Forest based cellulosic materials for the paper industry in India

This study should be a valuable addition to the literature on the subject. Contrary to the earlier thoughts, it has been reasoned here that the paper industry's demand for bamboo and hardwood by the turn of the century could grow up to 1.7 million tonnes and 2.75 million tonnes, respectively. This demand can be met, without conflicts amongst the users, by harnessing only a portion of estimated produc tive potential through conventional and non conventional measures of resource manage ment.

Logic and feasibilities of a number of approaches for pricing forest-based cellulosic materials have been assessed. The assessments indicated that none of the suggested bases would adequately satisfy the concerned parties, but a mix of the bases such as past and current royalty rates, general price index, market price of comparable goods could be used for fixing the administered prices of the natural forest produce in the short run. The most logical and viable alternative for the long run would be to raise the materials for specific manufacturing units and to price them on the basis of, but not necessarily equal to, the production costs.

The study further suggests that the industry may also choose to develop the alternative of entering into agreements with the farmers who have been raising tree crops. This may be facilitated through supplying effluent water for limited irrigation, encouraging the adoption of multi-purpose tree species, etc.

The industry's argument for lease of land to enable them to raise the required woody materials must also be assessed at the highest policy-making level. It is a variant of the cost of production principle, and can introduce healthy competition for objective specific rehabilitation of the waste but productive land.