Relationship between the value of forest products and economic condition: a case study of Gandhamardan hill Odisha, India

Baijayanti Rout ()
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Baijayanti Rout: Central University of Gujarat

SN Business & Economics, 2023, vol. 3, issue 10, 1-19

Abstract: Abstract Gandhamardan Hill is located in the Western part of Odisha near the Bargarh and Balangir districts which cover a large forest area. The forest cover enables several medicinal plants, facilitating income for local habitats; Local people collect and sell in the local market and set up ayurvedic shops in the foothills. The tribals depend on the forest for the collection of minor forest products as their main source of livelihood. The life and livelihood of the local tribals are based on the Gandhamardan hill resources such as air, water for life and forest products for income and consumption. The livelihood strategies of local people have yet to drive them to economic prosperity. This article explains the facts of how minor forest product (MFP) “low value addition” was unable to create employment opportunities for tribal people in the Gandhamardan hill region ecosystems. MFPs and its impact on “value addition” have been identified as an economic problem in the Gandhamardan hill area up till now. For instance, items created following “value addition” to an MFP, like Kendu leaves, are heavily taxing the state. The state’s forest residents’ economic situation can change if the same is done to other MFPs such as lac and karanji, mahua, hard, bahada, and amla. The paper is based on primary data through a random sampling method and data collected from 604 households. The survey is conducted in Bargarh and Balangir districts on two sides of Gandhamardan Hill because the nearest villages are forest dependent. Descriptive statistics analyses the data to show the economic valuation and income of forest products. According to the study, poverty and product valuation are significantly correlated in the Gandhamardan Hill area. Forest products are lower than the local Government’s set price. The state government should work to promote a well-organised market so that consumers may obtain better terms than those offered by village lenders. It was only possible to increase the value of raw form once a food processing facility would be created. To raise the value of forest goods, in other words, and so assist in lessening the economic problems of those who depend on the forest, sustainable factories may be established.

Keywords: Forest; Value; Resources; Forest product; Odisha; Production (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s43546-023-00560-y

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