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T12. Value of Wood Removal

The value of “ Wood Removal” indicates the “economic health” of the “Forest”, “Other Wooded Land” and “Other Lands with Trees” which is basically a function of output and demands of forest products, prices, surplus, employment and other variables. This table deals with the market value (product of price and quantity) of “wood removal”.

A. Global Classification and Definitions (FRA 2005)

Value of Wood Removal

The market value of total annual removal of primary “round wood” (“industrial round wood”, and “wood fuel” or “fuelwood”).

Source: FAO. 2004. Terms and Definition FRA-2005. FRA Working paper 73. Rome

B. National Data Sources

Forestry Statistics complied and published by Indian Council of Forestry Research and Education (ICFRE) Dehradun provides basic information. It present information by individual States and Union Territories in India . The period of the annual reporting is from April 1st to March 31st of next year. It covers first nine months of the starting year and next 3 months of ending year, therefore information has been dealt as belonging to the starting year. For example, the period 1st April 96 to 31st March 1997 is nationally denoted as 1996-97 and contains 9 months of 1996 and only 3 months of 1997 therefore the information has been treated as for 1996. Following publication have been used for archiving National Data.

C. National Classification and Definitions

The national statistics uses the terms “revenue” and not market value. It does not include taxes, if any, imposed by central or state governments.

Value of Wood Removal

The revenue earned from removal of wood produced in forests.

Revenue

The revenue arising in the course of ordinary activities of the enterprise from ,  

A. Sale of goods

B. Rendering of services

C. The use by others of enterprise resources yielding interest, royalties and dividends.

 Explanations: Following are excluded . 

a. Realised or Unrealised gains from the appreciation in the value of fixed assets.

b. Unrealised holding gains resulting from the change in value of current assets.

c. Unrealised holding gains resulting from the natural increases in forest resources.

d. Realised or Unrealised gains from changes in foreign exchange rates and adjustments.

Note: The definition of revenue is from Institute of Chartered Accountant of India at http://www.icai/resource/as9_intro.html

D. National Data

The Forestry Statistics published by ICFRE has many gaps or missing information for few of the States of India. Such gaps have been treated as zero for arriving at national totals. Due to the missing information the revenue reported in following table “under estimates” the contribution “round wood” to the forest revenue. However it is felt that such gaps will not alter the trend, which is more important than the total themselves. Further, the break down of total revenue by “industrial round wood” and “wood fuel” from 1997 to 2000 is not available. Therefore past average of their ratio in total revenue has been used to split the total revenue of this period between the two.

Product

Revenue (Rs. In Millions)

1990

1994

1995

1996

1997

1998

1999

2000

Industrial Round Wood

5613

8913

9261

10992

11104

15561

14087

13438

Wood Fuel

315

373

382

279

302

598

541

516

E. Calibration

This step is not considered necessary.

F. Estimation and Forecasting

The figures for 2005 were estimated based on regression relationship developed with the help of recent information (years 1997 to 2000).

G. Reclassification into FRA 2005 Classes

Reclassification was not needed because information on revenue from wood was available.

H. National Information for FRA 2005 Global Tables

Table: Input to Global Reporting Table

Round Wood Removal

Value of Round Wood Removal in Million Rupees

Forests and

Other Wooded land

Other Land with Trees

1990

2000

2005

1990

2000

2005

Industrial Wood Removal

5613

13438

9076

NA

NA 

NA 

Wood Fuel Removal

315

516

349

NA

NA 

NA 

Total (Round Wood Removal)

5928

13954

9425

NA 

NA

NA

Notes to table

1. The figures for 2005 are based on regression estimate using data from 1997 to 2000.

2. Separate information for OWL is not available.

3. No information is available for Other land with trees including TOF


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