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Sal seed production has fluctuated randomly
as seen from the graph. On the whole it can be seen that while
production has increased in 70s, it has declined in last 2
decades. There are also allegations at the same time that
MP has not exploited even a miniscule percent of its production
potential.
The dip in production in mid 90s is because
of the large-scale borer attack that struck Sal forests during
that period. Many trees were felled as a result (there is
strong objections to this being a effective solution). After
division of the state, there has been a big increase in production
in 2000-01. It is to be seen whether this is sustained.
Sal seed being a nationalised produce, the
federation fixes the price. Though the MFP federation has
increased rates almost every year since 1996, there are allegations
of underpayment.
Economic Aspects
A labour can approximately collect 15 kg
of Sal seed per day on an average day and it can go up to
20 kgs in good seasons (Bhatnagar and Shukla, 1994). Approximately
50% of what is collected goes as waste and it takes 2 days
for drying and processing. At current rates of Rs 3.50 per
kg, a person can earn Rs. 35 a day in a peak production year.
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. |