Sal (Shorea Robusta) is a large evergreen tree belonging to dipterocarpaceae family. Sal forests occupy about 41% of total forest area of the state. Sal timber is extremely durable and is used for making railway sleepers, gun carriages, beams, doors, planking etc.

Trade Aspects

The state MFP Federation collects Sal Seed, a nationalised forest produce, through PCS from Sal forest areas. Sal Seed collected by federation is sold by advance open tenders/ auctions. The federation fixes upset prices and invites tenders for purchasing estimated quantities of Sal seeds from different units. Agents are appointed for all sold units and unsold units are worked out departmentally. The prices paid to the collectors are based on recommendations of an advisory committee. The prices could be different for different units. Sal seed collection is not as well organised as Kendu leaf collection.

Market potential of Sal seed remains under explored because of nationalisation and lower prices. Previously, state government had long term agreements with 4 oil extraction units of the state and all the Sal seed collected in the area allocated to each unit was handed over to it, after recovery of royalty at a predetermined rate plus the extraction expenditure. As on 1991, 68.5 % of Sal seeds had been committed to the industries (Source: MP Integrated Forestry Sector Project Preparatory Report, MP FD, September 1991). But it has been observed that the rate at which the federation was supplying it to the oil units, as part of committed supply arrangement was always substantially lower then free market rates. This had other implications in terms of promoting corruption (by siphoning up of seed to private traders) and inefficiency of the concerned industries (one of the effects being reluctance for technology up gradation). But even the state high court held this arrangement against petitions citing the above reasons. But all this has been done away with now.

This oil had a good export potential because of its substitution of cocoa butter. It was mostly being exported to Japan. In 1992, 300 tonnes of Sal oil had been exported to Japan at a FOB price of 1150 dollars a tonne and in 1996-7, 4068.63 tonnes of Sal fat had been exported from India. Even the deoiled cake used for cattle feed has got export potential (60$/ tonne) and about 48000 tonnes which is about 70% of total production was exported in 1992.