status bamboo resources dev 20 8 13 final

8/13/2019 Status Bamboo Resources Dev 20 8 13 Final

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Status of Bamboo Resources Development in

Pakistan

Dr. Muhammad Sharif

Social Sciences DivisionPakistan Agricultural Research CouncilIslamabad - August, 2013


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Table of Contents1. Introduction 1

2. Status of Bamboo Resources2.1 Introduction of bamboo2.2 Area under bamboo plantation2.3 Natural vs planted bamboo or ownership of forest

2.4 Bamboo growing stocks2.5 Bamboo biomass stocks2.6 Diversity of bamboo tree species2.7 Bamboo wood removal and value of wood removal

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3. Economics of Bamboo Plantation

3.1 Justification for economic viability of bamboo plantation3.2 Methodology3.3 Cost of Production of Bamboo Plantation3.4 Economic Analysis

3.5 Financial Analysis3.6 Conclusions

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4. Constraints to Bamboo Resources Development

4.1 Image problem of bamboo4.2 Limited past research and development activity on bamboo4.3 Knowledge gaps on bamboo4.4 Weakness of institutional environment and Networking4.5 Lack of credit and financing4.6 Lack of market research and value addition in bamboo4.7 Global competition

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5. Way Forward for Bamboo Resources Development

5.1 Improving image of bamboo5.2 More Focus on research and development activity on bamboo5.3 Knowledge on bamboo5.4 Strengthen the institutional linkages5.5 Provision of credit5.6 Capacity building of bamboo stakeholders5.7 Market research and value addition in bamboo

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Annex-I Basic data for working out cost of plantation of bamboo

Annex-II Cost of Production for bamboo plantation in first year

Annex-III Cost of Production for bamboo plantation during the 2ndand 3rd years

Annex-IV Cost of production for bamboo plantation during 4thand 5thyear

Annex-V Cost of production for ratoon bamboo production for three years

Map-I Bamboo growing areas in Pakistan

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Status of Bamboo Resources Development in

Pakistan

1. Introduction

Bamboo is a highly utilized natural resource in many parts of the world (Andargatchew, 2008).Bamboo plants grow in tropical and temperate regions of the world, being more abundant in theformer, particularly in Southeast Asia (IDRC, 1980). According to Oharnberger (1999), morethan 1500 bamboo species are found in the world, covering more than 14 million ha of land. Outof these species, Pakistan possesses about 29 species on over 20000 hectare of land during 2005(GFRA, 2005). In Asia, bamboo is ecologically, socially and commercially an important plant(Austin et al 1983). It is equally obvious that there exists a potential to significantly increase theproduction of bamboo and improve its productivity in present and alternative uses. In otherwords, bamboo has 'value'. It is seen as a relatively scarce resource (due to low productivity ofnatural stands) with many uses in manufacturing, as a food and in making paper (MacCormac1985).

Bamboo has a rich history, and a promising future as apart of the solution to 21st centurychallenges. A giant, fast-growing, wood like grass and one of earths oldest and most preciousplant materials, it has benefited human societies since times before recorded history. Today, ithelps more than two billion people meet their basic needs, and as a widespread, renewable,productive, versatile, low- or no-cost, easily accessed, environment-enhancing resourceit hasgreat potential to improve life even more in the years ahead, especially in the villages andcountryside of the developing world (Sastry, 2003a; Sastry, 2003b). As global population climbsand resources are stretched, bamboo can continue to serve the poor, in particular, across a hugespectrum of uses, ranging from shelter and piping to tools and musical instruments. And withdemand exceeding the sustainable yield of the worlds forests, it offers many ways throughtraditional as well as modern industrial applications of bridging a growing gap (Sastry, 1999,2000).

Bamboo is a versatile multipurpose forest produce which plays a vital role in the worldsindustrial and domestics economics. It has been used, especially by the natural people, for theirshelter and for every day utilities. It is described as the word of the poor, green gold of the

forest and friend of the people. In many parts of the world it is used as a food, fodder, theprimary construction material and for making great variety of useful objects from kitchen tools,to appear to dinnerware (Nagpure et. al., 2008). The introduced species of bamboo in Pakistanare more versatile and can be cultivated in areas where the native bamboo does not survive.Farmers/growers had expressed great interest in growing these bamboo species on their land, and

harmonized methods are being introduced to ensure that bamboo outputs are successfullyrealized.

Following this introduction, this status paper is organized into five sections. The information onthe status of bamboo resources in the country is given in section two. The information on theeconomic viability of bamboo plantation is presented in section three. Section four is devoted tothe constraints to bamboo resource development in country. Way forward for bamboo resourcesdevelopment in Pakistan in section five completes this status paper.


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2. Status of Bamboo Resources

The information on introduction of bamboo in Pakistan, limited bamboo diversity, area underbamboo plantation, bamboo growing stocks, bamboo bio-mass stocks, bamboo wood removalsand value of bamboo wood removal is mainly derived from Global Forest Resources Assessment(2005). There are no other published data available on the current status of bamboo resources inthe country. Therefore, the status of bamboo resources in Pakistan is reported upto year 2005 and

the information on these resources has been summarized and presented in table-1.

2.1 Introduction of bamboo

Different species of bamboo were introduced in the eighties in Pakistan from which some arewell adapted to climatic conditions of Punjab (GFRA, 2005). 21 species were imported fromBangladesh and four from Thailand and China. Bamboo plantations were introduced on goodagricultural lands in Sargodha, Jhang, Khoshab and Mandi Baha-ud-Din districts of Punjabprovince and Nawabshah and Badin districts of Sindh province. The bamboo growing areas havebeen shown on map-I.

2.2 Area under bamboo plantation

The area under bamboo plantation was 20000 hectare upto 2005 and the information is presentedin Table-1, (GFRA, 2005). Bamboo plantations have been raised on private agricultural lands inPakistans Punjab under agro-forestry system. Plantation area increases or decreases with thedemand in the market especially in the export markets and is also influenced by the timber pricesin the market (GFRA 2005). Most of these plantations are on 0.5 acres of lands. In Chunian subdivision of Kasur district, small farmers have also successfully established small bamboo grovesof 4-10 acres area. Bamboo plantation area increases or decreases with the market demand in thedomestic as well as in the Middle East markets. Dandrocalamus stictus, Bambusa tulda andDandrocalamus hamiltonii are the major species grown on private farmlands (GFRA, 2005).

2.3 Natural vs planted bamboo or ownership of forest

There is no area under natural bamboo forest in the country and 100 percent bamboo resourcesare planted on private farms in Punjab and Sindh provinces of the Pakistan. Bamboo growers inPunjab province either raise pure stand of bamboo or manage bamboo plantations withagricultural crops (GFRA, 2005). It has further stated that most of the farmers use rhizomes forplanting bamboos as well as shoot cuttings are also used for bamboo cultivation where therecommended planting method for bamboo plantation is at 2x2 meter spacing.

2.4 Bamboo growing stocks

GFRA, (2005) has argued that an average growing stock of bamboo grown on farmlands isestimated about 8 tons/per hectare where more than 66 percent of the growing stock isconsidered commercial growing stock having clum diameter of more than 5 cm and more than80 percent of the growing stock consist of three major species i.e Dandrocalamus stictus,Bambusa tulda and and ocalamus hamiltonii (Table-1).


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Map-I: Bamboo growing areas in Pakistan

2.5 Bamboo biomass stocks

GFRA, (2005) has stated that total living bamboo biomass was 130990 tons dry weight during2005 in Pakistan which 113000 tons was above ground biomass a bamboo and 17990 tons dryweight below ground biomass of bamboo in Pakistan (Table-1).

2.6 Diversity of bamboo tree species

Bamboos are of limited diversity in Pakistan. The number of native bamboo species is 3 in thecountry where 13 bamboo species are introduced in the country and there is only one criticallyendangered bamboo species (GFAR, 2005). The names of 16 bamboo species are as (i)dendrocalamus strictus (ii) dendrocalamus giganteus (iii) dendrocalamus hamiltonii (iv)dendrocalamus longispathus (v) melocanna bambusides (vi) arundinaria falcata (vii) bambusaarundinacea (viii) bambusa tulda (ix) bambusa polymorpha (x) bambusa vulgaris (xi) bambusanutans (xii) phyllostachys aurea. (xiii) phyllostachys pubescens (xiv) phyllostachys aureosulcata


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(xv) bambusa bambos (xvi) multiplex (GFAR, 2005). They have further stated that 3 naturallygrown species of bamboo are known as arundinaria falcate, bambusa bambos, anddendrocalamus strictus. Arundinaria falcate is grown in the NW Himalyas at 1,200-2,000 m andoccurred in the undergrowth in forests of oak, firs and mixed trees , usually on northern slopes orin ravines in the country and is used for making baskets, mats and pipes. The Bambusa bambosis found rare in the Ravi river eastward and is used for construction. Dendrocalamus strictus isfound in Punjab, and in mixed vegetation on Margahlla hills surrounding Islamabad and used for

construction and variety of purposes. Arundinaria falcate is also used for making baskets, matsand pipes. Multiplex is used for hedge. Dendrocalamus hamiltonii is also used for constructionand ladder manufacturing and scaffoldings. The bamboo resources are shrinking in Pakistanovertime. (GFRA 2005).

2.7 Bamboo wood removal and value of wood removal

In Pakistan, almost all of the bamboo resources are on farmlands and bamboo is harvested byclear cutting the bamboo field and stumps are left for next crop and generally the farmers preferthe sale method in which all the marketing function are performed by the buyers (GFRA, 2005).It has further argued that 136000 ton bamboo wood was removed/harvested during 2005 inPakistan. GFRA (2005) has further stated that in Pakistan, a thirty feet bamboo stem having 14-

15 kg weight is sold at Rs 200 in the local market during 2005 and with a value of 32.29 millionUSD when One U.S $=60 Rupees (Table-1).

Table-1: Bamboo Resources in Pakistan during 2005.

S.No. Resources Quantity

1. Natural bamboo forest Nil

1. Area under bamboo plantation (hacters) on private farms 20000

2. Bamboo growing stock (total weight in tons/ha)(i) commercial(ii) common(iii) total

136000165000206000

3. Bamboo bio-mass stock (total living bio-mass ton-dry weights) 1309904. Diversity of bamboo tree species

(i) native bamboo species(ii) introduced bamboo species(iii) critically in dangered bamboo species

032501

5. Bamboo wood removal (tons) 136000

6. Value of bamboo wood removal (Million USD) 32.39Source: Authors have summari zed the information fr om Global Forest Resources Assessment (2005).Source: Calculation are based on information/ perceptions of bamboo growers during the field visit in 2012.

3. Economics of Bamboo Plantation

3.1 Justification for economic viability of bamboo plantation

Plants add to the prosperity of a nation and seem to be the custodian of human life in thisuniverse (Iqbal, 1992). Forest cover of the world as well as of Pakistan is decreasing day by dayand between the years 1990 to 2000, the annual deforestation rate in Pakistan was 1.5 % (FAO,2005a).The partial or complete destruction has been brought about by a variety of reasons but inmany cases mans desire to produce more foodstuff and cash crop is the primary cause. The


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paramount goal has always been the production of food to fulfill the ever increasing populationof Pakistan (Azhar et. al. 2011).

In spite of various efforts undertaken periodically, not much progress has been made in thisdirection in the last four decades and the existing tree population is far below the minimumrequirement of the nation (Quraishi, 2000). A land more or less permanently under trees mayhelp to reduce or prevent soil erosion and play a part in rehabilitation of degraded and marginal

land (FAO, 2005b) and in mine restoration (Brierley et al., 2005). To meet the increasingdemand of wood, we need to increase the wood production (Azhar et. al. 2011). They furtherargued that it is therefore, high time to look critically at the profitability of existing bambooplantation in bamboo growing areas of the country. Since the land resources is limited and it isnot possible to increase it because of the increasing food requirement of the country, therefore,emphasis must be on adopting new methods of management for enhancing bamboo productivityat low cost of production.

The existing management of forest casts serious doubt as for as economic efficiency of bambooplantation is concerned (Azhar et. al., 2011). They have further stated that the question becomesof prime importance if the profitability of limited resources like land, labour and water used in

forestry does not compare with that when used in alternate land uses i.e. farming etc. Intangibleadvantages of forests alone do not justify the existing production forests at present level ofmanagement and their benefits in soil conservation and ecological balancing exceed the tangiblebenefits (Khan and Mahmood, 2003). Economic competition of tree raising and crop husbandryhas therefore made it inevitable to conduct a study on the economic viability of bambooplantation. Therefore, the understanding the economics of bamboo plantation not only help alarge section of stakeholders at local, regional and national levels but also prove beneficial topolicy makers, funding agency and non-governmental organizations (Pande, 2012). Theobjective of this section was to estimate the cost and return of bamboo plantation in order to seeits economic feasibility and levels of profitability in the bamboo growing areas of Punjab,Pakistan.

3.2 Methodology

The economic analysis of bamboo plantation is based on the review of earlier work andsecondary published data as well as last year two days visit to bamboo growing areas (districtsKasur and Mandi Baha-ud-Din ) of Punjab, Pakistan where the perceptions of bamboo growerson the economics of bamboo cultivation. A team of social and biological scientists visited thebamboo growing area of districts Kasur and Mandi Baha-ud-Din in March, 2012. The first handinformation on the bamboo production was obtained from the key informants of bamboo growersin the study area. Economic evaluation techniques have been used to estimate the value of landand other resources used in the development of economy, and the information generated hashelped in understanding how funds, land, natural products and other resources are allocated and

used in the society (Pande et. al., 2012).

The economic analysis of bamboo plantation was carried out using benefit-cost ratio, net presentworth and internal rate of return. Benefit cost ratio, net present worth and internal rate of returntechniques were used for data analysis as suggested by Marglin (1963) and Gittinger (1984).Benefit cost ratio is the ratio of the discounted value of all cash inflows to the discounted valueof cash outflows during the life of the project. The decision criteria used for profitability If,B/C> 1, investment is worthwhile, B/C< 1, investment is not worthwhile, B/C = 1, indifference


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case (Shah et. al. 2012). The discount rate/compound rate which reflects the price of theinvestment funds is used to arrive at costs and returns to a common point of time. These costs aresubtracted from returns to get the net present value of the project. The decision criteria are tocheck the profitability, If NPV>0, investment is worthwhile, NPVi, investment is worthwhile, r


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ratoon crop for every three years interval is presented in Table-6. The average sale price of greenbamboo pole was Rs.123/-. On an average number of harvestable plants per acre was 30 percentduring initial four years and 40 percent 5th years onwards. A net income without land rent ofRs.275000/- per acre could be realized after 5thyear in case of fresh bamboo cultivation. In caseof three year ratooning, a net income without land rent of Rs.300000/- per acre could be realizedonward 5thyears i.e. 6-8 years (Table-2).

Table-2: Economic Analysis of Bamboo PlantationValue in each Year

Items 1 2 3 4 5 3 years

(Ratooning)

Cultivation for bamboo 1600 1600 1600 0 0 0

Leveling 1500 0 0 0 0 0

layout and planting (man days) 1200 0 0 0 0 0

Nursery Cost 4200 0 0 0 0 0

Transportation 1200 0 0 0 0 0

Replacement @ 10% 540 540 0 0 0

Irrigations Canal 0 0 0 0 0 0Irrigations Twell 1000 5000 5000 5000 5000 15000

Labor charges for irrigation @4Hrs/Acre 300 2100 2100 2100 2100 6300

Urea (bags) 0 3200 3200 3200 3200 9600

DAP (bags) 0 4200 4200 4200 4200 12600

Labor charges for fertilizer 0 120 120 120 120 360

Pruning etc 0 300 300 0 0 0

Weeding/hoeing 900 900 900 900 900 2700

interest @ 18% on working

capital 1980 2974 2974 2794 2794 8597Land rent 0* 30000 30000 30000 30000 90000

water Charges 0 300 300 300 300 900

interest @ 18% on fixed capital 0 5454 5454 5454 5454 16362

Total Cost 13880 55248 55248 54068 54068 163619

Total Cost for reachingharveting maturity 232510

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Sale value 275000 300000

Net Income with rent 42490 136381

Net Income Per year 10622 45460

Net Income without rent 162490 226381

Net income per year (without

rent) 40622 75460

Assumption: Farmers grow crop initially for one to two years. For the present study it is assumed that farmer will getbenefits equal to one year normal crop form first one to two years. Since, income from intercropping is insignificant the same hasnot been considered while calculating economics.Source: Calculation are based on information/ perceptions of bamboo growers during the field visit in 2012.


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3.5 Financial Analysis

The financial indicators for bamboo plantation in Punjab are presented in Table-3. The discountrate used in this research for calculating benefit cost ratio, net present worth and internal rate ofreturn was 18 percent. The benefit cost ratio has been found 1.24 which revealed that bambooplantation was profitable. These results followed the findings of Azhar et al., (2011), who studiedeconomic evaluation of daphar irrigation plantation in Punjab, Pakistan, and also with the

findings of Shrivastava (1988), who studied economics of agro forestry in Indo-Gangeticalluvium of Uttar Pardesh and found it profitable. Benefit-cost ratio varies from year to year assuggested by Sharma (1995), who studied the financial profitability and optimum rotation ofAustralian pine (Casurina equistifolia) in Orisa and concluded that compact plantation is the onlyway to fulfill the timber requirements of the rural community.

Table-3: Financial analysis of bamboo plantation in Punjab, Pakistan

S.No. Parameters Punjab, Pakistan (2012)

1. Net Present Value (Rs/acre/ year) 54605

2. Benefit Cost Ratio (%) 1.24

3. Internal Rate of Return (%) 27

4. Pay Back Period Years 5Source: Calculation are based on information/ perceptions of bamboo growers during the field visit in 2012.

The net present worth of bamboo plantation was Rs.54605/- indicating that the bambooplantation in Punjab was in profit. These findings were in lines with those of Pande et.al (2012),Siddiqui and Khan (1991) that profitability in case of compact plantation on farm lands was high.Khan and Beater (1990) suggested that it was more economical to grow a single crop undertypical farm constraints and requirements which substantiated the findings of our study.

The value of the Internal Rate of Return (IRR) of the bamboo plantation was 27%. This valuewas highly reasonable especially for long rotation and allocation of poor land for the plantation.

According to the selection criteria of the IRR growing of tree crops in the form of compactplantation in the irrigated areas was highly profitable (Azhar et. al 2011). The economic analysisof bamboo plantation carried out by Uriate and Pinol (1994) in Philippines had shown that a onehectare bamboo farm has internal rate of return of 31 percent.

3.6 Conclusions

The economic analysis of bamboo plantation is a review based on earlier work and secondarypublished data as well as last year two days visit to bamboo growing areas (districts Kasur andMandi Baha-ud-Din ) of Punjab, Pakistan where the perceptions of bamboo growers on thebamboo feasibility. The review analysis has revealed that NPW arrived at Rs.54605/-, and IRRwas 27 percent and BCR was 1.24. The BCR ratio indicates that bamboo plantation is profitableto individual stakeholders/producers in study area in addition to the benefits accrued to the

society in terms of value nutrient saved through soil conservation and incremental soil carbonbuild-up. Reasons for low net financial benefits were attributed to high tree mortality, and highinitial cost. Adopting improved bamboo production techniques and managerial approaches,profitability of bamboo plantation can be enhanced to a large extent. The study has suggestedthat the high cost of establishment of bamboo plantation may be met through financial incentivesto the bamboo producer/village community on a collective basis and such policy instruments canbe converged with land based scheme of federal and provincial governments. The large scalebamboo plantation could be undertaken with assistance from such financial scheme and the


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remaining cost of plantation could be met from the farmers/village society towardsenvironmental services provided by the locational bamboo eco-system

4. Constraints to Bamboo Resources Development

Inspite of economic viability of bamboo production, the bamboo resources are not yet properlydeveloped in the country. Therefore, there is need to understand the factors/constraints hinderingthe bamboo resource development in the country. The image problem of bamboo, limited pastresearch and development activities particularly tissue culture research, knowledge gap onbamboo, weakness of the institutional environment and networking, lack of credit and financing,global competition and lack of market research & value addition in bamboo are major constraintsto bamboo resources development in the country.

4.1 Image problem of bamboo

The bamboo has a reputation of being a traditional and primitive material and people are notaware that high quality applications are possible with bamboo (Kefri, 2006). In Pakistan, thebamboo has not received adequate publicity/promotional efforts to give it the image it rightly

deserves, namely that of being a fast growing, multipurpose and eco-friendly plant with the greatpotential of reducing pressure on forest.

4.2 Limited past research and development activities on bamboo

There is no bamboo research institute in the country and therefore there is no on going bambooresearch program exist. In the past, the research and development activities on bamboo wereignored. There is no tissue culture research program on bamboo in any Research andDevelopment Organizations of the country. Efforts are required for deputing some prominentexperts who have dedicated their carrier to bamboo research for initiating research anddevelopment activity on bamboo. Moreover, basic bamboo nurseries have not been properly

established.

4.3 Knowledge gaps on bamboo

Hence, there is no program initiated to investigate the potential of bamboo and to developstrategies for its plantation and utilization in the country. Any research and developmentactivities on bamboo, if undertaken, have not been documented in any publication. There are nopublish documents containing the data on the area, production, prices, and marketing of bambooin the country. There is only one document entitled "Global Forest Resources Assessment 2005,Pakistan Country Report on Bamboo Resources carried by Forestry Department, Food andAgriculture Organization of the United Nations. This document contains data on species, bio-

mass, stocks, wood removal, and value of wood removal of bamboo plantation in Pakistan uptothe year 2005. Two unpublished broachers (English and urdu versions) on bomboo cultivationtechnology in Pakistan were drafted by National Agricultural Research Centre in year 2012.There facts revealed that knowledge gap on bamboo plantations and development exists.


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4.4 Weakness of institutional environment and Networking

There is no proper inter-departmental cooperation to formulate and implement a comprehensivebamboo promotion strategy. The bamboo stakeholders are not organizing for an effective systemof networking. As a result, interaction among bamboo stakeholders and lobbying in the politicalarena are very deficient.

4.5 Lack of credit and financing

Limited capital endowments and excess to institutional credit have prevented cottage industryfrom up-scaling their bamboo related activity. Commercial banks are not providing funds for up-scaling activity at affordable rates. The limited capital and poor access to credit have preventedbamboo sub-sector from developing its potential in Pakistan.

4.6 Lack of market research and value addition in bamboo

There is not reliable information on the local market and information for developing bamboomarketing strategies. There is no information on the production consumption system of the

bamboo sub-sector in Pakistan. The information are not available on the market segments wherePakistan have competitive advantage both within the local and export market. The informationon structure, conduct and performance of bamboo market is also missing. Above all, there is nostudy has been carried out on bamboo value chain analysis in Pakistan so far.

4.7 Global competition

Bamboo industries in Asia (China and India) are rapidly developing. In order to survive andthrive in the global arena local bamboo sub-sector will have to become increasingly competitive.The availability and quality of local bamboo raw material will have to increase substantially andbamboo stakeholder will have to up-grade their skills, production processes, designs and

marketing techniques for competing in the global world.

5. Way Forward for Bamboo Resources Development in Pakistan

5.1 Improving image of bamboo

Efforts are required for adequate publicity and promotion activities for awareness the bamboostakeholders regarding its fast growing nature, its economic viability, multipurpose uses and ecofriendly plant. A booklet entitled guidelines for establishment and managing plantation ofbamboo in Pakistan need to be published and circulated among the bamboo stakeholders in thecountry.

5.2 More Focus on research and development activity on bamboo

Efforts are urgently required to initiate a good bamboo research program in general and tissueculture research program in particular in order to enhance the bamboo nursery plants in thecountry.


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5.3 Knowledge on bamboo

There is need to initiate a program to investigate the potential of bamboo and to develop strategyfor its plantation and utilization in Pakistan. In future, the research and development activities onbamboo should be documented. There is need to initiate a program for publish documentscontaining the data on the area, production, prices, and marketing of bamboo in the country.

Two unpublished broachers (English and urdu versions) on bomboo cultivation technology inPakistan were drafted by National Agricultural Research Centre in year 2012 and thesedocument should be published.

5.4 Strengthen the institutional linkages

There is a need of proper inter-departmental cooperation to formulate and implement acomprehensive bamboo promotion strategy. The bamboo stakeholders need to be organized foran effective system of networking. Efforts are required for lobbying of bamboo promotion in thepolitical arena.

5.5 Provision of credit

For the promotion of cottage industry from up-scaling the bamboo related activity, commercialbanks should provide loans at affordable rates. Credit should also be provided for bambooprocessing activity for developing its potential in Pakistan.

5.6 Capacity building of bamboo stakeholders

Capacity building programs for extension workers for transferring the acquired skills and know-how to small bamboo growers and other chain stakeholders are required in order to survive andthrive in the global arena, local bamboo sub-sector to become increasingly competitive. These

programs will up-grade their skills, production processes, designs and marketing techniques forcompeting in the global world.

5.7 Market research and value addition in bamboo

Urgent efforts are required to survey the market and update the information on the production toconsumption system of bamboo sub-sector in Pakistan. The research question in this study wouldbe how efficient and equitable bamboo value chains are with respect to competitiveness,inclusiveness, scalability and sustainability in Pakistan. Value chains for bamboo are differentfrom food grains and other crops. Agricultural processors and retailers are scaling up very fastwhile farmers continue to be small and fragmented. The question of economic viability of small

farmers arises. Under such scenario, whether small farmers (84%) will be competitivedomestically and globally or will leave farming. For this it is important to study how efficientand equitable bamboo value chains are with respect to competitiveness, inclusiveness, scalabilityand sustainability in Pakistan. The main purpose of this research will to assess and design valuechain of bamboo in bamboo growing areas of Pakistan specifying in: (i) mapping bamboo valuechains (ii) identifying current types of operational service providers, their resource use status,chain supporters and identifying their capabilities; (iii) describing economic analysis, marketanalysis, governance structure and of the bamboo products at a different level, (iv) identifying


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constraints and opportunity and thereby determining bamboo value chain upgrading strategiesand intervention and (v) analyzing policy environment and recommending way forwards forbamboo sub-sector commercialization.

The study will provide the information with a view to market segments where Pakistan coulddevelop a greater competitive advantage both within the local and export markets. The structureof the Pakistan market become apparent when analysis is done on the value chain range ofactivity involved in sourcing in bamboo raw materials (production processes), markets(transforming the material into finished product and selling them to the endusers) and policiesrelevant to bamboo in the country. The study will cover topics ranging from social anddemographic factors of bamboo growers, policy and legal issues, stakeholders analysis,constraints, employments and income opportunities from bamboo. The study will also providemeticulous products and market information regarding the many uses of bamboo in the country.This will be pioneer study for understanding the development, evolution and trends of bamboosub-sectors in the country.


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Annexure-IBasic data for working out cost of plantation of bamboo.

Description Kasur Mandi Baha-ud-Din Punjab, Pakistan

Spacing (ff) 17x17 17x17 17x17

No. of plants / acre 158 162 160Mortality replacement (%) 10 10 10

Manure required (kg/plant/year) 10 10 10

Fertilizer required (kg/plant/year) 0.02 0.02 0.02Cost of fertilizer (Rs/ kg) 40 40 40

No. of irrigations / year 16 14 15

Irrigation cost / (Rs)/No. 500 500 500Seedling price (Rs/ seedling) 32 28 30

Labour wages (Rs / manday) 300 300 300No. of harvestable plants per ha (%).

(i) Initial four years 30 30 30

(ii) Fifth year onwards 40 40 40Sale price per bamboo pole (Rs/pole) 126 120 123

Annexure-II

Cost of Production for bamboo plantation in first year1

styear

Items Unit Number Rate Value

Additional Cultivation for bamboo No. 2 800 1600

Leveling No. 1 1500 1500

layout and planting (man days) 4 300 1200

Nursery Cost No. 120 35 4200

Transportation No. 120 10 1200

Additional irrigations Tube well No. 1 1000 1000

Additional irrigations Canal No. 1 0 0

Labor charges for irrigation @ 4Hrs/Acre No. 2 150 300

Weeding/hoeing No. 3 300 900

interest @ 18% on working capital 11000 0.18 1980

Total Cost 13880* Assumption: Farmers grow crop initially for one to two years. For the present study it is assumed that farmer willget benefits equal to one year normal crop form first one to two years.Source: Source: Shah et. al., 2012 where calculation are based on information/ perceptions of bamboo growers during the fieldvisit in 2012.


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Annexure-IIICost of Production for bamboo plantation during the 2ndand 3rd years

Items Unit Number Rate Value

Replacement @ 10% No. 12 45 540

Cultivation No. 2 800 1600

Irrigations Canal No. 9 0 0

Irrigations Twell No. 5 1000 5000

Urea (bags) No. 2 1600 3200DAP (bags) No. 1 4200 4200

Labor charges for irrigation No. 14 150 2100

Labor charges for fertilizer No. 3 40 120

Prunning etc No. 1 300 300


interest @ 18% on working capital 16520 0.18 2973.6

Land rent No. 1 30000 30000

water Charges No. 1 300 300

interest @ 18% on fixed capital 30300 0.18 5454

Cost for one year 56147.6

Total cost for 2 years 112295.2Source: Source: Shah et. al., 2012 where calculation are based on information/ perceptions of bamboo growers during the fieldvisit in 2012.

Annexure-IVCost of production for bamboo plantation during 4thand 5thyearItems Units Number Rate Value

Cultivation No. 0 800 0



Urea (bags) No. 2 1600 3200

DAP (bags) No. 1 4200 4200

Labor charges for irrigation No. 14 150 2100




Land rent No. 1 30000 30000

water charges No. 1 300 300



Total Cost of 2 years 108135.2

Total cost of production for 5 years 232510.4

Source: Source: Shah et. al., 2012 where calculation are based on information/ perceptions of bamboo growers during the fieldvisit in 2012.


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Annexure-VCost of production for ratoon bamboo production for three years

Items Units Number Rate Value

Cultivation No. 0.5 800 400



Urea (bags) No. 2 1600 3200

DAP (bags) No. 1 4200 4200Labor charges for irrigation No. 14 150 2100




Land rent No. 1 30000 30000

water charges No. 1 300 300



Total cost for three years 163618.8Source: Source: Shah et. al., 2012 where calculation are based on information/ perceptions of bamboo growers during the field

visit in 2012.

status bamboo resources dev 20 8 13 final

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