Contingent Valuation of Forest Produce in High Altitude Zone of Andhra Pradesh, India

Abstract

The present study aims at estimating compound annual growth rate of forest area in the high altitude zone of Andhra Pradesh state. The study was based on secondary data, which were collected from various published and unpublished sources. The data related to forest area was collected for the period of 1990-91 to 2020-21. For detailed analysis, the whole period was divided into two sub-periods i.e., period I (1990-91 to 2004-05), period II (2006-07 to 2020-21). The overall compound growth rate of forest area under high altitude zone of Andhra Pradesh was positive (0.54 per cent). But negative growth rate (-0.0048 per cent) was found in area for the HAT Zone in period-I (1990-91 to 2005-06) and positive growth rate (1.74 per cent) was found in area for the HAT Zone in period-II (2006-07 to 2020-21). Compound annual growth rate of forest area was found positive in overall period for the high altitude zone. Contingent Valuation (CV) and its two arms like Willingness To Pay (WTP) and Willingness To Accept (WTA) are survey methods that were supposed to measure the value of non-market goods mainly for minor forest products. Willingness To Accept usually consists of getting the information from the producers on how much they are willing to accept to avoid a negative or to accept a positive outcome. The results showed that willingness to accept was significant for all minor forest products like beedi leaves (Diospyros melanoxylon), soap nut (Sapindus trifoliatus), honey, bamboo (Bambusa vulgaris), tamarind (Tamarindus indica), firewood, vegetables, mushroom, fruits and cashew nut (Anacardium occidentale). The empirical results revealed that producers were willing to accept a premium for these forest products but lack of store availability, lack of credit facilities and middlemen exploitation were the major problems faced by the producers for which a reliable regulatory system is necessary to mitigate the quality constraint problem of forest products.