non- wood forest products, economic importance, socioeconomic benefits, tribal community, production and trade of nwfp- national and international, recent economic patterns of nwfp, india's noteworthy produce

1. Importance of Non-wood
Forest based industry in
Indian economy
Parvati Tamrakar
M. Sc. Forestry 2nd semester
Department of Forestry, Wildlife & Environmental Science
Guru Ghasidas Vishwavidhyalaya, Bilaspur

2. Non-wood Forest Products
 ‘Non-wood forest products’ is a relatively new term used
generally to mean forest products other than wood.
 NWFP may be gathered from the wild, or produced in
forest plantations, agroforestry schemes and from trees
outside forests.
 They are useful substances, materials
and/or commodities obtained from forests which do not
require harvesting (logging) trees. They include game
animals, furbearers, nuts, seeds, berries, mushrooms, oil
s, sap, foliage, pollarding, medicinalplants, peat, mast, fu
elwood, fish, spices, and forage.

3. Economic Importance of NWFP
 NWFPs have been welfare, subsistence or livelihood
commodity since long and are traditional source of food,
fiber, medicine, etc for the forest dwellers. The forest dwellers
mainly belong to tribal communities.
 There is strong evidence that forest products play a
significant role in the livelihoods of the world’s rural poor.
 Forest products are the main source of income for the forest
dwelling population in many countries including India.
 It is estimated that of the 6.2 billion people on the planet, 25
percent depend to varying degrees on the forest's resources
for their livelihood and 350 million people living in or near
dense forest depend highly on them for their subsistence or
livelihood.
 Some 80 percent of the people living in developing countries
depend on non-timber forest products, such as fruits and
herbs, for their primary health and nutritional needs (FAO,
2008).

4. Contd...
 The most used categories of NWFPs are medicine, edible,
miscellaneous and fuel wood.
 Historically, the NWFP sector was neglected for many
decades from main stream forestry, and they were considered
as ‘minor’ (Minor Forest Produce), despite the fact that
monopoly rights over several such NWFPs/MFPs fetched a
good income for the Forest Department.
 After the ban on green felling, the income from NWFPs in the
total income of the Department became the major one with
that from timber marginalized, in many states.
 Export of NWFPs and its products contributes 68% of the
total export from forestry sector.
 Non-timber forest products (NWFPs) are of socio-economic
and cultural importance for the forest dwelling communities,
particularly for the tropical countries like India.

5. Socio-Economic benefits of NWFP
 A better understanding of NWFPs’ overall socio-
economic contributions to the subsistence and income of
local communities and to national economies facilitates
better program response. NWFPs play an important role
in food security, nutrition and community health.
 Their benefits are relatively more important for poorer
households, women and disadvantaged groups and this
has important consequences for planning NWFP
activities. Interventions need to involve people’s
participation in the development process and the
equitable distribution of benefits to different groups.

6. Tribal community & NWFP
 The tribal community of India collects non-timber
forest products (NWFPs), estimated to be worth
around Rs. two trillion annually. However, these
collections don’t translate into prosperity and
steady income for the community.
 Products such as mahua seeds, tendu leaves, sal
seeds, kaunch seeds, chironjee, wild
honey, bael, jamun, karanj seeds etc. are included in
the NWFPs. Though authorities emphasise that the
tribal people are the real owners of the NWFPs and
a minimum support price (MSP) is announced for
several NWFPs, the ownership of the tribal
communities largely remains notional.

7. Contd…
 The central and state governments have been running
several programs to support the tribal communities in
increasing their earnings from the NWFPs, with the
latest being the Van Dhan Yojana in 2018 that aims to
ensure the fair return of the NWFPs.
 Tribal leaders, environmentalists and experts working
with the tribal communities believe a continuous
focused effort is required to ensure that the tribal people
get a proper value of the NWFPs collected. They also
believe that it also requires a special focus on women of
the tribal communities.
 According to the Tripura centre of the Indian Council of
Forestry Research and Education, NWFPs contribute to
the local economy but they are not reflected in the state
Gross State Domestic Product (GSDP).

8. State-wise
availability of
NWFPs.
Map from
Ministry of
Tribal Affairs,
Government of
India.

9. Total Production and Trade in forests
products- International and National
 Forestry & logging contributes to 1.2% of India's GDP
(Economic Survey, Ministry of Finance, 2011).
 The Indian forest products industry had total revenue of
$65,844.6 million in 2011, representing a compound
annual growth rate (CAGR) of 5.5 percent between 2007
and 2011.
 Industry consumption volumes increased with a CAGR
of 0.2 percent between 2007-2011, to reach a total of
355.4 million cubic meters in 2011.
 The performance of the industry is forecast to accelerate,
with an anticipated CAGR of 7.7 percent for the five-year
period 2011 - 2016, which is expected to drive the
industry to a value of $95,467 million by the end of
2016.

10. Contd…
 Global trade (exports) in primary wood and
paper products in 2006 excluding intra-regional
trade is estimated as in America (4 to 6.5 billion
US$), Africa (1 to 2 billion US$), Asia (1 to 2
billion US$), Oceania (0.5 to 1 billion US$)
(FAO, 2008).
 Europe accounts for nearly half of the world’s
trade in forest products with imports of US$158
billion and exports of US$184 billion (FAO,
2007)

11. International and National Import and
Export Value (1000US$) of the Total
Forest Products

12. Global Production & Trade of NWFP
 There has been increasing trends in the trade of forest
products particularly that of Non-Wood Forest Products
(NWFPs). Increasing trade in forest products (both
timber and non-timber) has supported economic growth
and has helped in reducing poverty in a number of
emerging countries.
 The estimated total value of the most economically
important NWFPs in world trade is about US $11 billion
annually (FAO, 2007).The reported value of non-timber
forest product removals amounts to about US$18.5
billion for 2005, in which food products account for the
greatest share (FRA, 2010).
 According to WHO, the majority of the world's human
population, especially in developing countries, depends
on traditional medicine based on MAP (WHO, 2002).

13. Contd…
 Among the most important NWFPs contributing to
international trade are medicinal plants (US$ 689.9
million), nuts (593.1), ginseng roots (389.3), cork
and cork products (328.8), and essential oils
(312.5).
 At least 150 NWFPs (e.g. honey, gum arabic, rattan,
edible bamboo, cork, forest nuts and mushrooms,
essential oils, and plant and animal parts for
pharmaceutical products, etc.) are significant in
international trade (FAO, 2005).
 World production of essential oils (excluding
turpentile oil) is estimated to be about 105 000
tones to the tune of US$ 922 million.
 The monetary value of Medicinal and aromatic
related global trade is over 60 billion USD.

14. Contd…
 A survey of published medicinal floras conducted by members
of the Medicinal Plant Specialist Group of the Species
Survival Commission, the World Conservation Union (IUCN)
suggests that 72,000 species of higher plants are used
medicinally worldwide, approximately 17 percent of the
world's higher plant flora.
 Relatively few NWFPs including medicinal plants species are
cultivated.
 Despite the globalization of the World’s economy and the rise
of industry, NWFPs still remains an important source of
income for hundreds of millions for rural livelihoods.
 FAO estimated that NWFPs are capable of generating 4
million man-years of employment annually (FAO, 2002; FAO,
2005).
 The market for NWFPs has grown by nearly 20 percent
annually over the last several years, and the related herbal
medicine market at a rate of 13-15 percent annually.

15. Production & Trade of NWFP in India
 India's rich biodiversity of 45,000 plant species is spread
across 16 Agro-climatic zones. Out of these, about 3000
NWFP species yield are found but only 126 have developed
marketability.
 These include medicinal plants, edible plants, starches, gums
and mucilage's, oils & fats, resins & oleo-resins, essential oils,
spices, drugs, tannins, insecticides, natural dyes, bamboos &
canes, fibers & flosses, grasses, tendu leaves, animal products
and edible products.
 The total value of non-timber goods and services available
from tropical deciduous forests in India was estimated from a
minimum of $219 to a maximum of $357 per hectare
annually.
 India holds monopoly in world trade over some of the NWFPs
such as Karaya gum (Sterculia urens), myrobalans (Emblica
officinalis, Terminalia chebula), Sandalwood chips and dust
(Santalum album).

16. Contd…
 Minor forest products contribute about 50 percent to
Indian government forest revenue and 70 percent of
forest-based product exports (ICCF, 2005).
 In India over 50 million people are dependent on
NWFPs for their subsistence and cash income.
 About 70% of the NWFP collection in India takes place
in the tribal belt of the country. Around 55 % of
employment in forestry sector is attributed to the sector
alone.
 Employment of women in forest based enterprises in
India was estimated to be approximately 571.533 million
days annually of which 90 percent is in small scale
enterprises using NWFP.
 In the case of Gujarat, the contribution of NWFPs to the
total households’ income varied from 20.1 percent to
34.1percent while in the case of West Bengal, it ranged
from 26.5 to 55.5%.

17. Contd…
 Commercial NWFPs are estimated to generate Rs. 3 billion
(US$ 100 million) annually in India. It exports a large
number of NWFP to other countries earning foreign exchange
revenue to the tune of Rs. 10 billion (US $ 384 million)
annually (FAO, 1995).
 The export of NWFP has grown by 20-25 percent over the
past few years and during 2006- 07, India earned Rs 39.7
billion from export of NWFP and their valued added extracts.
 Total export value of Ayush and Herbal products from India
is estimated as Rs. 764.25 and 570.76 crores respectively
during 2009-10 (NMPB; State Forest Sector Report India,
2010).
 India stands at third position with a share of about 16 percent
in essential oil trade. Indian production of the essential oils is
estimated to be 17 000 tonnes valued about US$ 195 million.
 The contribution of NWFP and eco- tourism to the Forestry
Sectors gross value (of Rs 259.85 billion) is 16 percent.

18. Contd…
 Tendu leaves were estimated to provide employment
nearly to 4 million persons annually by way of Bidi
(Local cigarette) manufacturing.
 India also has a 42 percent share of total removals in the
category of other plant products, such as tendu leaves
and lac, followed by Brazil and Mexico (FRA, 2005).
 India produces 20 000 tonnes of exudate gums in which
gum karaya alone contributes about 15 000 tonnes.
India earns around Rs. 1200 million by the export of
gums.
 Studies in Indian states of Orissa, Madhya Pradesh,
Himachal Pradesh and Bihar have also indicated that
over 80 percent of forest dwellers depend entirely on
NWFP, 17 percent landless depend on daily wage labour
mainly on collection of NWFP and 39 percent people are
involved in NWFP collection as a subsidiary occupation.

19. Contd…
 The potential of production of Tendu leaves in Chhattisgarh is
approximately 18 lacs standard bags annually, which is nearly
20 percent of the total Tendu leaves production of the
country.
 During the year 2012, around 17.15 Lakh Standard Bags of
Tendu patta were collected having value of Rs 646.90 crores.
The production of sal seed in the state has been reported as
646.90 lac quintals worth Rs. 29.68 crores.
 The approximate potential production of Harra in the state is
about 60,000 qtl/year.
 Gums production is estimated as Kullu gum (760 quintals of
sale value 174.81 lakhs).
 Madhya Pradesh accounts for among largest forest area and
also largest population of tribal people in India.
 The livelihoods of tribal people are intimately linked to the
forest.
 The collection and sale of NWFPs accounts for between 40
percent to 63 percent of total annual income of the rural
population and provides an important income generating
activity to offset seasonal unemployment rate.

20. Recent Economic
Patterns

21. Spices Industry And Export
 In FY20, spices worth US$ 3.65 billion were exported.
 During FY19, a total of 1.10 million tonnes of spices and spice
products valued US$ 2.80 billion was exported from the
country as against 1.02 million tonnes valued US$ 2.78 billion
in FY18, registering an increase of 7 per cent in volume.
 Top 10 importers of Indian spices in FY19 were US, China,
Vietnam, Hong Kong, Bangladesh, Thailand, UK, UAE,
Malaysia, and Sri Lanka.
 During FY19, top 10 exported spices and spice products in
terms of value were chilli, mint products, spice oils &
oleoresins, cumin, turmeric, pepper, curry powder/paste,
cardamom seeds, other spices like Tamarind, Asafoetida, and
Cassia, and Garlic.
 During FY19, India’s chilli export stood at 468,500 tonnes,
cumin export at 180,300 tonnes, turmeric export at 133,600
tonnes and cardamom large export at 860 tonnes.

22. Contd…
 In FY20 (till December 2019), ginger export showed
the highest growth of 47 per cent with 19,410
tonnes, followed by cardamom with 31 per cent at
1,060 tonnes and cumin with 14 per cent at 7,350
tonnes.
 Spices Board of India: The Spices Board of India
works towards the development and worldwide
promotion of Indian spices. It provides quality
control and certification, registers exporters,
documents trade information and provides inputs to
the central government on policy matters. The
board participates in major international fairs and
food exhibitions to promote Indian spices, apart
from organising various domestic events.

23. Shellac And Forest Products
Industry & Exports
 It is the largest exporter of shellac.
 Used for wood polish, food and drug coatings and
cosmetics.
 Export of shellac from India stood at US$ 43.32
million in FY19 and US$ 18.12 million in FY20 (till
July 2019).
 Shellac and Forest Products Export
Promotion Council (SHEFEXIL): Formerly
known as Shellac Export Promotion Council, have
been working in partnership with the industry since
1957 as the catalysing agency for long-term
development and export promotion of shellac and
lac-based products.

24. Tobacco Industry And Exports
 India is the second-largest tobacco producer and
exporter in the world.
 Total export of tobacco and manufactured tobacco
substitutes stood at US$ 904.87 million in FY20. Indian
tobacco is exported to around 100 countries.
 Total export of unmanufactured tobacco stood at US$
570.30 million in FY19 and reached US$ 437.54 million
in FY20 (till January 2020).
 India export unmanufactured tobacco primarily to
Belgium, Korea, Nigeria, Egypt and Nepal. Western
Europe is a key market for Indian tobacco export.
 Tobacco Board: The Tobacco Board of India is a
facilitator for tobacco growers, traders and exporters. By
creating synergies between these stakeholders, the
Board fosters a vibrant enterprise, with a deep social
conscience and strong national commitment.

25. Contd…
The Board estimates demand and regulates the production
of FCV tobacco to match demand to ensure a fair price
for the produce. It assists tobacco farmers in securing
crop loans, quality seeds, fertilisers and other critical
inputs, and also counsel’s farmers on GAP to produce
quality tobaccos to meet the evolving international
demand. In addition, the Board conducts auction for the
sale of tobacco in a competitive and transparent
environment. On the export front, the Board strives to
improve the existing markets and develop new markets
for Indian tobacco and tobacco products by undertaking
brand building exercises and participation in
international tobacco exhibitions. The Board sponsors
trade delegations to potential importing countries and
invites delegations from other countries.

26. Silk Industry And Export
 India is the second largest producer of silk.
Sericulture provided employment to over 9.1 million
people in India during FY19.
 Export of silk and silk products from India reached
US$ 291.36 million in FY19 and US$ 243.52 million
in FY20 (till November 2019).
 The silk products exported include natural silk
yarns, fabrics, made-ups, readymade garments, silk
carpets and silk waste.
 Readymade garments made of silk formed the
largest share in export between FY19 at US$ 189
million, followed by fabrics and made-ups at US$
57.72 million and silk waste at US$ 18.56 million.
Other products made up for rest of the export
earnings.

27. Contd…
 During April-November 2019, the export of
readymade garments made from silk stood at US$
83.26 million, followed by silk carpets at US$ 14.64
million, silk waste at US$ 9.67 million and fabrics
and made ups at US$ 38.05 million.
 Indian Silk Promotion Council: The Indian Silk
Promotion Council (ISEPC) has initiated
programmes for growth and development of the silk
industry. ISEPC organises trade shows and fairs
across the world to promote trade with different
countries. The council also facilitates meetings
between exporters and potential customers.

28. Some of India's noteworthy
produce includes
 Sesame seeds: Food applications and ayurvedic health
treatments. India exported sesame seeds worth US$ 514.60
million in FY19 and US$ 471.41 million in FY20 (till January
2020).
 Guar gum: Emulsifier, thickener and stabilizer for a wide
range of foods, cosmetics and pharmaceuticals. India
exported guargum worth US$ 674.88 million in FY19 and
US$ 342.53 million in FY20 (till January 2020).
 Tendu leaf: Bidi wrapping. Export of US$ 7.08 million in
FY19 and US$ 4.54 million in FY20 (till January 2020).
 Tree-borne oil seeds: Biodiesel, medicines, dyes, tanning,
fertilizers, pest control and varnish.
 Medicinal plants: Cosmetics and medicines.
 Bamboo, rattans and canes: Furniture, handicraft,
housing andfood, paper. Bamboo export reached US$ 0.69
million in FY19 and US$ 0.35 million in FY20 (till January
2020).
 Isabgol: Purgative.

29. Key Markets and Export
Destinations
India has been recording consistent growth in the
export of NTFP over the last five years. It is the
largest exporter of guar gum & sesame seeds, and
the second largest exporter of medicinal plants in
the world. India produces large volumes of NTFPs
that are globally acknowledged for their quality.
Moreover, NTFPs contributes significantly to the
lives of millions of rural and forest-dependent poor
people. Guar gum, vegetable saps and sesame seeds
are some of the major export items. The main
export destinations for guar gum are US, China and
Germany.

30. References
 www.en.wikipedia.org
 www.ibef.org
 www.tropecol.com
 www.india.mongabay.com/2020/02/india-
urgently-needs-to-streamline-multi-billion-
rupees-worth-ntfp-market
 www.iifm.ac.in