Nepal Limited, Nawalp Parasi, Nepal.

WESC, 1998. Country document on present status of wood energy in Nepal. WESC report, Kathmandu, Nepal.

Appendix 1. Exchange rates of Nepalese rupee to us dollars