Importance of non-timber forest products in the economic valuation of dry deciduous forests of India

The production and marketing of non-timber goods (NTFP) and services gained importance in forest management as demand for these increased considerably. However, due to lack of relevant information on the level of output of non-timber products, its economic significance was seldom accounted for in the valuation of forests. Dry deciduous forests in India is one such typical case where forest valuation is yet to integrate the NTFP stock, widely used for subsistence and cash income. A detailed accounting of commercially valuable forest products harvested from dry deciduous forests of Eastern India was made to highlight the economic worth of forests and contribution of NTFPs. The net present value of revenues from NTFP was estimated to be US$ 1016 ha−1 in the coastal area and US$ 1348/ha in the inland area, which proved to be significantly higher than the returns from alternative land uses. Dry deciduous forests were estimated to have more value than had been assumed previously and compared favourably against potential timber revenue (US$ 268 ha−1). The result indicates the necessity of developing a new valuation protocol for use by forest managers while deciding conversion of forest lands for non-forestry purposes.