Non-Timber Forest Products (NTFPs) for Food and Livelihood Security: An Economic Study of Tribal Economy in Western Ghats of Karnataka, India

Thesis submitted in partial fulfilment of the requirements for the joint academic degree of International Master of Science in Rural Development from Ghent University (Belgium), Agrocampus Rennes (France), Humboldt University of Berlin (Germany) and University of Cordoba (Spain) in collaboration with Wageningen University (The Netherlands), Slovak University of Agriculture in Nitra (Slovakia) and the University of Pisa (Italy).Crop Production/Industries, Farm Management,

Non-Timber Forest Products (NTFPs) for Food and Livelihood Security: An Economic Study of Tribal Economy in Western Ghats of Karnataka, India

The present study attempts to assess the contribution of NTFPs to income and employment by ensuring food and livelihood security for the tribal economy in the Kodagu district located in Western Ghats of Karnataka, India. This study estimates the contribution to income and employment and the costs and returns of NTFPs collections. Furthermore a Tobit model is estimated determining the factors influencing share of NTFP in income. For carrying out this study, simple random sampling was used and data was collected from 91 tribal households. The result of the study indicates that most employment (55%) was generated by the wage sector followed by NTFPs collection (26%) and other sectors (19%). Also, wage earnings generated the highest average annual income per households (INR.14244) followed by NTFP (INR 5505) and other sectors accounting 10% to the total tribal income. Comparing income and employment from various sectors indicates that: (i) NTFPs collection is performed by all households irrespective of income contribution but (ii) income contribution from wage earning is highest. The higher contribution of wage income to the total income of tribals is due the employment absorption in the coffee sector during different seasons of the year. This fetches a higher wage rate (INR.120/day) compared to the opportunity cost of labour in NTFP (INR.80/day). However, the employment and income levels from coffee and NTFP are uncertain in nature. Thus, income levels from combination of NTFP and other activities generate sustainable income for food and livelihood security. Results of the Tobit model indicate a positive significant relationship between total hours of collection (b= 0.901) with income share of the NTFPs. A negative relationship with income variables such as farm income (b= -0.001) and wage income (b= -0.003) was found to be statistically significant at the 99 % confidence level. While services and allied activities (b= -0.001) were negative significant at 95 % confidence level. These variables influence the share of NTFPs in income. The main problems faced by the tribals include government restrictions regarding NTFP collection, limited employment possibilities, inappropriate benefit distribution and misuse of funds and finally a lack of processing activity at the local level. In order to overcome these problems, an efficient distribution of existing benefits through proper institutional mechanisms is needed. In addition, processing activities have to be encouraged through trainings and skill development. This can add in realizing sustainable income and employment throughout the year

Valuation of Externalities in Water, Forests and Environment for Sustainable Development

Conceptual development in the theory of externalities have opened up several policy options for their internalization including payment towards environmental services. Hence as externalities are social costs, accountability is crucial in increasing environmental awareness and for collective action through education and extension more so in developing countries. Here a modest attempt has been made to estimate externalities in water, forests and environment with field data from peninsular India to reflect on the economic perception of externalities by farmers and users of environment for the consideration of policy makers to devise institutions for payment towards environmental services. The methodology largely used here in estimation / valuation of externalities is by considering ‘with – without’ situations (including ‘before – after’ in some cases) akin to ‘project valuation’. Studies cover empirical estimation of externalities inter alia due to over extraction of groundwater , sand mining, watershed development, conservation of forests, sacred groves, cultivation of organic coffee, use of medicinal plants as alternate medicines and the annual values presented are in 2008 prices. The negative externality due to sand mining 24 € per acre, that due to distillery effluent pollution is 34 € per acre. The positive externality due to watershed program is around 51 € per acre, and that due to rehabilitation of irrigation tanks is 26 € per acre. The positive externality due to cultivation of shade coffee is 9 € per acre and that due to forest conservation 27 € per acre. The positive externality due to sacred grove conservation was 12 € per family. The impact of forest conservation on Non timber forest products was 88 € / per tribal household. The positive externality due to use of medicinal plants as alternate medicine is equal to 35 € per patient suffering from osteo-arthritis and 19 € per patient suffering from peptic-ulcer. While these estimates are not sacro sanct as the methodologies for valuation of externalities are subject to further review and improvement, they however serve as initial indicators of spillovers. And they signal possibilities for consideration of policy makers for devising alternate institutions for potential payment towards environmental services

VALUATION OF EXTERNALITIES IN WATER, FORESTS AND ENVIRONMENT FOR SUSTAINABLE DEVELOPMENT

Conceptual development in the theory of externalities have opened up several policy options for their internalization including payment towards environmental services. Hence as externalities are social costs, accountability is crucial in increasing environmental awareness and for collective action through education and extension more so in developing countries. Here a modest attempt has been made to estimate externalities in water, forests and environment with field data from peninsular India to reflect on the economic perception of externalities by farmers and users of environment for the consideration of policy makers to devise institutions for payment towards environmental services. The methodology largely used here in estimation / valuation of externalities is by considering ‘with – without’ situations (including ‘before – after’ in some cases) akin to ‘project valuation’. Studies cover empirical estimation of externalities inter alia due to over extraction of groundwater , sand mining, watershed development, conservation of forests, sacred groves, cultivation of organic coffee, use of medicinal plants as alternate medicines and the annual values presented are in 2008 prices. The negative externality due to sand mining 24 € per acre, that due to distillery effluent pollution is 34 € per acre. The positive externality due to watershed program is around 51 € per acre, and that due to rehabilitation of irrigation tanks is 26 € per acre. The positive externality due to cultivation of shade coffee is 9 € per acre and that due to forest conservation 27 € per acre. The positive externality due to sacred grove conservation was 12 € per family. The impact of forest conservation on Non timber forest products was 88 € / per tribal household. The positive externality due to use of medicinal plants as alternate medicine is equal to 35 € per patient suffering from osteo-arthritis and 19 € per patient suffering from peptic-ulcer. While these estimates are not sacro sanct as the methodologies for valuation of externalities are subject to further review and improvement, they however serve as initial indicators of spillovers. And they signal possibilities for consideration of policy makers for devising alternate institutions for potential payment towards environmental services

VALUATION OF EXTERNALITIES IN WATER, FORESTS AND ENVIRONMENT FOR SUSTAINABLE DEVELOPMENT

Consumer/Household Economics, Demand and Price Analysis, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Externalities, Environmental services, Sustainable development,