Policies influencing NTFP management
and trade
The significance of NTFP to the state was
perhaps realised first when the report of the Industrial Survey
Committee appointed by the erstwhile government of central
provinces and Berar was published in 1939. The report emphasised
NTFP as a source of forest revenue as well as for creation
of employment in the rural areas. As a consequence of this
realisation trade in some NTFP was nationalised. The initial
focus given to the idea of integrating tribal development
through NTFP was further emphasised by the recommendations
of the Scheduled Areas and Scheduled Tribe Commission (1960-61),
commonly known as Dhebar Commission. Some of the findings
(in the 50s) are quite interesting and holds true even now
after almost half a century.
- With the rich resource base that the forest
areas possess, there is no reason why there should be unemployment
in these areas.
- The forest department in consultation
with agricultural industries and development departments
in each region should prepare a time schedule with the intention
of providing work all the year round. This should include
among others collection of forest produce, exploitation
of minor forest produce and exploitation and processing
of major forest produce
- Government should accept as a policy that,
as far as possible it would take steps to eliminate the
middlemen between the inhabitants of the forests and the
forest department in relation to exploitation of the forests.
The system of monopoly operating at the moment must in any
case be ended.
- Very little attention has been paid to
the processing side of the minor forest produce and the
produce is being sold in raw form. Processing of NTFP can
be a great source of employment for the tribal people. It
involves training, of course, and the supply of tools and
instruments. This can be organised on a co-operative basis.
It would also be useful to see what the report
of Study team on Tribal Development Programmes constituted
by the Planning Commission and submitted to the Prime Minister
in 1969 had to say "…The regulation of tribal rights
should not be carried beyond the requirements of prudent forest
management, and become an irksome restriction as, for example,
in the case of denial to the tribals' freedom, which they
have enjoyed for hundred of years in relation to collection
of NTFP, which does not harm the forest in any way. By the
induction of contractors to this business, the FD has deprived
the tribals of subsidiary incomes and thereby dealt a severe
blow to their economy. The fear that restoration of the privileges
will lead to a loss of revenue is no argument for extinguishing
without payment of compensation, a traditional right, the
exercise of which does not in any way detract the value of
forest..." It went on to say that if there are losses
to be borne by the state by foregoing the restriction, let
it be so. Further it states that the only exception could
be as has been done in the case of AP, where a tribal co-operative
agency sponsored by the government is awarded monopoly rights
and can be depended upon to provide a remunerative price to
the tribals.
The various acts and rules that govern the
management of NTFP in the state are -
| 1. |
AP Abnus Leaves Act, 1956 |
| 2. |
The AP Forest Act, 1967 |
| 3. |
The AP Forest Produce Transit Rules,
1970 |
| 4. |
The AP NTFP (Regulation of Trade) Act,
1971 |
| 5. |
The AP NTFP (Regulation of Trade in Abnus
Leaves) Rules, 1970 |
| 6. |
The AP Forest Contract (Disposal of Forest
Produce) Rules, 1977 |
| 7. |
The AP Scheduled Areas NTFP (Regulation
of Trade) Act, 1979 |
| 8. |
The AP Forest Produce (Storage and Depot)
Rules, 1989 |
| 9. |
The AP Scheduled Areas NTFP (Regulation
of Trade) Rules, 1990 |
| 10. |
Various Notifications under the above
Acts and Rules |
Definition of NTFP
Until 1971 when AP NTFP Act was enacted,
the produces that hence came to be known as NTFP came under
the head of forest produces. Forest produces were defined,
rather named in the absence of any descriptive definition
in the AP forest Act, 1967, the first comprehensive legislation
in relation to forest in the state. There were 3 categories
of forest produces -
-
Timber, Bamboo, Charcoal,
Rubber, Cacutchour, Catechu, Wood-oil, Resin, Natural
varnish bark, Lac, Mahua flower and seed, Myrobalans,
Tunki leaves, Rousa grass, Rauwolfia Serpentina, Adda
leaves. These produces were forest produces whether they
were found in the forests or not. Later Palas leaf, Tamarind
fruit, Custard apple, Soap nut, Pungam fruit, Marking
nut, Cleaning nut, Amlafruit, Chironji fruit, Teak fruit,
Tuniki fruit, Nux vomica fruit and wood apple fruit were
included in the list in 1974.
-
This category virtually
listed all that could be found in forest including trees,
leaves, plants, wild animals and birds as well as their
parts, surface soil, rock and minerals.
-
Such other produces
as may be prescribed
The AP NTFP Act of 1971 then defined Minor
Forest Produce as any forest produce other then timber, trees
(Excluding bamboos) and charcoal, specified in the schedule.
So this definition virtually puts all the forest produces
under NTFP category except for the produces as specified,
more or less in line with the AP forest act. But still it
does not say that this category is non-timber (or wood) forest
produce. After that there has been no other effort to define
this category of the forest produce. This despite the fact
that timber contributes less then 20% of the forest revenue,
it continues to be the major forest produce and the other
forest produces together contributing much more then the former
remain as minor forest produce.
NTFP lease and licensing policy
The NTFP available in the state can be categorised
into three when it comes to their collection and management.
While the forest department deals Beedi leaf and bamboo, most
of the other commercially important items come under the monopoly
of GCC. Territorial forest divisions deal the third category
locally. The present study does not cover trade and policy
environment of Bamboo.
The first specific act in the state on a
forest produce was with regard to Beedi Leaves in the year
1956 that laid the way for nationalisation of Beedi Leaves.
Under this, the right to collect Beedi leaves was sold by
public auction on lump sum contract. The private pattadars
used to sell Beedi leaf grown in their holdings to the private
contractors usually on negotiated terms. When demand and commercial
value of Beedi leaf increased private contractors with the
help of influential pattadars and local villagers started
pilfering and smuggling beedi leaf from the forests and government
lands leading to considerable loss of revenue to the government.
The leaf contractors also used to offer very low price for
the leaves sold to them by private growers and pay low wages
to the labourers engaged in the operations.
Government in the state being only interested
in the royalty, did not even keep any record of beedi leaf
transaction during this period. According to the information
about revenue figures, the average sum collected was Rs. 112
Lakhs per annum during the ten years immediately before nationalisation.
The government thought this was very less then the potential.
To arrest this trend the Central Board of Forestry recommended
legislative measures to control the trade of beedi leaf. The
1967 forest act in the meanwhile had empowered the state to
make rules for control of forest produce in transit or possession.
The concerned rules came into force in 1970. Beedi leaf trade
was nationalised in 10 districts of Telangana in 1970 through
AP NTFP (Regulation of Trade) Ordinance that led to AP NTFP
(Regulation of Trade in Abnus Leaves) Rules, 1970. The forest
department itself undertook the responsibility to collect
and market the leaves through appointed agents.
Immediately in the following year AP NTFP
(Regulation of Trade) Act was enacted. What makes interesting
reading is the statement of objects and reasons of the above
Act. This will give away the purpose behind the state wanting
to control the NTFP trade and is therefore reproduced verbatim
'At present, the
sale of beedi leaves in the state is governed by the
AP Abnus Leaves Act, 1956 and the rules made there under.
Sub rule (3) of Rule 4 of the AP Abnus Leaves Rules
1957 provides that the contractors of units of the persons
licensed under sub rule (2) thereof only shall be entitled
to obtain licenses for collection, storing, sale and
transport of Abnus Leaves from the bona fide patta lands
situated within their respective units on payments of
proportionate royalty to the pattadars concerned. Recently
some Pattadars challenged the validity of subrule (3)
of rule 4 in the high court on the ground that it infringes
their fundamental rights and the High Court stayed operations
of the said rule. In the event of the High Court upholding
the contentions of the Pattadars, the pattadars will
be at liberty to sell their produce to whomsoever they
like and there is also risk of their collecting government
produce from the adjacent forest lands and passing it
off as their own, since it is not possible to distinguish
it by affixing any mark thereon as in the case of timber.
This position will apply equally to any other NTFP as
well. This will result in heavy loss of revenue to government
besides other risks involved therein. To prevent the
loss of revenue to the government, it has become necessary
to regulate in the public interest, the trade of certain
NTFP by creation of state monopoly in such trade in
the state and it was accordingly decided to undertake
legislative measures for the purpose beginning with
Beedi leaves. As the state legislature was not in session,
the AP NTFP (Regulation of Trade) Ordinance, 1970 was
promulgated by the governor on the 6th October, 1970.
This bill seeks to replace the said Ordance by an Act
of the state legislature.' |
This clearly spells out the primary reason
for creating monopoly conditions in case of forest produces,
even if it is in the field of private growers. The state later
also controlled the activity of curing and processing Beedi
Leafs through an amendment. The only concession granted was
that private growers can register themselves with the appropriate
authority and be paid a rate higher then the wage rate to
be paid to collectors. But the rider was that growers have
to state the expected amount of NTFP production so that there
is no possibility of passing off the produce collected from
forest as grown in private land! The objectives of nationalisation
also included -
The salient features of AP NTFP (Regulation
of Trade) Act, 1971 are -
| 1. |
The Act applies to whole of AP |
| 2. |
Restrictions on purchase of transport
of NTFP - The forest produces are subjected to control
of transport, storage and sale as prescribed |
| 3. |
Constitution of Advisory Committee that
among other things will be responsible for price fixation
|
| 4. |
Opening of depots taking into consideration
convenience of the growers and prominent display of prices
fixed at the depot |
| 5. |
Government Authorised Officer or Agent
to purchase NTFP - The authorised officer or agent is
bound to purchase the NTFP offered for sale but the former
can refuse on the grounds of quality |
| 6. |
Registration - Yearly registration of
every grower other then the government specifying the
quantity likely to be available |
| 7. |
Yearly registration of manufactures of
finished goods using NTFP and exporters of NTFP as prescribed |
| 8. |
Disposal of NTFP as per the direction
of the government |
| 9. |
Any person authorised by the government
can search and seize. |
| 10. |
The first schedule of forest produces
only contained Beedi Leaf. The government however kept
with itself the power to add or modify the schedule list.
|
While the 1971 Act was applicable to whole
of the state, the state came out with a separate Act in 1979
- The AP Scheduled Areas NTFP (Regulation of Trade) Act, 1979
for regulating the trade of certain NTFP by creation of a
state monopoly in such trade in the scheduled areas of the
state. This was enacted as per the powers coffered by the
sub paragraph (2) of paragraph 5 of the Fifth Schedule to
the Constitution of India after consultation with the AP Scheduled
Tribes Advisory Council. While the government had granted
concessions to the Scheduled tribes in the state for removal
of timber, bamboo and other forest produces for domestic and
agricultural purposes from protected forests under rule 3
of the AP Protected Forests Rules, 1970, as per the 1979 regulations,
the government appointed GCC as their agent for the purpose
of purchase and trade of NTFP.
The government every year orders for execution
of lease agreement with GCC for collection of NTFP. Then the
PCCF enters into an agreement with GCC for one year that last
from 1st July to 30th June of next year. The lease agreement
confers monopoly rights on the corporation for trading in
the notified items. The other features of the agreement are
-
-
The corporation is
exempted from payment of security deposit for the NTFP
unlike say beedi leaf, where the contractors have to do
so.
-
This year a new clause
has been included saying that the NTFP units has been
handed over to GCC with effect from 1st July 2002 to 30th
June 2003 or till the agreement with Gram Sabha is worked
out whichever is earlier.
-
The corporation shall
during the period of this agreement collect, store, remove
and dispose produces subject to the conditions and restrictions
put from time to time.
-
The corporation shall
not dispose off without obtaining prior permission in
writing of the DFO for which permission may be refused
by the later without assigning any reason thereof.
-
In case of any questions
arising with regard to or any objection being taken by
any person to the corporation's right to collect or store,
the DFO can prohibit or regulate such collection. And
the corporation shall not claim for compensation for any
loss it may incur due to the above.
-
The collection and
removal of produce shall be effected only through printed
permit and routes as approved and ordered by the DFO.
-
The tribals living
in the sanctuary areas can be permitted to collect NTFP
only if they carry identity cards issued by GCC and attested
by the wild life wardens of the concerned area.
-
The corporation shall
be entitled to appoint agents to supervise the work of
collection and removal of produce but only after due identification
and issuance of permits from the DFO.
-
The corporation shall
be responsible for the acts of omission by itself or the
agents and will bear the damage resulted due to that.
The DFO will be the final authority for assessing the
damage in this case.
-
The corporation shall
maintain correct accounts showing the yield obtained every
month, cost of collection, quantity disposed off and the
amount realised in the form prescribed by the DFO and
shall submit such accounts once in a year.
-
Rentals will be paid
@15% of the procurement price of total quantity of NTFP
procured subject to payment of minimum rentals equal to
the average of the previous three years. Such rentals
shall be paid by book adjustment.
-
The corporation shall
at all times comply with the provisions of AP Forest Act,
1967 and any statutory modifications thereof. The PCCF
shall have the right of cancelling the agreement in breach
of above and to seize the stocks of the corporation.
-
The GCC officers are
authorised to search and seize for NTFP in the areas it
operates. GCC is also authorised to have manned check
gates to carry out its responsibility.
Following table gives the list of NTFP under Lease agreement
with GCC Ltd. As can be observed from the same, the list contained
35 items to start with. However the forest department from
time to time can modify the list. So there have been certain
additions and deletions from the original list if the present
list is observed.
| 1980 |
2001 - 2002 (In Comparison to
1980) |
2002-03 (In comparison to 2001-02) |
| Addanara, Adda leaf, Peddarara, K T Bundles,
Koperi Grass, Thatching Grass, Gantubarangi, Karivepaku,
Nallateega, Neem Seed, Rella Bark, Tangedu Bark, Naramamidi
Bark, Wood Apples, Sal Resins/ Kernel/ Seed, Hill Brooms,
Wild Brooms, Sheekakai, Amla Fruit and Seed, Cleaning
Nuts, Chironji, Rock Bee Honey, Apiary Honey, Kusum Seed,
Myrobalans, Mahua Flower, Mahua Seed, Marking Nuts, Nux
Vomica Fruit and Seed, Pungam Fruit and Seed, Rauwolfia
Serpentina/ Roots, Soap Nuts, Honey Wax, Gums, Tamarind
(Shell, Seeded, Deseeded, Green, Seed) |
+ Teripods, Maredugeddalu, Sugandhiphala-
Addanara, Peddarara, K T Bundles, Koperi Grass, Thatching
Grass, Gantubarangi, Karivepaku, Nallateega, Neem Seed,
Rella Bark, Tangedu Bark, Naramamidi Bark, Wood Apples,
Sal Resins/ Kernel/ Seed |
+ Naramamidi Bark |
The lease agreement with GCC however is not
particular that the agency has monopoly only in the scheduled
areas. This implies that the agency has monopoly rights over
listed NTFP all over the state. As marketing of NTFP is confined
to a limited number of items and only to Tribals, marketing
other commodities in the tribal areas and marketing in non-tribal
areas is done by FD through auctions.
Further under the AP Panchayat Raj Act of
1994 and AP Panchayat Raj act (Amendment) Act 1998, the eleventh
schedule has been amended and 29 subjects transferred to Panchayats.
This includes Minor Forest Produce. In exercise of the powers
conferred by sub section (i) of Section 268 read with section
242-1 of Andhra Pradesh Panchayat Raj Act, 1994 (Act No. 13
of 1994), the state is considering to make rules relating
to ownership and disposal of minor forest produce in schedule
areas. But the said rules to transfer the ownership rights
of NTFP to Panchayats is yet to see the light of the day.
Pricing
The AP NTFP (Regulation of Trade) Act, 1971
stated that government will fix the price of the produces
in consultation with the advisory committee constituted. The
points to be regarded the for fixing the prices have also
been mentioned -
| 1. |
Price of the respective NTFP
obtained or fixed under this act, or any enactment during
the preceding 3 years in respect of the area comprised
in the unit. |
| 2. |
The Quality of the NTFP grown in the
unit |
| 3. |
Transport facilities available in the
unit |
| 4. |
The cost of transport |
| 5. |
The general level of wages for unskilled
labour prevalent in the unit |
The committee for fixing the prices of Beedi
leaf has as its members people from forest department, and
representatives of beedi leaf growers, collectors, contractors
and beedi manufacturers. The responsibility of fixing the
price in case of other produces lies with GCC. Initially,
the pricing by GCC was done after deducting certain percentage
from the market price at the nearest wholesale market. These
percentages were arrived at by working out the percentage
of the total actual expenditure on account of that item to
the actual turnover of the previous year. The deductions used
to be almost 50% of the nearest wholesale prices. But a notification
dated 31/12/1969 directed the corporation to not deduct anything
on account of forest rentals and establishment charges, as
the state government will reimburse that. Even the losses
borne by the corporation in spite of all their efforts to
sell profitably will be subsidised by the government. The
purchase was to be fixed on the basis of sale prices of previous
5 years.
Then again the board of Directors of GCC
discussed in detail regarding the pricing policy and decided
through resolution to restrict the deductions to 15% on account
of overheads and respective decided % on account of driage
(e.g. for Myrobolans it is 6%). But in several of the produces
the mandatory deductions are not made to provide higher returns
to the tribal collectors.
Normally, the price is fixed at the beginning
of the season basing on the past performance, crop prospects
and market trend of a particular commodity. The corporation
has in the last some years going in for disposal of stocks
through forward sale wherever feasible. This also gives the
corporation idea about the price and accordingly it fixes
the procurement price.
The rest of the NTFP apart from Beedi leaf
and the ones under the monopoly of GCC, are dealt by concerned
DFOs. If there is a scope for commercial exploitation of NTFP
in any particular division, the DFO calls for advance tenders
and hands over the rights of buying to the highest bidder.
Other government regulations in NTFP
trade
No forest produce can be moved into or from
or within the state by land or water unless such produce is
accompanied by a permit issued and have to be produced for
check immediately on demand. The DFO or an officer or person
duly authorised by him shall issue such permits and the DFO
has the right to refuse permits if he is not satisfied of
the ownership. Various types of transit permit issued as per
its starting and destination points.
The Andhra Pradesh Forest Produce (Storage
and Depot) Rules 1989
- Section 3 of the above says that any person
or institution desirous of setting up a forest depot shall
obtain a license from the Divisional Forest Officer in prescribed
format giving full particulars of land, S. no, Municipality
or Mandal and the extent and title deed registered in favour
of any person from whom it is leased it.
- The documents to be furnished are lease
deed or undertaking of the hired premises, copy of the factory
license, sales tax registration.
- On receipt of an application in Form 1,
DFO shall make such enquiry as he deems to fit, and after
satisfying himself as to the genuineness of the need etc
may grant a license in Form 2. A fee of Rs 100 for grant
of license or its renewal shall accompany every application.
- Security deposit of Rs 5000. The discretion
of the Security deposit in each case shall be vested with
the DFO.
- Under section 8 of the above rule it says
that all transactions involving receipt storage and disposal
shall be recorded in two separate registers.
|
