T14. Value of Non Wood Forest Product Removal

The value of Non Wood Forest Products (NWFP) derived from the “Forest” is an important component of the economic health of forest resources and support to local communities. This information helps in allocation of resources and in priority setting at national level planning (social, economic, sectoral and regional planning).

A. Global Classification and Definitions (FRA 2005)

Value of NWFP Removal

The market value of total annual removal of all primary Non Wood Forest Products (NWFP).

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

B. National Data Sources

ICFRE provides basic information on forest revenue by individual States and Union Territories in India. The period of the annual reporting is from April 1^st to March 31^st 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 1^st April 96 to 31^st 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 for procuring data.

- Forestry Statistics, India, 1996. 1998. Indian Council of Forestry Research and Education, Dehradun, Uttaranchal, India.

- Forestry Statistics, India, 2000. 2002.Indian Council of Forestry Research and Education, Dehradun, Uttaranchal, India.

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 “NWFP” 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 information is available for on few of the NWFPs and that from 1994 to 1997. However, information for Tannin is only available for 1994 to 1996, to complete the matrix information for 1996 has been assumed for 1997 as well.

Table: National Data

NWFP National Classes	Revenue from NWFP Removals (Rupees in million)
	1994	1995	1996	1997
Sal Seed	1.7	6.2	39.8	15.0
Bidi	1919.3	4583.7	4845.5	4625.6
Drug and Spices	1.0	0.6	4.9	10.7
Tannins	32.9	23.7	42.1	42.1
Grass and Fodder	33.0	36.0	17.6	49.4
Lac	0.0	0.2	1.6	0.9
Rattan	0.6	0.4	188.2	410.9
Bamboo	905.0	704.3	901.4	992.4
Other	172.5	231.1	246.7	388.7
TOTAL	3066.0	5586.2	6287.7	6535.7

E. Calibration

Not considered necessary

F. Estimation and Forecasting

Since past information is not available for 1990 and 2000 therefore support of regression relationship has been taken to estimate revenue from NWFP during 1990 and 2000 as well as to forecast for 2005. To make the result more realistic, outlier has been excluded for example information for 1994 was excluded for Sal, Bidi, Drug and Spices, and others”, 1996 was excluded for Lac, and 1997 was excluded for Rattan 1997. Similarly, information for 1990 has been assumed to be same as that for 1994 for Sal, Bidi, and Rattan. The following table provides results of this exercise.

National Classes	Estimation and Forecasting (Rs. Million)
NWFP	1990	2000	2005
Sal Seed	1.7	28.4	50.6
Bidi	1919.3	4768.8	4873.7
Drug and Spices	1.0	19.4	36.2
Tannins	9.8	55.9	55.9
Grass and Fodder	9.4	65.6	65.6
Lac	0.1	1.6	2.9
Rattan	0.6	532.1	532.1
Bamboo	623.2	1082.4	1311.9
Other	172.5	469.9	863.4
TOTAL	2737.5	7024.0	7792.2

G. Reclassification into FRA 2005 Classes

The following table indicates correspondence between national categories and FRA 2005 classes.

National Class	Percentage a National class that falls in a FRA class of NWFP
	1	2	3	4	5	6	7	8	9	10
Sal Seed	100
Bidi leave										100
Cane							100
Resin									100
Gum									100
Lac										100
Drug& Spice			100
Grass & Fodder		100
Tanning Material						100
Bamboo							100
Others										100

Notes: Following are the names of NWFP (FRA class) against the ID No. of each of the above column.

ID No	Name of Product	ID No	Name of Product
1	Food	6	Dying and Tanning & Construction material
2	Fodder	7	Utensils, Handicrafts
3	. Medicine	8	Ornamental
4	4. Medicinal Plants	9	Exudates
5	5. Perfumes	10	Others

H. National Information for FRA 2005 Global Tables

Following table provides information on revenue from NWFP organised by global FRA classes.

Table: Input to Global Reporting Table 14

FRA Class	Value of NWFP Removal in 000 MT
	1990	2000	2005
1	1.7	28.4	50.6
2	9.4	65.6	65.6
3	1.0	19.4	36.2
4
5
6	9.8	55.9	55.9
7	623.8	1614.5	1844.0
8
9
10*	2091.9	5240.3	5740.0
Total	2737.5	7024.0	7792.2

Notes to the table

1. Revenue from Gum (FRA class 9) is not available separately. It may be included in FRA Class 10.

2. It not known whether “taxes are included in the above data sets.

3. Information the point (forest or market etc.) at which information (value) is based is not known