1 TRANSLATION OF THE PROCEEDINGS AND ... - APFA News

formed to conduct the study. Its primary objective was to ensure that the
genuine requirement of the rural population was met. The other aspect to be
considered by the study was to devise a mechanism for curbing diversion of
subsidized timber to commercial market. The committee was mandated to
review the current mechanism for supply of timber for rural house
construction, the current level of subsidy provided on the supply of timber for
rural construction, the disadvantages and weaknesses in the current system and
to recommend measures to improve the system.
The Minister informed the Assembly that the study report submitted by the
committee was reviewed thoroughly within the Ministry. It was then submitted
to the Council of Ministers, which considered it carefully during its 56 th CCM
held on 28 December 1999 and recommended for its submission to the
Lhengye Zhungtshog. The Lhengye Zhungtshog considered the proposal
during its 194 th session held on 6 March 2000 who approved it for
implementation with effect from July 2000 after incorporation of a number of
changes. Therefore, this new policy on allotment of rural timber has been
under implementation for less than a year.
The Minister also reported on the issue of revision of royalty. Before the recent
revision, the rate applied since 1993 for conifer species was Nu.10 per tree for
up to 50 trees and Nu.30 per tree between 51-100 trees. Similarly, the royalty
rate for broadleaved species was Nu.60 per tree for upto 5 trees, Nu. 140 per
tree for 6-10 trees and Nu.180 per tree for 11-20 trees. Commercial royalty
rates were applied for number of trees beyond the above ceiling. For sawn
timber and logs, the royalty rates were Nu.0.50 per cft. and Nu.0.40 per cft.
Respectively, which was applicable upto 3,000 cft. Beyond this quantity,
commercial royalty rate was charged.
The Minister said that the new rates of royalty introduced since July 2000 are
as follows:
160