Contribution of Forestry to Poverty Alleviation - APFNet

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Timber market values vary according to the quality of timber and ranges from NR 400-1,200 per cu ft at the farm gate price. If we consider the average of two values, the total income from timber is NR 5.47 billion, which contributes about NR 210 per capita income per year. The annual royalty collected from CF is also significant to the national income, which is more than NR 55 million (Table VII.5). Table VII.5. Total timber volume (cu ft) collected or sold from GMF, CF, and PF Forest Type 1. Government managed forests 2. Community forests Timber collected and placed at government depot (cu ft) Timber sold or internally used Volume (cu ft) % 220 Royalty (NR) VAT (NR) 2,014,042 1,297,641 19 - - 4,631,995 1,821,064 27 55,747,441 67,678,797 - 372,271** 5 3. Private forests 232,494* 3,347,391 49 - 50,051,815 Total 6,838,367 100 55,747,441 117,730,612 Source: Department of Forest, 2010, Note: * Number of private trees cut, ** Internally used The rules related to the collection of royalty and VAT vary with the forest regimes. For instance, from GMF, 90% of the total royalty plus 13% VAT collected are deposited in the government treasury and the rest (10%) is sent to the District Development Committee (DDC). From CF, 15% of auctioned amount for tree species (Shorea robusta and Acacia catechu), if sold outside the CFUG, is deposited to government treasury, and similarly, a 13% VAT is paid for all sold wood outside the CFUG. From private forests, the 13% VAT is deposited to government treasury if sold to outsiders. The contractor who bids in the auction pays NR 5 per cu ft for the Forest Development Fund (FDF) to be deposited at the DFO. Any individual or company seeking to buy timber should take part in the auction of the DFO. All timber harvested from GMFs is auctioned. The Timber Corporation of Nepal (TCN) is also allowed to harvest a fixed quantity of timber from each district and is generally half of yearly production. In Nepal, timber is marketed through three agencies: (i) DFO, (ii) TCN, and (iii) CFUGs. The DFO harvests timber from GMFs as per management plan. In the terai, half of the total quantity to be harvested is given to the TCN for sale. However, both organizations (DFO and TCN) have to auction all the timber harvested in separate lots. Sawmill owners and the furniture industry take part in the government auction of timber and the highest bidder gets the lot. On the payment of the required amount plus 13% VAT, the DFO issues permits for the transportation of logs to different destinations. The bidder deposits an extra NR 5 per cu ft, as discussed earlier in the Forest Development Fund at DFO. CFUGs also auction the wood that are not consumed or utilized within the CFUGs. Plantations and processing The government undertook large-scale block plantations in various locations in the terai region in Nepal (such as Kerkha in Jhapa district, Sagarnath in Sarlahi district, Tamagadi in Bara district, and Kohalpur in Kailali district). The GoN also initiated the establishment of some processing and manufacturing companies. The Virkuti Paper Mills is run with government support in Chitwan district. Similarly, NWFPs are processed in the Herbal Production and Processing Company Ltd. (HPCCL) in Kathmandu. The contributions of these plantations and manufacturer companies are not assessed in detail. The Department of Forest Research and Survey (DFRS) did some assessments on the contribution of private sawmills and companies and the employment generated through these companies in three districts (Makawanpur, Kaski and Rupandehi). There are 194 sawmills in the three districts that generate about NR 177 million of cash earnings in one year. These sawmills provide employment to at least 114 people per district. The laborers working in these sawmills are poor people who migrated from hills and mountains.
Payments for Environmental Services and Carbon Payments The recent discussions on the role of forest in carbon sequestration are gaining interest in Nepal, but sustainability is a question as the contributions are from very few cases. It is believed that carbon forestry has the potential to generate funds for local people. A survey conducted in the mid- and highhills of the Himalayan region indicated that the mean carbon pool size of a community-managed forest (excluding litter, herbs, and shrubs) is 504.31 tC02 per ha (Karky et. al. 2009). This also includes soil organic carbon up to one meter depth. Of the total carbon, the mean annual increment rate of carbon capture was found to be 7.04 per ha (Karky et. al. 2009). An ICIMOD report (2010) shows that 16 CFUGs in Kayarkhola watershed of Chitwan District received US$ 22,000 for their contribution to reducing carbon emissions (REPUBLICA 2011). A study commissioned by the Ministry of Forest and Soil Conservation estimated the forest sector’s contribution to the GDP using both direct and indirect use values. The result revealed about 9.5% contribution from the direct use values. The direct use values are consumptive goods such as timber, fuelwood, grass/fodder/bedding materials, NWFPs, sand, and boulders. Non-use values, such as recreation, ecotourism, soil conservation and carbon sequestration, provide an estimated contribution to the national GDP of 27% (Acharya et. al. 2009). Case Studies Selection of Case Study Sites Three case study sites were selected for this study based on some criteria of poverty such as remoteness, poverty level, scarcity of food/land and water, low educational attainment, and health conditions. This report deals with the impacts of four initiatives in community forestry, leasehold forestry, conservation area forestry, and commercial forestry to poverty reduction from three districts, one each from terai, middle hills and high hills. Community forestry and commercial forestry (furniture enterprise) initiatives were selected for site 1, which is found in the Sewarkhola sub-watershed in Dang District. There are many furniture and sawmill industries in Dang District. Community forestry and leasehold forestry initiatives were selected for site 2 (within Sukekhola sub-watershed, Pyuthan District). Lastly, conservation area forest management (indigenous forest management) initiative was selected for site 3, which is located within the Lete sub-watershed in Mustang District. Table VII.6. Characteristics of case study sites Case study sites Basanta Hariyali Forest Users Group Location Sewarkhola sub-watershed, Dang (Inner Terai) Forestry initiative Community Forestry and commercial forestry (Furniture making) Jaspur community forest and Barahasthan leasehold forest Sukekhola sub-watershed, Pyuthan (Middle Hills) Community and Leasehold forestry Name of FUG Basanta Hariyali Jaspur CF and Barahasthan LF Lete conservation area forest Lete sub-watershed, Mustang (High Hills) Conservation area forestry (indigenous forest management) Lete conservation area forest Area coverage (ha) 276 280 150 Number of households Start/Current 368/430 127/133 70/77 Sample Households Male/Female Ethnic or caste composition Tharu, Brahmin, Chhetri and Dalit (BK, Priyar and Sarki) 16/8 15/5 12/4 Magar, Brahmin, Chhetri and Dalit (BK, Priyar and Sarki) Thakali, Gurung, Magar , Dalit (BK, Priyar and Sarki) HPI 36.8 221 40 48.1 Food sufficiency 9-12 months 6-9 months Less than 6 months Literacy rate (%) 76.8 60 52.1 Forest types Broad leaf sub-tropical Sal Subtropical evergreen to Conifer and mixed
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Making Forestry Work for the Poor A
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© FAO ISBN The designations employ
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Contents Foreword .................
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Figures Table VII.6. Characteristic
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Acronyms and Abbreviations AAC Annu
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MDG Millennium Development Goal MGN
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Acknowledgements This publication o
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Introduction Overview Peter Walpole
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Table 1: Status of Poverty Reductio
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Although poverty alleviation is inc
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Past efforts to address poverty thr
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Lack of Support for NWFP Developmen
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to absorb the large number of peopl
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Smallholder tree farming Engaging i
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cultures is a major challenge. Cult
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2. Capacity building for individual
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Poffenberger, M. and Smith-Hanssen,
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Life in an unforgiving environment
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Forest Policy and Its Objectives Ab
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to meet the expenses during communi
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Chirata is an important medicinal p
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From 2003-04 until 2004-05, revenue
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Payment for Environmental Services
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The auction yard for pipla at Gelep
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Recommendations Pipla collection is
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whose incomes are at the lower end.
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Figure I.3. Net income per distilla
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domestic demand of traditional medi
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auction chirata. However, due to In
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Product improvement • Improvement
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Policy and Planning Division (PPD).
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• reforestation and protection of
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Sector Development Plan 2001-2010,
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Forest Policy The RGC endeavors to
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eserved forests and ensure their ap
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It is generally accepted that the e
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contributions to rural livelihoods,
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Case Study 1: Community forest in P
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she can buy a total of two to three
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Members of the Trapang Kbal Khmoach
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Capacity building for CF members Ed
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After the integration of the Khmer
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Livelihood situation after concessi
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for institutional reforms. Based on
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Meta, B. C. (2010). Community-based
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Table III.1. Summary of past NFI re
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During the Twelfth Five-Year Plan p
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nationwide to contract the collecti
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alleviating rural poverty. Collecti
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areas. All these create pressure on
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Table III.5. List of economic fores
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stations, and others. In addition,
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farmers to increase to over US$ 310
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year and his national special care
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enough capital to invest, leading t
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Introduction IV Assessment of the C
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value of forests reflected in the S
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Poverty Alleviation and Forestry in
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Reduction Strategy papers. Furtherm
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Figure IV.1. Coincidence of forests
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Fodder from the forest provided abo
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landless and marginal landholding h
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70% was exported. It is estimated t
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Table IV.5. Registered projects und
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Case Studies Case Study 1: A Tradit
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our land.” All agree that forests
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The forest around the village was d
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Figure IV.2. Value chain analysis W
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A popular tourist attraction in Ker
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Innovative mechanism for resource g
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Outlook for Forestry and Poverty Al
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Wood demand. Trees from non-forest
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their livelihoods. Resolution of po
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Forest Survey of India. (1999). Sta
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Saxena. (1999). NTFP policy and the
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a resolution to control seasonal fi
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(MoF 2009). A study by the TREES Pr
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is caused by (i) lack of recognitio
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that the development of the Kaliman
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plantations on community lands. How
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as the subsistence, livelihood and
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As of 2010, MoF was able to issue 2
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for HTI projects. The finding under
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do not follow these agreements or a
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Satyawati’s (1991) field research
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Morgan’s investigation (2011) of
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intercropping in at least 0.25-0.5
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Challenges and ways forward In the
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Challenges The target buyers of the
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end or scale down their operations.
Page 186 and 187: Increasing the Benefits from Large-
Page 188 and 189: Kayoi, M. et. al. (2006). Poverty a
Page 190 and 191: World Bank. (2006a). Sustaining eco
Page 192 and 193: in neighboring countries that incre
Page 194 and 195: Poverty Situation Despite the signi
Page 196 and 197: Subsistence Use of Forests and Allo
Page 198 and 199: allocated for communities to manage
Page 200 and 201: growth, increased per capita income
Page 202 and 203: of 311 villages (38%) preparing the
Page 204 and 205: Figure VI.1. Important household in
Page 206 and 207: Recently, Lao PDR was selected as o
Page 208 and 209: in this case study are based on the
Page 210 and 211: The contribution of NWFPs to the wh
Page 212 and 213: 4% A brief about Ban Xom Figure VI.
Page 214 and 215: Table VI.6. Villagers’ opinion on
Page 216 and 217: The purpose of the SEMFOP 1 was to
Page 218 and 219: In addition, rice production was re
Page 220 and 221: mostly to reducing rural poverty. I
Page 222 and 223: • Enhancingexistingmechanismsands
Page 224 and 225: 18, 2009. National Agriculture and
Page 226 and 227: (Table VII.2). Government-managed f
Page 228 and 229: to 2006. On the other hand, the hum
Page 230 and 231: The community based forest manageme
Page 232 and 233: for Agricultural Development (IFAD)
Page 234 and 235: grass and fodder production in both
Page 238 and 239: LF area forest Area coverage (ha) N
Page 240 and 241: as tree cover, biodiversity, NWFP,
Page 242 and 243: Operational management The operatio
Page 244 and 245: With regard to timber use, Jaspur C
Page 246 and 247: the primary forest products that co
Page 248 and 249: It is not surprising to note that t
Page 250 and 251: there is a greater chance of progra
Page 252 and 253: from poor and marginalized families
Page 254 and 255: Chand, P. B. and Ghimire, K. (2007)
Page 256 and 257: RECOFTC & FAO. (2009). Is there fut
Page 258 and 259: Shearman et al. (2008) estimated th
Page 260 and 261: markets and basic services like hea
Page 262 and 263: Figure VIII.2. Land and poverty ind
Page 264 and 265: those in the rural areas, to mobili
Page 266 and 267: Past and Current Contribution of Fo
Page 268 and 269: Village industries Village industri
Page 270 and 271: Government continues to be the prim
Page 272 and 273: Carbon payments PNG does not have a
Page 274 and 275: annually and harvest and process an
Page 276 and 277: The project generally improved the
Page 278 and 279: and no follow-up was done to sustai
Page 280 and 281: Forestry being a renewable resource
Page 282 and 283: Melnick, D., McNeely,J., Navaro, Y.
Page 284 and 285: Table IX.1. Philippine forest cover
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Livelihood and poverty context in t
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and basic services like health and
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services and quality of human devel
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CBFM is still recognized as a major
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In many parts of the country, colle
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Small-scale Commercial Forestry Non
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Tree plantations from IFMA and smal
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CARAGA region in the Philippines is
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eduction in the log supply contract
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viable spheres of production for sm
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3. Ensure sustainability of raw mat
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Garcia, B. Jr. (2005, December 1).
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Table X.1. Forest area by region, 1
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With the country’s remarkable gai
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Table X.3. Government agencies invo
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Table X.5. Registration of the poor
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poor. What reshaping meant in pract
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Community title The solutions to pr
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for commercial uses up to 2009 were
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demarcated the boundary. At present
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was not degraded forest but that it
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to the livelihoods of rural people.
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• No tree cutting is allowed in t
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“I have never regretted all the f
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costs. The service providers were i
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1. safeguarding and restoring the n
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is, and their right to participate.
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Linking Reforestation, Poverty Alle
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Office of National Economic and Soc
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mountain people (Ha 2009). Presentl
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However, while overall poverty leve
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one of the best forms of management
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26.2% of the total area of forest l
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Box XI.2. Factors constraining FLA
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average to reach US$ 700-800 millio
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River delta and Mekong River delta
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However, Tran (2009) pointed out th
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The Contribution of Traditional Com
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Fuel wood collected from forests is
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The Contribution of Viet Nam Forest
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are provided both input and output
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the PES fund per year, compared to
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Viet Nam’s forestry development s
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Decree 99/2010/ND-CP on the policy
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Sustainable poverty reduction perio
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