STRUCTURE, CONDUCT AND PERFORMANCE OF IMPORTANT TIMBER MARKETS OF NORTHERN INDIA
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Date
2012
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Abstract
ABSTRACT
Present study analyzed the “Structure, Conduct and Performance of Important Timber Markets of Northern India” by
taking a representative sample of 254 tree growers, pre–harvest contractors, commission agents and wholesalers/sawmillers.
Representative markets of Saharanpur, Yamuna Nagar, Amritsar, Hoshiarpur, Baddi and Mantaruwala were purposively selected
for the present study. Results of the study revealed that for majority of the tree growers the income from farm forestry was
prominent; with its share in the total household income ranging from 15.18 per cent in Amritsar area to 24.70 per cent in
Hoshiarpur area. Majority of the respondents were in the business of tree growing for reasons of long term financial security.
Important tree species planted on the farms were shisham, kikar, mango, eucalyptus and poplar. Eucalyptus and poplar were the
most prominent tree species as far as relative allocation of land to growing of different tree species is concerned. Timber
marketing in the region was found to be lacking in quality and timely market information, as also in enforcing grade
specifications and quality control. Only Saharanpur and HPSFC’s depots were regulated markets. The functioning of other
markets was regulated by local marketing organizations like Poplar Safeda Arhatiya Sangathan in Yamuna Nagar and Lakkar
Mandi Samities in Amritsar and Hoshiarpur. Yamuna Nagar market is a big market which handles about 250 thousand quintals of
timber daily of which bulk is that of poplar and eucalyptus. The timber markets in the study areas are working under imperfectly
competitive market situations tilted more towards oligopolistic nature of the market. Contractors, commission agents and HP
State Forest Corporation are three marketing intermediaries with whom producers deal directly. Channel involving producer --
contractor -- wholesaler/sawmiller -- consumer is the most important channel through which bulk of the timber is transacted.
However, in case of poplar and eucalyptus the channel: producer – contractor -- commission agent -- consumer was found to be
more prominent. Shisham is the main species of which an estimated average quantity of 245 quintals per tree grower is transacted
in different markets. Shisham was followed by mango with average transaction ranging from 120 quintals in Saharanpur market
to 245 quintals in Hoshiarpur market. Producer’s share for poplar ranged from 73.20 per cent in Hoshiarpur market to 77.50 per
cent of consumers’ price in Amritsar market. Similarly, in case of eucalyptus the producer’s share ranged between 66 per cent in
Yamuna Nagar market to about 80 per cent of the consumer’s price in Amritsar market. Contractor’s margins in Yamuna Nagar
were estimated to be about 13 per cent of consumer’s price for poplar and 20 per cent of consumer’s price for eucalyptus. In
other markets these were in the range of 4 to 8 per cent in case of poplar and 3 to 5.9 per cent of consumer’s price in case of
eucalyptus. HPFSC’s costs forms about 22 per cent of the consumer’s price while wholesaler/sawmiller’s margin were in the
range of 11 to 16.6 per cent of the consumer’s price. A high degree of market integration was there in the selected markets for
different timber species. Production area wise response regarding various problems related to market intelligence reveal that tree
growers and pre–harvest contractors of Yamuna Nagar and Saharanpur were relatively at a disadvantage as compared to their
counterparts in other selected timber producing areas. Difficulty in getting harvesting permit, late information, small size of
auction platform and high transportation charges were other important problems faced by the tree growers. Lack of market
infrastructural facilities is the major and the common problem faced by the commission agents and wholesalers/sawmillers in all
the study markets, followed by problems of unregulated vehicles and the lack of accommodation for the tree growers in the
markets. The results of the study suggest the need to assure tree growers of the remunerative returns, if not by support prices then
may be by further promoting wood-based industries and improving the industrial infrastructure for these industries.
Establishment of such industries in the vicinity of producing areas will send a right message to the tree growers with regard to
sustainability of the demand for their product. Also, there is a need to ensure proper conduct of timber market which is the
responsibility of the concerned public agencies. Forest corporations or tree growers’ cooperatives need to be promoted and the
same should show their presence to increase competition in the market to improve the efficiency of the timber markets.
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Keywords
spacing, sowing, planting, yields, crops, developmental stages, productivity, diseases, harvesting, biological development, Timber Markets , Performance ,North India