The case of discovering price of Eucalyptus pulpwood in a South Indian State

Sandeep Tambe and Sharadindu Pandey

International Journal of Indian Culture and Business Management, 2019, vol. 18, issue 4, 420-441

Abstract: The case is about the dilemma faced by the top management of Telangana State Forest Development Corporation Ltd. (TSFDCL), a Telangana province of India-owned public sector unit in pricing their public good. The Provincial Industries Department had allotted the Eucalyptus pulpwood to a paper company, to revive this sick unit and asked TSFDCL to fix the price Hence, the main purpose of this case is to discover the base price of the public good, i.e., Eucalyptus pulpwood, by triangulating various approaches of pricing. Auction is a widely used pricing method especially in the natural resource sector. The selling environment of high volume public goods is fraught with risk as buyers are few and they tend to make cartels or settlements to affect the auction prices. In addition, elements of political economy also influence the transparency of pricing some of the high profile cases assessed by the national auditor.

Keywords: natural resource pricing; statutory pricing; auction; state forest development corporation. (search for similar items in EconPapers)
Date: 2019
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