Valuation Study

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Value of Non-Timber Forest Products

Attributes

Medium: Land

Country: Sri Lanka

Analytical Framework(s): Economic Analysis

Unit(s): other

Study Date: 1996

Publication Date: 1996

Major Result(s)

Resource/Environmental Good LKR
(1996)
Net income earned by households from forest extracts in villages in Kandy districts1 3,225.00
Net income earned by households from forest extracts in villages in Matara districts2 2,001.10
Net income earned by households from forest extracts in villages in Ratnapura districts3 1,116.70

Study Note: In 1995 the contribution of the forestry sector to the Sri Lanka economy was nearly 1.3 percent of the Gross National Product (Central Bank of Sri Lanka, 1995). Its contribution to the national economy declined from 1.7 percent in 1988 to 1.4 percent in 1994 as can be seen in Table 1. The marginal decline of the forestry sector reflected diminishing timber resources which has resulted from over exploitation of forests during this period due to population growth and economic development. The total employment in forestry and wood-based industries in 1995 were around 331,000 persons. Of the total 67 percent biomass energy produced in the country, nearly 66 percent was mainly from fuel wood, a main product of natural forests in the dry and wet zones of the country. This means fuel wood provided nearly 44 percent of the total energy produced in the country.

Study Details

Reference: Cyril Bogahawatte. 1996. Forestry Policy, Non-timber Forest Products and the Rural Economy in the Wet Zone Forests in Sri Lanka. EEPSEA Research Report, No. 1996-RR.

Summary: This study discusses the role of the NTFP to the rural economy of the wet zone conservation forests in Sri Lanka. It shows that the economic value of the NTFP to the villagers in the vicinity of the forests, measured by income from sales of the products or by the opportunity cost of the time spent in forest product collection, is relatively small when compared to gross income received from farm and off-farm activities. Furthermore, there is no significant difference in the income derived by villagers living near or far from the forests. In spite of this seemingly low importance of NTFP to the rural economy, majority of the respondents have signified willingness to participate in efforts to manage and protect the forest resources. This could be due in part to the important role of the forest and NTFP in some religious practices of the people; the forest is also recognized as important for its aesthetic and recreational valueto the community.

Site Characteristics: . The total area of natural forests in the country decreased from 1,777,995 ha in 1983 to 1,582,756 ha in 1992. The highest declines were reported in Gampaha (69.7%), Kilinochi (68.1%), Badulla (53.5%) and Hambantota (43.6%) districts. However some districts conversely shows an increase of forest cover. In Ratnapura, the change of forest cover was 3.5 percent between 1983-92. In Kandy district, the decline of forest cover over the same period was 2,284 ha (-1.2%). In Matara the increase of forest cover was nearly 3,101 ha (or 1.4%). The forest cover in the country has declined from 44 percent of the total land area in 1956 (2.87 million ha) to 23.9 percent of the land area (1.33 million ha) in 1992 with an annual rate of deforestation of nearly 40,000 ha (Table 2). The average annual planting during this period was around 2,000 ha. The forest area per capita has declined from 1.3 ha in 1900 to less than 0.1 ha in 1992.

Comments: The study pointed out the people expect some benefits from their participation in the form of employment to forest-management undertakings, and continuous access to some NTFP that are important to their livelihood. They also expect to receive rural infrastructure support in the form of road developments and assistance in building their temples. In addition, they do expect government counterparts from the forestry department to do their share in the implementation of the Forestry Sector Master Plan (FSMP) - such as giving technical assistance and material support to the people.

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