Valuation and Management of Forest Resources: An Analysis

Abstract

Although Government has initiated various measures to conserve its forest resources, these have also affected harvesting of forest produce and in turn state revenue from forestry. However, a significant increase in afforested area in the state is certainly a welcome development. The afforestation carried out under employment guarantee scheme (EGS) in the state of Maharashtra is as high as 60-70 per cent of the total afforested area of the state. The study reveals that in order to maintain ecological balance and conserve its forest resources, the Government of Maharashtra has initiated various measures and programmes. The measures adopted in more recent times have resulted in an increase in afforested area as well increase in plantations under various crops. Nonetheless, these measures have also some adverse effects, especially in terms of harvesting of produce and thereby net returns from state forestry. The decline in revenue receipts from forests coupled with sharp increase in expenditure on forestry related activities, especially on administration and forest protection, have certainly affected the forest economy of the state. The ban on felling of trees and increase in afforested area in the state could certainly be considered as welcome developments. But, a more appropriate strategy could have been to adopt such policy measures that not only prevent felling of trees in certain parts of the state but also help in intensifying afforestation in some other identified parts of the state and, at the same time, allowing harvesting/deforestation of high yielding varieties of major and minor forest produce in certain specific pockets of the state. The balance in the some could not only have helped the state to increase its revenue receipts from state forestry but also in respect of achieving its goal of maintaining ecological balance in the state.