CHAPTER N

CONTRIBUTION OF FORBSTS TO ECONOMIC DEVELOPMENT OF AN1

F o r e s t r y h a s a l w a y s occup ied a p i v o t a l p l a c e i n t h e 5

economy of AN1 and can be considered i t s 'backbone'. Historically.

man h a s u t i l i s e d t h e f o r e s t s f o r v a r i o u s p u r p o s e s , namely, f o r

habi ta t ion, cultivation, t imber , fuel. fodder and recreation. The

growing utilisation of fores ts h a s changed the course of t h e economic

h i s to ry of ANI. This chapter in two sections a t tempts to examine the

contribution of fores t utilisation to the economic development of ANI.

Section one provides a his tor ical perspect ive of forest u t i l i sa t ion

before and a f t e r independence, while the contribution of fores ts to t h e

t e r r i t o r y ' s economy is sketched in Section two.

4.1 FOREST UTILISATION

4.1.1 T m d s in Pre-Independence Forest Utilisation

The exis tence of AN1 was known from the ea r ly second

century and the fo res t s h e r e have preserved one of t h e r i ches t f lo ra

in t h e world. The f i r s t settlement in the is lands came about in 1789

and t h e ea r l i e s t known exploration of the fo res t s of Andaman was made

in 1839. The operations s ince 1857 had been confined to clearing

fo res t s fo r roads , buildings and cultivation, within a small r ad ius

around Port Blai r . Padauk came to be used more and mom in the local

and e x t e r n a l m a r k e t s . T h e l o c a l a d m i n i s t r a t i o n imbued wi th a

commercial motive es tabl ished t h e Andarnan Forest Department i n 1883

under ' F e r r a r ' (Roy and Mathews 1983:3). F e r r a r . through h i s

exploratory survey of North and South Andaman found that 29 per cent

of the total area was occupied by Padauk.

The v i s i t by the then 1nspectorX;eneral of Forests (IGF).

Hi11 in 1891 recommended that 81.080 ha. of forests within easy reach

of the settlement in Port Blair should be reserved and a working plan

was drawn up for a regular supply of firewood and timber to the local

people. The IGF also suggested scientific management of forests. But

owing to various constraints, the forest department could not implement

t h e s e recommendations and i t confined i t s e l f on ly to one a c t i v i t y

namely, wood harvesting, thereby turning itself into a "lumbering

department". The 1914-18 war brought a large number of less known

species to the market. and the annual quantity extracted rose from

28.300 cu.m. to 42.500 cu.m. The introduction of "clear felling"

system in 1921 and increased demand from match industry in 1926-27

accelerated the process of extraction.

The main t i m b e r fe l l ing6 of t h e depar tment were

concentrated in Middle and South Andaman and, although the maximum

annual extraction reached 56.600 cu.m., a difficult situation for the

future was gradually being created by the extraction of only valuable

species and match logs, leaving l ess valuable s inkers behind. With

the introduction of short tramlines using elephants for the haulage of

timber boggies, inter ior forest a reas were opened for exploitation and

t h e extraction was increased to 85,000 cu.m. in 1941-42. But t h e

Japanese occupation of the is lands in 1942-45 also had i t s impact on

extraction.

The Japanese, during their occupation . not only extracted

timber from the forests for construction and *fence purposes but a lso

destroyed a l l valuable records maintained by the Bri t ishers , which

resulted in lack of concrete evidence on the trends in forest utilisation

during t h e pre- independance p e r i o d . They used to send s e v e r a l

shiploads of timber to Burma a t the beginning of their occupation. On

the whole. during the Japanese period. more than 54,000 tomes of

timber were extracted in these is lands (D'Cruz and Sinka 1970:64).

After the re-occupation of these islands by the Bri t ishers .

t h e whole opera t i an of t h e f o r e s t department was thoroughly r e -

o rgan i sed . T r a c t o r s and motor boats were p u r c h a s e d , t r aml ines

repaired, elephants, power saws, diesel locos and t rucks, skyl ine

crane were also purchased. Within another year o r two, India got

freedom and AN1 joined the mainstream of India a s a Union Territory.

Thus, the process of forest utilisation in AN1 was relat ively slow in

the ea r l i e r period due to i t s remoteness and lower demand of timber.

Further , no data was avai lable to assess the contribution of forestry to

s t a te income and revenue.

1.1.2 Forest Uffllsatim in Poet-Independ- Period

The pattern and extent of utilisation of forests in AN1 have

changed to a great 'extent since independence. The composition of

forests , t h e efforts of the Government to promote afforestation and the

increased plan investment on forestry have al l changed the forest

situation in ANI. Consequently, forests have become the most distinct

economic asset of t h e Union Terr i tory and i t s Cantributim to the socio-

economic t ransformation is c r u c i a l . The p lace of f o r e s t s in t h e

economy can be understood from the detai ls of land utilisation pattern.

4.1.2.1 Trends in Land Utilization

Details of land utilisation in AN1 furnished in Table 4.1.

show that the total geographical area of AN1 was 8.292.75 sq.kms., of

which 7,468 sq.kms.. (90.05 % ) was under forests in 1970-71. Since

1979-80, i t has remained steady at 90 per cent. The net area sown

constituted 1.37 p e r cent, 3.28 per cent was classified a s un-cultivated

land excluding fallow land. 0.23 per cent was under fallow land, and

the area not avai lable for cultivation was 0.37 per cent in 1970-71.

The proportion of net sown area to total geographical area had gone up

from 1.37 p e r cent i n 1970-71 t o 1.80 p e r cent in 1986-87. The

proportion of fallow land ranged from 0.23 per cent in 1970-71 to 0.65

p e r cent in 1974-75, while the proportion of the area not avai lable for

cultivation had increased from 0.37 per cent in 1970-71 to two per cent

in 1986-87.

Table 4.11 T m Q 11 Ld I t l l l u t l o r I n A J u rd llodu I s l u * : 1870-71 - I#(+

I A t u 18 Sq. Km. I

S. lut F o t n t A t u not 0th.t un- F a l l w Net Area lo t@ report- Arm m t Total 1.0- lo. A n r a r r l l l b l r c u l t l r r t e d lud S a n i n g u n m a n t e d g t q 4 l a l

for eul- 14 e m l u t l r a t i m dlng f a l l w

tot t t m r rtN l u d me

land ut.lotr ---------------------------------------------------------------------------.------------*.---------*

1 2 3 4 5 1 7 813 to 71 1 LOIC9l

1 11170-71 lW.O(I 90.80 211.81 18.44 1 1 3 , ~ 7~ $8 i n (90.051 1 0.371 I 3.281 1 0.231 I 1.371 195.511 1 4.691 1100.001

21971-72 7 m . 0 0 92.27 00.55 48.85 1 1 8 . ~ na.a w . 4 1 s 2 w . n 190.051 1 0.391 1 0.971 1 0.591 1 1.411 I95.411 1 1.511 1100.001

3 1972-73 7465.00 42.57 257.80 49.86 113.22 7m.25 . m . 0 0 190.021 10.511 1 5.111 1O.BOI I 1 .S) 195.801 ( 4.401 1100.WI

4 1973-74 7464.00 40.m zss.15 52.10 1m.41 7 w . 1 5 s 9 . m 6m.w 190.001 10.481 IS .09) IO.(iSI 11.461 (%.#I 1 4 . # l 1100.001

5 1974-75 7464.00 119.52 313.27 54.28 125.15 8076.23 211.77 6295.00 190.001 I 1.441 1 3.781 1 0 . 6 1 1 1.521 197.591 I 2.611 1100.001

6 1975-76 7464.00 116.74 337.73 41.11 140.89 8100.47 192.53 093.00 (90.001 1 1.411 I 4.071 1 0.501 I 1.701 197.11 I 2.521 1100.001

71976-77 7464.00 144.49 421.17 27.90 137.92 8 l Y . I 1 . 1 2 6295.00 190.001 11.751 15.0EI 10.331 11.661 I88.M) 11.111 1100.0(11

8 1977-78 7464.00 144.63 428.23 31.79 134.09 8202.74 9 0 . a 8283.00 190.00I 1 1.741 1 5.161 10.50 1 I 1.631 I 1 . 8 L I I 1.091 1100.001

91978-79 7464.00 145.12 409.12 34.50 1M.24 6192.58 100.44 8295.00 190.001 I 1.751 1 4.031 1 0.421 I 1.691 11.791 1 1.211 llW.001

10 1979-80 7464.00 144.31 409.21 95.71 140.41 11192.69 100.31 8293.00 (90.001 1 1.741 I 4.921 I 0.441 1 1.191 11.791 1 1.211 1100.001

11 IWO-11 7144.00 148.61 430.65 34.42 143.20 7WI .M 381.92 0293.00 186.141 1 1.791 1 5.191 I 0.421 1 1.731 195.271 ( 4.731 l100.001

1 2 1 1 1 - 8 2 7144.00 150.58 4m.M 41.65 14S.W 7901.W 591.17 11295.00 1 . 4 1 I I 1 5.071 I 0.501 1 1.751 195.281 I 4.721 lL00.001

1311182-(0 7144.00 161.81 409.06 39.61 142.11 W.62 396.50 11295.00 (86.141 1 1.951 l 4.95) 1 0.481 1 1.721 185.221 ( 4.781 1100.00)

14 1W-84 7150.00 161.36 399.50 40.68 143.92 7 . 8 1 410.16 Mo9.00 185.881 I 2.041 1 4.111 1 0.491 1 1.731 185.051 1 4.851 1100.001

15 1W-(15 7163.00 176 03 143.46 7815.W 377.14 M99.00 186.97l 1 2:151 ?::El 1 x 1 I 1.731 I%.&) 1 4.551 1100.001

1 6 1 9 6 - W 7163.00 174.89 Sd0.59 88.50 142.99 7915.85 STI.15 M99.00 1se.n) I 2.111 I . I I I I 1.721 15.451 ( 4.551 11m.001

I7 ~sm-R 7170.94 165.7~ w.n 57.18 IU.IJ 7921.08 80.00 6m.m IW.471 1 2.001 I 4 . 1 1 I 0 . 1 1 .01 115.551 1 4.471 ll00.00)

-

Sourcn:l l l Fomt Statistlor I lWOI, F o t n t R p t t t n a t , )9dW 4 ll&r Islands. I21 kric Stat l t t lor of r u l w y w s , S t a t i s t l a l b t u u , Mmu and Hcobrr Admtnlsttatlor,

Port h i t .

lob :Fl(um l a prntbnu a n p r a h g n to total g w t a p h l u l uu.

4.1.2.2 Place of Fore~.ts

A broad inference of th i s analysis is that forests dominate

the land utilisation pattern although there has been marginal reduction

in i t s significance In recent years to 86.47 per cent in 1986-87. This

reduction was due to the policy of dereservation and release of

forest area for developmental act ivi t ies l ike extension of town, roads.

industries. settlement, cultivation, and plantation. Nevertheless.

f o r e s t s occupy a p i v o t a l pos i t ion in t h e o v e r a l l land u t i l i s a t i o n

pattern of the Union Territory and in the national context i t occupies

top ranking posi t ion among a l l S t a t e s and Union T e r r i t o r i e s . The

proportion of forest area to total geographical area ranged from 3.71

per cent in Haryana to 86.14 p e r cent in AN1 in 1980.

Forests in the Andamans a r e classified into nine types.

They are: Tidal Swamp (mangroves). Littoral Forests, Andaman Moist

Deciduous Forests. Andaman Semi-Evergreen Forests, Bamboo Brakes.

Cane Brakes. Southern Hill Top Tropical Evergreen Forests. Andaman

Tropical Evergreen Forests and Giant Evergreen Forests (Appendix 11).

But only four types namely, Andaman Moist Deciduous. Andaman Semi-

Evergreen. Andaman Tropical Evergreen and Giant Evergreen Forests a r e

of major commercial va lue in t h e i s l a n d s . One of t h e impor tan t

character is t ics of t h e forests in these is lands is that some species

occur only i n t h e North o r South Andamans. F o r ins tance , t h e

commercial t r e s 'padauk' does not occur beyond the is lands of the main

Diagram 4.2

Land Utilisation in Andaman and Nicobar Islands: 1986 - 87

Forest Area

Area Not Accounted Net Area Sown

Uncultivated Lend Aree Not A d Cu1

Andaman group and the distribution of 'gurjan' is limited upto the

Little Andaman.

In terms of t h e i r legal s ta tus . t h e f o r e s t s in AN1 a r e

classified into two categories, namely, reserved and protected. In

1989-90, 40.85 per cent (2.925 sq . kms.) of the total forest area was

classified as reserved forests, while 59.15 per cent (4,242 sq. kms.)

was categorised a s protected forests. There has been a concerted

attempt on the part of the administration to convert the protected

forests into reserved forests with a view to conserve and preserve the

forests properly. Through th i s conversion, the forest department

prevents unnecessary encroachment and the wreckless destruction of

forests which causes environmental harm.

The forest area in the Union Territory i s distributed rather

unevenly among the s i x divisions. North Andaman tops the l is t with

29.27 per cent of the total forest area followed by Nicobar (21.50 %),

South Andaman (18.41 % I , Middle Andaman (11.95 B ) , Little Andaman

(9.85%), and Baratang (9.02%). This is because the North Andaman

division was permitted to ut i l ise forests only recently and i t includes

greater geographical area too.

Division-wise p ropor t ion of t h e fo res t a r e a to t h e

respect ive geographical area is a s follows: 95.60 per cent in Little

Andaman. 90.26 per cent in North Andaman. 89.67 per cent in Baratang,

88.82 per cent in Middle Andaman, 83.76 per cent in Nicobar and 79.61

per cent in South Andaman. Thus, in a l l the divisions, more than 79

per cent of t h e geographical a rea i s under fores t s a s against the

suggested national norm of 33.33 per cent. Therefore, the national norm

is more than fulfilled in the various divisions of ANI.

Population growth has an imporiint linkage with forest

utilizatlon of ANI. The increasing population leading to increasing

demands on forests for various purposes [cultivation, grazing, timber.

and f irewood] h a s acce le ra te deforestat ion. I t a l so a f fec t s t h e

availabil i ty of forest area per capita. For the entire terr i tory the per

capita forest area was 3.80 ha..with variation from 1.43 ha. in South

Andaman to 14.18 ha . in Baratang. It was 10.10 ha . in North

Andaman. 9.79 ha. in Little Andaman, 5.06 ha. in Nicobar,

and 2.57 ha. in Middle Andaman.

The reason for the high per capita forest area in Baratang

i s that this division was bifurcated from South Andaman in 1980-81 and

t h e fores t have been u t i l i sed only over t h e l a s t 10 years . This

division also has a low population. Nevertheless. forests in South

Andaman had been heavi ly u t i l i s e d for o v e r 100 y e a r s and heavy

deforestation took place in and around Port Blair, the capital of ANI,

situated in South Andaman. So. growth of population, expansion of

developmental act ivi t ies and heavy deforestation ever since the f i r s t

settlement a r e the main reasons for low per capita forest area in South

Andaman.

4.2 IMPACT OF FOREST UTILISATION ON THB ECONOMY OF AN1

T h e foregoing a n a l y s i s i n d i c a t e s t h e t r e n d s i n t h e

utilisation of fo res t s in t h e pre- and post-independence periods. It

a lso shows the manner of dis t r ibut ion and-.utilisation of fores ts in

var ious regions of t h e Union Ter r i to ry . This section will analyse the

overr iding importance of fo res t ry through a methdology approved by

t h e Central Sta t is t ical Organisation (CSO). The economic significance of

fo res t ry can be evaluated in terms of measurable and non-measurable

( o r in tangible) benefits. The former can be assessed through the

contribution of fo res t s to t h e State Domestic Product (SDP), s t a t e

revenue, employment , industr ia l and infras t ructural development. The

l a t t e r can be d i s c e r n e d th rough t h e magni tude of eco log ica l and

environmental benefits.

4.2.1 Measurable Benefits

F o r e s t s p r o d u c e a v a r i e t y of p r o d u c t s whose monetary

v a l u e s c o n s t i t u t e a n i m p o r t a n t segment of SDP. As f o r e s t r y is a

commodity-producing sector , i t s contribution to SDP is assessed through

product method, which is t h e method approved by CSO. The following

cha r t shows the sources of total income generated from the fo res t ry

sector .

F o r e s t r y and Logging

Major F o r e s t Produce Minor F o r e s t - P l a n t a t i o n s Produce

Indus- Fuelwood - t h a t c h i n g l e a v e s - p l a n t i n g and t r i a l w o o d -bamboo r e p l a n t i n g - roundwood -cane of t r e e s - t i m b e r -dhup r e s i n s i n f o r e s t s - matchwood - f i rewood

- c h a r c o a l

4.2.2 Trends in State Domestic Product

SDP figures are available only from 1981-82, which give us

an idea about the growth of the economy and various other sectors.

The details of SDP at current and constant prices are given in Table

4.2. which show that during the seven-year period (1981-82 to 1987-

88) the SDP at current prices increased by approximately 2.1 times,

that i s from R s . 5,850.62 lakhs to Rs.12,182.37 lakhs. The SDP

increased at a compound growth rate of 13.4 per cent per annum during

the period under review and the linear growth rate was 12.5 per cent

per annum. Thus, the growth rate of the islands' economy i s much

higher than the growth rate of India (5%). State income at constant

prices increased from Rs.5.294.70 lakhs Fn 1981-82 to R s . 6.952.38

l a k h s in 1987-88. an increase of 1 .31 t imes. I t increased a t a

compound and l inear ' growth rate of five per cent per annum and the

l r o r f t m F t m t v ud Lo((ln( kc to t Nl&t I e l d e ~ 1Wl-U - lW7-88

l b . In Irkhsl

~t Cuttent Ptlcen At Conrtant ~ t l c n 11980-811 S, yeat --------------------------------------------; -------- 2 ............................... No. State Incm Col.4 lndm Inde ro f : State l n c m Col.9 Index lndrlof

l m m f t m a8 I of lmou j l m m f t m u S of l n c m Fotntty of State f rm , Fotntty of State f tol and lo# Co1.3 Incon Forestry I ud Col.8 l lcou Forntty int swfot and I L o l ~ i n ~ and

Source: Estimation of SW 119891, Andaun and Nicobat Administration, Statistical Bureau [State l f f i a r Unltl, Pott Blair.

increase in SDP a t constant p r i ces was l e s s than the growth r a t e of SDP

a t current pr ices . This shows the def la t ionary impact of rising p r i ces

on SDP.

4.2.3 Sector-wise Contribution t o S ta t e Income

T a b l e 4.3 shows t h e s e c t o r - w i s e c o n t r i b u t i o n t o s t a t e

income. In 1981-82, a t current pr ices . t h e pr imary sector . contributed

57.55 pe r cent of SDP. The secondary sector produced 17.74 p e r cent

of SDP. The remaining 24.71 p e r cent of SDP was der ived from the

t e r t i a ry sector . But in 1987-88. t h e r e l a t ive s h a r e s of these sectors

changed marginally. While the s h a r e of the pr imary sector increased

to 58.18 pe r cent , the contribution of the secondary sector declined to

14.07 p e r cent and the contribution of t h e t e r t i a ry sector increased to

27.75 p e r cent of the SDP.

At constant p r i ces , t he re was a consistent decl ine in the

s h a r e of the pr imary sector . from 58.31 pe r cent in 1981-82 to 54.23

p e r cent in 1987-88. Nevertheless. t he s h a r e of t h e t e r t i a ry sector

showed an incresing t rend, from 24.30 pe r cent to 30.57 per cent during

the per iod of review. The decl ine in the s h a r e of agr icul ture and t h e

increasing t rend in t h e t e r t i a ry sector show t h e increasing dynamism

and momentum of the economy of AN1 in recent years . This trend is in

conformity with t h e postulates of growth theor ies .

- r 2 = -

: g :

s j g j z? , & : - ; - i s ; : ~ j b z j " - L i : s ; = i & " ' = 0 ,

a 4

z i * ; i g ; = 0 0

i p i igiz i - i i ? i 0 - 0 m 8 6 8

i 2 ; = i w i , 0 -- -- - - , - - i 9 i i ' @ i - , - a : : , - , , - , ; g i - : 0 a 0

i g i - - 0 - 0 - 0 " 0 : r i s i - - 4 - , - 4 0 - 0 , E i ' I $ ; -

, , . . I ? :

i g / * , 0

8 ,

4 - 0 0

:: : i -

,A&: -

4.2.4 C O I I t f l b u t i ~ of Fores t ry to SDP

In 1981-82. f o r e s t r y gene ra ted an income of Rs.709.20

lakhs. which constituted 12.12 pe r cent of t h e total SDP a t current

p r i ces (Table 4 .2) . After that there had g e e n a s teady increase t i l l

1986, when the income from fo res t ry increased to Rs.1,513.35 lakhs.

This denoted an increase of 2.13 times. In that year . t he contribution

of fo res t ry was 13.76 p e r cent of the total SDP. But in 1987-88. the

actual contribution of fores t ry had declined to Rs.1.345.11 l akhs .

which s h a r e 11.04 pe r cent to s t a t e income. The s h a r e of fo res t ry

income to s t a t e income was highest a t 16.21 per cent in 1984-85 and

a f t e r that t he re was a continuous decline in i t s sha re . Th i s decline

may be due to decline in the utilisation of fores ts . The income from

fo res t ry had grown a t a compound gmwth r a t e of 11 .9 pe r Cent pe r

annum.

The contribution of fo res t ry to s t a t e income a t constant

p r i ce shows fluctuating t rends. In 1981-82, t h e income from forest ry

was Rs.596.55 l a k h s , which constituted 11.27 p e r cent of the total SDP.

Then for the next two yea r s , t h e fores t ry income declined but l a t e r i t

r ev ived and maintained an increasing trend t i l l 1986-87. However.

t he re was a sudden fall in fo res t ry income i n 1987-88. The s h a r e of

fo res t ry income to total SDP a t constant p r i ce had ranged from 11.27

pe r cent in 1981-82 to 5.91 p e r cent in 1987-88. The wide ranging

f l u c t u a t i o n s i n f o r e s t r y c o n t r i b u t i o n to SDP a r e mainly caused b y

fluctuations in prpduction and marketing of fores t produce a s will be

Diagram 4.3

Trend of Net State Domestic'Product (State Income) and Income from Forestry

and Logging Sectors

Income (Ru. ThOu~~lld h lnkhs) 14 I I

- - - - - - - - - - - - - - -

Years

f 1981-82 1982-83 1009-64 1984-85 1986-8R 1986-87 1987-89

detai led in t h e next chapter . On the whole, the growth r a t e of the

s t a t e a s well a s fo res t ry and logging income exhibi ted an increasing

t rend a t current pr ices , but a t constant p r i ces s t a t e income had been

increasing a t a f a s t e r r a t e than fores t ry income. At constant pr ices

t h e income from forest ry had grown at a nega?ive compound growth r a t e

of 2 .4 p e r cent p e r annum, which might have been caused by wide

fluctuation in fores t ry income and the deflationary impact of p r i ces on

the economy.

The reason for the low s h a r e of fo res t ry income to s t a t e

income is basical ly due to : ( i ) t h e l e s s r e l i ab i l i t y of data relating to

estimated production of fo res t ry and logging; (ii) t h e declining trend

in production of industr ia l wood during th i s period of analysis which

resul ted in l e s s contribution to SDP: (iii) t h e extensive cutting of

t r e e branches and t r ees for firewood. legal a s well a s illegal and

( i v ) shif t ing of the policy orientation from revenue to se rv ice , which

a l so might have accounted fo r the low s h a r e of income from fo res t ry .

However, t he declining trend in the contribution of fores t ry

to SDP in AN1 needs fur ther probe and explanation. The growth r a t e in

fo res t ry income had been less than the growth r a t e of SDP, at constant

p r i ces . While t h e index of the s t a t e income had moved from 100 to

208. t h e index of fo res t ry income had ranged from 100 to 190. Thus.

while t h e increase of the s t a t e income was 108 points, t he growth of

income from fo res t ry was only 90 points. The situation worsens when

we analyse t h e growth in terms of constant pr ice . While t h e SDP had

increased by 31 points during the period of review, the income from

fo res t ry actual ly declined by 47 points. Thus, t he growth of income

from fo res t ry had not moved along the l ines of growth of SDP.

Another point that merits a t t e n t m is that the contribution

of f o r e s t r y to s t a t e income is i n no way commensurate wi th t h e

commanding position of fo res t s in the total geographical area of the

Terr i tory. I t was a l ready seen that 86 p e r cent of t h e total a rea of

AN1 is occupied by fores ts but i t s contribution to SDP was only about

s i x p e r cent in 1987-88, a t constant pr ices . This may be contrasted

with the agr icul tural sector , which occupied only 1.80 pe r cent of t h e

t o t a l a r e a but c o n t r i b u t e d more t h a n one - th i rd of t h e t o t a l SDP.

Thus , w h i l e t h e po ten t i a l of f o r e s t s t o SDP is g r e a t , i t s a c t u a l

contribution is much less . This implies that fo res t ry a s a source of

income h a s enough scope and can be tapped for fur ther growth of the

economy. Th i s would cal l for wide ranging measures to u t i l i s e the

fo res t s more effect ively and to enhance the monetary value of fo res t s to

ANI's economy.

Though t h e declining t rend in the contribution of fo res t ry

to SDP is causing concern, especial ly when fo res t ry is an important

sec to r in ANI, t h e level of fo res t ry income is encouraging when t h e

r e l a t ive contribution of fo res t ry in o the r s t a t e s is considered. Except

in Himachal P radesh In which fo res t ry contributed 5.58 p e r Cent of t h e

s t a t e income i n 1987-88, in a l l o ther s t a t e s the contribution of fo res t ry

income had been l e s s than 1.59 p e r cent. AN1 with a contribution of

5.91 p e r cent tops the l i s t of a l l t he s ta tes . The fores t s e c t o r ' s

contribution to Ind ia ' s income h a s remained pract ical ly stationary

around a low figure of 1.15 pe r cent over a period of time. Thus, even

a t t he a l l India l eve l , the fores t ry contribution in AN1 is encouragingly

good.

4.2.5 Forestry Contribution to SDP: Regression Results

The estimated function was

A e l 8 SDP = 359.05 + 7.0193 FSDP

(2282.5) (1.8830)

*** Significant a t 1% level of probabi l i ty .

(Figures in parentheses show standard e r r o r s )

The value of R2 shows that 73 pe r cent of var ia t ion in SDP

is accounted for by variation in forest contribution. The co-efficient

r e p r e s e n t i n g f o r e s t c o n t r i b u t i o n , a s e x p e c t e d , is p o s i t i v e and

significant a t 1 per cent level of probabi l i ty . The value of the co-

efficient impl i e s that one rupee increase in forest contribution would

lead to Rs.7.0193 increase in SDP, other things remaining constant.

Th i s resul t suggests that t h e impact of fo res t ry contribution to s t a t e

income is substant ia l . Forest ry has great potential a s i t has not been

exploi ted s o f a r fully. Therefore, u t i l i sa t ion of more fo res t s h e l p s to

produce wide va r i e ty of products which lead to increase i n s t a t e

income considerably.

4.2.6 Composition of Fcirestry Contribution

The actual contribution of fores t ry to s t a t e income comes

from a va r i e ty of major and minor products generated by fores ts , t he

de ta i l s of which a r e shown i n Table 4.4. Major forest products l i k e -6

industr ia l wood, matchwood, and fuelwood provided 86.62 p e r cent of

income to fo res t ry and logging sector in 1981-82 a t current p r i ces .

Though i t occup ied a dominant p o s i t i o n u p t o 1985-86, i t s s h a r e

diminished from 78.84 p e r cent i n 1986-87 and reached 67.36 p e r cent

in 1987-88. The pic ture remained broadly t h e same a t constant p r i ces

a lso.

The s h a r e of minor fores t products l i ke bamboo, cane,

t h a t c h i n g l e a v e s , d h u p r e s i n s and c h a r c o a l was smal l and i t was

becoming negl igible . In fact, t h e s h a r e of these products had come

down from 13.38 per cent in 1981-82 to 4.34 p e r cent during 1987-88.

N e v e r t h e l e s s , t h e s h a r e of o t h e r f o r e s t p r o d u c t s had shown an

increasing t r end . that is from 0.70 pe r cent i n 1985-86 to 28.30 pe r

cent in 1986-87 current p r i ces . and 1.27 p e r cent in 1985-86 to 27.76

pe r cent i n 1987-88 constant p r i ces . The declining s h a r e of minor

fores t produce is mainly due to t h e increasing s h a r e of o the r fores t

products and t h e increasing t rend in industr ia l wood to the total income

of f o r e s t r y and logging. The r e l a t ive impact of major produce (MP),

minor produce (mp] and regeneration (R) ac t iv i t i e s can be a s sessed

through t h e regress ion resul ts .

- - - - L - -

g a a E = a g a p i e - RORC'

-

I - 2s sn - - - . - :? - - 9 % - - Z s * 4 - - 4 .-

I r - : s i - I.&:" , ; , ; , , , , - $;ijfg g z s ~ a g . g i g 3

o? o a r - rii " 8 s d s s g g s E z , g , i 3 ; N - - - - - * - 4 g ' g C 8 -

" - * - -

E i

- - - I

f - s J - S

' I i & z i i g i z : I

i 9 i i g ; -

s - zi ' 8 - g :zEz=g a E l E 3 3 % d f 8 , * - % H - n~ a i p g p 2 r c . p a g / g

8 -- -:- +- : -- -- -- -- - a - - * '- -- -- -- -- -- -- -' -- -- -- '* -- -- '- -- -- -- -- -- --

The estimated hnct ion is a s follows:

*** Significant a t 1 8 level of p robab i l i t y

(Figures in b racke t s indicate s tandard e r r o s )

The r e su l t s from the above function show tha t 96 p e r cent

of the SDP was contributed by the th ree va r i ab les included in t h e

function. All t he va r i ab les had the expected theoret ical signs. The

co -e f f i c i en t of ma jo r and minor f o r e s t p r o d u c e , t u rned out to be

significant a t one p e r cent level of p robab i l i t y . The co-efficient

donoting major forest produce indicates that increase in major fores t

produce by Rs.1 contributed Rs.4.1831 to SDP, o the r th ings being

equal . On the o the r hand, the co-efficient of minor fores t produce

indicates that one rupee increase in minor forest produce contributed to

Rs.12.817. The co-efficient representing regeneration ac t iv i t i e s turned

out t o b e non-s ignif icant p r o b a b l y because s e r i o u s r e g e n e r a t i o n

a c t i v i t i e s h a d not p i c k e d up in t h e Union T e r r i t o r y , t h u s not

contributing to output.

4.2.7 Contribution of Forestry to State Revenue

The economic development of the Andaman islands hinges

upon the resources raised internally by the administration and also the

grants received from the central Government. The s tate revenue i s

received from various sources, the l ion ' s share being contributd by

forests . In fact , the forest revenue constitutes a major proportion of

the total s t a t e ' s revenue. Revenue from the forests is mostly in the

form of non-tax revenue compris ing of commercial a s well a s

administrative revenues. Commercial revenue is obtained from the

royalty real ised by the Government through sale of forest products to

t h e t r aders through auction and negotiation, sales to the tenants on

terms effected a t given rates , sale of departmentally harvested and

processed forest products and also through leasing of forest area to

pr ivate part ies . The administrative revenues are obtained from issuing

of licence, rent of building, fine, forfeiture and cumulative fees.

The de ta i l s of forest revenue and i t s relationship with

s t a te revenue a r e given in Table 4.5. Of the total s ta te revenue of

Rs. 196.87 lakhs. forest revenue contributed 61.90 per cent in 1967-68.

The forest revenue of Rs.1.583.46 l akhs (68.408) in 1988-89 represented

an increase of 13 times over that of 1967-68. The proportion of forest

revenue to s t a te revenue ranged from 50.54 p e r cent in 1973-74 to a s

high a s 90.43 per cent in 1976-77. This means that in the l a s t 22

years the contribution of forest revenue to s t a te revenue has exceeded

50 per cent of t h e s t a t e ' s total revenue.

While the s tate revenue had increased at the compound

growth ra te of 12 per cent per annum, the forest revenue had increased

a t the ra te of 12.6 per cent pe r annum. In other words, the growth

ra te in forest revenue had marginally outsfiipped the growth ra te in

s t a te revenue. However, while the s tate revenue had increased by 12

times during the period under review, forest revenue had increased by

13 times a s noted ear l ier . All these s t a t i s t i c s indicate that forest

revenue had been growing at a considerable ra te constituting the heart

of the s t a t e ' s revenue. This implies that the contribution of forests

to resource mobilisation and the consequent economic development of the

Union Terr i tory of AN1 is substantial.

T h i s p e r c e p t i b l e growth in fo res t revenue was mainly

at t r ibutable to a number of factors operating in the economy in the past

22 years . The increase in yield of forest products has contributed to

more s a l e s revenue of t h e fo res t d e p a r t m e n t , which in tu rn h a s

contributed to more forest revenue. The royalty rates prescr ibed by

the government have also been revised upwards in response to the

economic situation in the Andamans, especially rising prices . Since

royalty r a t e s bring substantial sales revenue to the Government ( i . e . ,

e last ic i ty of revenue i s h i g h ) , even a marginal increase in the royal ty

ra tes would subtantially enhance the total forest revenue. Besides, the

regulations implemented by t h e Government in terms of the production

and sa le of timber and other minor forest products have also accounted

for h igher revenue. In addition, h ike in the pr ices of minor forest

Table 4.5: Trends in Contribution of Forestry to State Revenue: 1967-68 - 1988-89

(Rs. in lakhs)

S. Year StaLe Forest Percentage No. Revenue ~evenue? (Co1.4/Co1.3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3 4 5

Sources : (1) Forest Statistics (1980), Forest Department, Andaman and Nicobar Administration, Port Blair, p.37..

(2) Forest Statistics (1989), Forest Department, Andaman and Nicobar Islands, Port Blair, p.31

produce has also been responsible for high forest revenue to s tate

revenue.

The detai ls of other non-tax revenue, l ike receipts from

social and development services , miscellaneoh non-tax sources, grants

and interests a lso show that forest revenue has been dominating the

ent i re non-tax revenue structure. This also brings home the fact that

forest revenue is the backbone of the s t a t e ' s revenue structure.

The contribution of forests to Andaman's economy can be

bet ter assessed if the contribution of forests in other s tates of India

i s considered. While forests in AN1 on an average contribute 68 p e r

cent to the s t a t e ' s total revenue. a t the a l l India level i t works out

to just 4-5 pe r cent. For instance, during the five-year period from

1968 to 1Y73. the contribution of forest revenue to the total s t a te

revenue was 23.83 pe r cent in Himachal Pradesh, 11.86 per cent in Madhya

Pradesh, s i x pe r cent in Orissa, f ive pe r cent in Uttar Pradesh and four

p e r cent i n Assam. Thus , t h e fo res t revenue b e a r s a v e r y c l o s e

relat ionship with the s t a t e ' s total revenue. The following regression

resul t shows the impact of forest revenue on s ta te revenue of ANI.

The estimated function was a s follows:

*** Significant a t 1% level of probabi l i ty

(Figures in brackets indicate standard e r r o r s ) .

Diagram 4.4 -'

Forestry Contribution to State Revenue: 1967-68 - 1988-89

Year

state Revenue 5 orea at Revenue

The value of shows a good f i t of the function. The

value of R~ impl ies that 99 p e r cent of variation in s t a t e revenue is

caused by the forest revenue alone and only one per cent variation is

explained by other revenue sources. The co-efficient representing 3

forest revenue has a posi t ive sign and i t is in conformity with the

theoret ical expectation. The value of t h e co-efficient implies that one

rupee increase in fores t revenue contributes Rs.1.4632 to s t a t e revenue.

This resul t again vindicates t h e crucial role that fores ts play in the

budgetary process of the s t a t e and the ab i l i t y of t h e Governemnt to

finance developmental ac t iv i t i e s in the Union Ter r i to ry .

4.2.8 Composition of Forest Revenue

Table 4.6 shows that in 1969-70 out of the total fores t

revenue. a ve ry large pa r t Rs.132.536 l a k h s (90.82 %) came from major

products . Miscellaneous products contributed Rs.12.060 l akhs (8.26%)

and minor products Rs.1.348 l a k h s (0.92%). In 1988-89. 97.21 pe r cent

of t h e tota l non-tax forest revenue came from major forest products

while 1.44 p e r cent came from minor produce and another 1.35 p e r cent

was de r ived from miscellaneous items. The revenue from major fores t

p r o d u c t s h a d i n c r e a s e d from Rs. 132.536 l a k h s i n 1969-70 t o Rs .

1,539.284 l a k h s in 1988-89, denoting an increase of 11.6 times. The

p r o c e e d s from minor f o r e s t p r o d u c t s i n c r e a s e d by 1 6 t i m e s from

Rs.1.348 l a k h s in 1969-70 to Rs. 22.849 l a k h s in 1988-89, whi le t h e

revenue from miscellaneous products increased by 2.5 times from Rs.

12.060 l a k h s to 21.340 l akhs during the same per iod of review. These

Table 4.8: l n n d s I n S h r s of D i f f r r m t F o r n t Products to F o m t how: 1889-70 - 1 6 8 8 9

5. Yrrr l l l k r F l r r T1.b.r F l re Total l l lnor ll lscal Grws R d w d Net lo. IS.le1 vood and (Royalty1 rood and h j o r F o r u t lanous Permnu R~IHH*

O v r c o l l O v r s ~ l F o r u t Prodwe 1Srle) IRoyal t y l Produce I b y a l t y l

I 3 to 61 I7 t o 91 (10-111

Ewwn : (11 F o m t I t a t l # t l m 119861, F o r u t D e p r t m t , Andurn and l i c a h r Mmlnlstrat lm, Port Blair, p. 38.

I21 F o n s t S t r t l s t l oa 119891, F o r n t Depr tmnt , Ambun and W1wb.r I s l u d r , Port DIalr, p.32.

de ta i l s show the predominance of major forest products in the total

fores t revenue s t ructure of t h e Union Terr i tory.

Timber is the most important major product in terms of i t s

contribution to fores t revenue. In 1969-70. Ule sa l e of timber alone

contributed 86.63 p e r cent of the total fores t revenue, while another

3.01 pe r cent was contributed by royal ty from t imber . The contribution

of firewood was only 1.18 p e r cent from both sa l e and mya l ty . The

s h a r e of t imber sa l e s ranged from 90.19 p e r cent in 1970-71 to 64.64 p e r

cent in 1988-89. Although t imber sales contributed more than two-thirds

of the total fores t revenue, i t s sha re h a s been declining in recent

years . e spec ia l ly s ince 1985-86. While on an average the net fores t

revenue had amounted to Rs.573.8 l akhs during those 22 yea r s , t h e

average t imber sa l e s was Rs.441.5 l a k h s (76.94 %). While the forest

revenue had increased a t t h e compound growth r a t e of 1 3 per cent p e r

annum, t imber sa l e s grew a t t h e r a t e of 11.5 pe r cent p e r annum.

Thus, t he dominance of the sa l e of t imber in the fores t economy of the

Andamans is clear .

4.2.9 Overall Financial Contribution of Forests

The contribution of fores t revenue discussed above r e l a t e s

to t h e g ross contribution. But t h e Government makes a considerable

amount of plan and non-plan expendi ture on t h e development of fores ts .

If t h i s e x p e n d i t u r e is d e d u c t e d from f o r e s t r e v e n u e , t h e net

contribution of fo res t s to the general improvement of Andaman can be

a s sessed . Table 4.7 shows that i n many y e a r s t h e expendi ture on

Trblw 4.7: 1 6 i a F o m t Wnw E~pmditww: 1967-60 - 1SW-SS

F o r u t F o r r t Rwrwnw E ~ p n d i t u r w Capital Dwficit I-) S. yeat Rwrrnw .............................. outlay or lo. Won-plan Plan Total Surplur I+)

IC01.3 w.r Col.0

% w a n : (11 F o m t S t a t i s t i a s IlseOl. F o r r t Dwpartmnt. A d a m a n a d l i c o h r Administration, Port Blair. p37 .

(21 F o m t S t a t i s t i c r ( lWg), Fowrt b p r r t m n t . Adaman and l i c o h r Islands, Port Blair, p.31.

forests had exceeded the revenue, thereby indicating a position of

defici t . The deficit occurred in 11 out of 22 years . the amount of

deficit ranging from Rs.5.080 lakhs in 1969-70 to Rs.154.331 lakhs in

1975-76. While the total surplus for 11 yeazs was Rs.568.722 lakhs,

the total deficit for another 11 years worked out to Rs. 569.081 lakhs.

The net contribution in the 22 years showed a deficit of R s . 0.359

lakhs. Thus, the contribution from forestry was almost ni l mainly

owing to the excessive expenditure incurred by t h e Government on

forestry act ivi t ies . More specif ical ly , the expenditure was mostly on

soc ia l o v e r h e a d s , which tend to be h e a v y in t h e i n i t i a l s t a g e of

development.

There were a number of factors which accounted for the

high forest expenditure of the Union Terr i tory. For instance, the

administration would l ike to maintain the forest cover as usual in order

to preserve the unique ecology and environment of the islands. The

Government had to take up a number of development ac t iv i t i e s which

consumed a substantial amount of revenue. Besides, t h e Government

could not get more tax revenue because the scope for taxation was very

limited in the Union Terr i tory. In fact. the scope for commodity

t axa t ion o r income taxa t ion was almost i n s i g n i f i c a n t , l e a v i n g l e s s

leverage for t h e Government to bring more revenue.

Diagram 4 . 5 -,

Forest Revenue Expenditure: 1967-68 - 1988-89

1400

1200

1000

800

BOO

400

zoo

1967-68 1972-73 1977-78 1082-83 1987-88

Years

Revenue Erpenalture

4.2.10 Relationship Between the Growth of t h e Ecommy and Forest Revenue

I t can be genera l ly expec ted t h a t t h e growth of t h e

-i' economy, through various linkages, contributes to forest growth, which

in turn leads to an increase in forest revenue. This can be understood

from the following regression result.

The estimated function is

2 N = 7, R = 0.9291.

*** Significant a t 1% level of probability

(Figures i n brackets show standard e r rors )

This function shows that 92 per cent of variation in forest

revenue is accounted for by variation in SDP. The co-efficient value

represen t ing SDP h a s turned out to be s ign i f ican t and p o s i t i v e a s

expec ted . The value of t h e co-efficient ind ica tes tha t one rupee

increase in SDP contributes to Rs.0.14 increase in forest revenue.

4.2.11 Impact of Forest Revenue on the Growth o l t h e Hamam y

Forest revenue constitutes a major source of funds for the

development of the economy. It enables the Government to spend on

various development act ivi t ies which in turn contribute to the momentum

and dynamism of the economy. In other words, higher forest revenue

induces h ighe r expendi ture on development. which leads to fur ther

growth of t h e economy. Therefore, t he relationship between forest

revenue and the growth of t h e economy can be analysed through two

funct ions a s noted i n t h e s e c t i o n on M e t h a o l o g y . The e s t i m a t e d

functions a r e given below:

A 8.8 SDP = 1422.3 + 0.0121 e

(1180.8) (0.00191)

***Significant a t 1% level of probabi l i ty

(Figures in brackets show standard e r r o r s )

From t h e a b o v e r e s u l t s , t h e d i r e c t i n f luence of f o r e s t

revenue on SDP can be de r ived from the products of regression co-

eff ic ients of expendi ture and forest revenue. The calculated value is

5.56 (0.0121 x 459.121. This implies that t he increase of one rupee i n

fores t revenue contr ibutes Rs.5.56 to the SDP thus suggesting that t h e

fores t revenue e x e r t s a powerful, posi t ive and significant influence on

SDP and contr ibutes posi t ively to t h e development of the economy of

Andamans. T h i s r e s u l t a l s o conf i rms t h e o t h e r r e s u l t s r e p o r t e d

ea r l i e r .

4.2.12 Contribution of Forestry to Industrial Development

Since f o r e s t s occupy a p i v o t a l pos i t ion and p roduce a

number of r aw m a t e r i a l s , t h e i r con t r ibu t ion to t h e i n d u s t r i a l

development of t h e Terr i tory is immense. ;<ere a r e posi t ive forward

and backward linkages between forests and industr ia l development.

F o r e s t s p r o d u c e t h e raw m a t e r i a l s f o r i n d u s t r i e s which i n t u r n

contr ibute to employment, output and capi ta l formation in the economy.

which i n turn provide the stimulus needed for the gmwth of t h e fo res t ry

sector .

During the recent pas t , t he re has been considerable increase

in the number of industr ies in the is lands, from 15 in 1967 to 716 in

1989. an increase of 47.73 times. In 1989 t h e r e were s i x large-scale

u n i t s and 709 s m a l l - s c a l e and Cot tage i n d u s t r i e s . Most of t h e s e

indus t r i e s a r e forest-based.

Industr ies operating in AN1 can be c lass i f ied into those

c o v e r e d b y t h e Fac to ry Act and t h e ones r e g i s t e r e d wi th t h e

Directorate of Industries. The var ious wood-based indus t r i e s a re : saw

m i l l , p l y wood, penci l -making. boa t -bu i ld ing and f u r n i t u r e -

manufactur ing. Upto 1981. a b o u t 55 wood-based i n d u s t r i e s w e r e

r epor t ed but a f t e r that t he growth of small-scale industr ies was h igh .

Within f i v e y e a r s (1983 to 1987) the small-scale indus t r i e s showed more

than a two fold increase , from 69 in 1983 to 165 uni ts i n 1987 which

accounted for 26.07 p e r cent of the total small-scale indus t r i e s in ANI.

Saw m i l l s h a v e d e f i n i t e advan tages f o r economic

development. This mill i s the basic primary forest industry in AN1

and i t s products a r e used for many purposes in different ways. Saw

mills a r e l e ss capital intensive and more b p o u r intensive than other

i n d u s t r i e s . They do not r e q u i r e h igh t echn ica l s k i l l and hence

unskilled workers can be absorbed more in these industries. The

development of saw mill industr ies also encourages the development of

other forest industr ies in the i r vicinity.

Saw mills alone accounted for 36.02 per cent of the total

labour force employed in forest industry sectors and plywood industry

employed 50.55 p e r cent (Table 4.8). The contribution of other wood-

based units to employment was very low ranging from 0.90 per cent to

7 .14 p e r cent.

A number of small forest-based industr ies have also come up

in the wake of the utilisation of forests - for instance, wood-based

a r t i c les (furni ture including cane), fancy toys, decorative a r t i c les ,

tool handles , wooden boxes, handloom accessories, match s t icks.

medicines and herbs. The development of these industr ies in the

Andamans has produced a multiplier effect on the economy. The peculiar

character is t ic of these industr ies is that about 97 pe r cent of the

wood-based industr ies a r e located in Andaman d i s t r i c t r a the r than in

Nicobar.

T a b l e 4.8: F o r e s t - B a s e d I n d u s t r i e s : 1981

S. Category of F o r e s t No.of Employme~t % of E s t i m a t e d No. Based i n d u s t r i e s U n i t s G e n e r a t e d / Employ- Annual

y e a r ment Wood Requi re - ments ( i n cu.m)

1. Plywood 4 2300 50.55 90000 2. Saw m i l l 2 5 1639 36.02 67800 3. Match S p l i n t 5 325 7.14 26800 4. F u r n i t u r e 9 67 1.47 5. Cane works 9 7 8 1 .71 6. P e n c i l 2 4 1 0.90 2400 7. Boat B u i l d i n g 1 100 2.21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

T o t a l 55 4550 100.00 187000

Sources : ( 1) Industrial Potential Survey Andaman and Nicobar Islands (19751, pp.33-39.

( 2 ) Review of Management Practices in the Forests of Andaman and Nicobar Islands (1985 I . pp. 75- 77.

( 3 ) Basic Statistics of various years. Statistical Bureau. Andaman and Nicobar Islands, Port Blair.

4.2.13 Contribution of Forestry to Employment

Fores t ry i s a source of l ive l ihood a s i t p r o v i d e s

employment to skilled and unskilled workers. Forestry also provides

direct a s well a s indirect employment to people. Forestry workers a r e

employed for clearance of jungles under colonisat ion schemes ,

extraction, m a a g e m a t and protection of forests . These act ivi t ies thus

provide direct employment to the locals. In addition, the forest

department which looks af ter the various aspects of forestry also

generates employment opportunities.

As noted e a r l i e r , fo res t -based i n d u s t r i e s p r o v i d e -a

opportunities of employment to different categories of people. Table

4.9 shows that in 1960-61, 4,536 persons, constituting nearly 15 per

cent of the total labour force of the Terr i tory, were employed in

forestry. In 1970-71, the forest-based act ivi t ies generated employment

to 4,950 workers, which formed 10.87 per cent of the total workforce

in ANI. However, in 1980-81, 5,537 workers, that i s 8.83 p e r cent of

the total workforce were absorbed in forests. Though forest-based

ac t iv i t i e s have contributed considerable employment to the locals, i t s

role had come down, from 15 per cent in 1960-61 to 8.83 per cent in

1980-81. The income generated as a result of employment must have

created other posi t ive linkages l ike demand, investment, production,

savings, and so on.

4.2.14 Indirect Contribution of Forestry to Andaman's Economy

People h a v e migrated to t h e Andamans expec t ing job

opportunities and the Government has had to develop various other

inputs contributing to the human resource development of the region.

In th i s way, forests have indirect ly contributed to the development of

educational and medical faci l i t ies of the Territory. Table 4.10 shows

t h e g rowth of t h e s e f a c i l i t i e s . The to ta l number of educa t iona l

institutions in 1971-72 was 167 and th i s doubled (314) by 1987-88.

T.ble 4.81 E . p l m t in Forntry .ad Fomt k w u t r i u t 1855-56 - 1WO-El

( I n m t d w # l

Nature of 1955-58 1956-57 1957-M 1954-59 1959-60 1980-61 1370-71 1WO-81 Employmt

I Fomtry I1 Iluugewnt

andprotution 461 715 7W 670 818 750 MI 911 i i lExtraction 1 1 5 15% 2688 1511 1371 2135 2574 2678

i i l l Clnrance of Jungle (under coloniution S c M s 1 720 1490 591 1216 1140 631 -

I I Fornt Industry Sawmills and other Timber Plants 1525 1% 1437 1181 1115 1020 1535 1717 ........................................................................

Total 4181 5043 5496 1 7 8 b442 4536 4850 5537

Satroo: P a r u n d Lal 119761. Andurn leludr A Regional Swgraphr, Anthropological Surrry of India, Calcutta, p.221.

Schools had increased from 165 to 310, while college and teacher

training institution/polytecnic had gone up from 2 to 4 during the same

period. Likewise, medical institutions l i k e hospi ta ls , d ispensar ies

had increased from 62 in 1971-72 to 91 i n B87-88. The growth of

these institutions exercised a profound influence on the various aspects

of the human development apa r t from growing employment opportunities,

income generation, and so on.

The development of fores ts , h a s a l so caused development of

other infras t ructural faci l i t ies in t h e Union Terr i tory. For instance, t h e

number of vi l lages e lectr i f ied had increased five-fold, and the

e l ec t r i c i ty consumption had increased from 31.00,143 K W H in 1971-72 to

2.52.39.056 KWH in 1987-88. Fur ther . t he re had been an expansion of

roads , e spec ia l ly black-topped roads and communication network, which

in turn spa rked off socio-economic and pol i t ical changes. The fores t

roads constructed had activated social l i f e in many ways which cannot

be quant i f ied. All t hese benefits must be considered before coming to

any conclusion about the contribution of fores ts .

4.3 NON-MEASURABLE BENEFITS

Besides measurable contributions, t h e r e a r e a number of

inv i s ib l e benef i ts that accrue to the society through the development of

fores ts . Forests p rov ide protection against t he los s of c r o p s caused

by so i l erosion, i r r egu la r i ty of streamflow and s i l ta t ion. For instance.

t h e annual r a in fa l l of 300 cm. i n AN1 leaches Out a l l soluble nutr ients

Eduutiolul Institutions 110.1 M i u l Elwtrlclty Pocd Lmgth Fair Co-op. s. year -----------------*-----*------ IHmpihl (in W I (in K a . l Prim Soeir lo. Collrg Teacbr Teal Dlspn- ------------------ ------------- shop t i n

Trainin( sariw, Cmmp- Vl l lqn Blast Otbr (lo. l llo. l l lutitlr PIIC,Sub- tion Elwtri- Toppd t y p tlonlPoly- centre, f i d of k h n i c Uptan Road

Hul th bntre Ilo. I

hounr: I u l s Strtlstloa of rarimn year, S h t i s t i u l Bureau. A n d u ~ and lioob.r Adainlsttation, Port Blair

r ap id ly unless locked up in plant growth. Owing to the presence of

t r o p i c a l v e g e t a t i o n , s o i l n u t r i e n t s a r e p r e s e r v e d and a g r i c u l t u r a l

product ivi ty is a t leas t maintained a t t he all-India average. Further.

loss of water re tent ivi ty in h i l l slope s o i l s qccompanying deforestation

and los s of humus have led to perennial s t reams becoming seasonal

while the possibi l i ty of summer cultivation h a s receded. Since t h e

fallen leaves and o the r plant mater ia ls get decomposed rap id ly on the

is lands, t hey form an important manure for high agr icul tural return.

Thus, agr icul ture automatically su f fe r s unless t h e natural fores ts a r e

preserved for retaining soil moisture and stream flow.

Although i t is dif f icul t to analyse the cost and benefits of

t h e protect ive fores ts , t he benef i ts seem to far outweigh the costs.

One can apprec ia t e the benefits ar is ing from the control of floods.

cyclones and droughts by the protect ive fores ts . In fact , the forest

department of AN1 is considering a proposal to declare the uninhabited

Tarmugli group of is lands including the is lands of Tarmugli, Alexandra,

Red Skin, Hob Day, Boat. Malay. Jol ly Boys and the i s l e t s of Pluto,

Snob. Belle, Chester and Grub along with t h e associated submerged

coral r ee f s into a Marine National P a r k , sp read over 234 sq.kms. This

is pe rhaps t h e l eas t d is turbed group of is lands. They a r e located

along t h e south-west coast of South Andaman, immediately north of

Rutland Is land, which h a s t h e r i ches t coral reef area in the Andaman

group of is lands. Since the North Andaman is lands a r e considered to

be t h e l eas t d i s tu rbed , t h e r e is a proposal to dec la re these is lands a s

a 'Biosphere Reserve'

The flora and fauna of the Andamans provide opportunities

for scientific research, the value of which cannot be easily measured.

The flora of AN1 i s one of the most valuable in the whole of the sub-

continent. The forests of AN1 help in mainta9ing the coral ecosystem.

which is fortunately extraordinarily r ich in these islands. These

forests also provide nesting ground for marine turtles. Robber crafts,

the only reported occurrence of the species in India, a re found in AN1

(Nair 1986).

B e s i d e s , f o r e s t s p r o v i d e a number of rec rea t iona l and

a e s t h e t i c benef i t s through s a n c t u a r i e s , nat ional p a r k s , biological

gardens and picnic spots , which help the promotion of tourism industry

in the islands. Several hundreds and thousands of v i s i to rs , including

foreign tourists have come to these parks and sanctuaries and have

been delighted.

Above al l forests help in maintaining the unique ecology and

environment of the islands. In addition, forests help in the survival

of hunting-gathering t r ibes l ike Great Andamanese. Onge, Jarawa,

Sentinelese. Shompen and to some extent Nicobarese too. The negrito

population i s faced with the s tark problem of demographic and cultural

survival . For instance, the Great Andamanese have almost reached the

threshold of extinction.

Thus, forests help to preserve the heritage of the natives

and act a s a laboratory for scientific research in anthropological,

botanical, zoological, geological and marine biological f ields. Pandit

(19891 , t h e noted anthropo log i s t , h a s recommended permanent

reservation of some of the islands a s natural laboratories for conducting

s c i e n t i f i c s t u d i e s on economic resources l i k e f o r e s t s . f i s h e r i e s . -r

minerals and marine l i f e .

This chapter, therefore clearly brings out the measurable

and non-measurable benefits confered by forests on the economy.