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Efficiency of Market Behaviour of NTFPs for Households under JFMP: A Case Study in West Bengal

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  • Sarker, Debnarayan
  • Das, Nimai

Abstract

This paper attempts to examine the extent of marketing efficiency and economic efficiency of NTFPs in different markets based on the empirical study on some households under JFMP and on some market middlemen related to the business of NTFPs under Bankura district in the state of West Bengal. This study suggests that there exists the highest price discrimination for the collectors’ households of NTFPs by the agents of LAMPS, who appropriate the highest percentage of collectors’ price per unit (in Rs.) of products (kendu leaves and sal seeds) the collectors are obliged to offer for sale at the LAMPS’ selected centres other than local market places and at a price selected by the latter without the practice of bargaining. The market study shows that village wholesaler serves as the most important marketing agent of non-timber collectors’ households and pay the highest price to its collectors. As regards the price variation is concerned, uniformity of prices is observed in almost all markets for sal-leaves for the same period. Sal-leaves also attains the highest level of marketing efficiency and the lowest level of profit margin for market middlemen influencing more efficient and more competitive price structure of sal-leaves in the area we surveyed. Moreover, the test of market integration for sal-leaves indicates a long run relationship between two markets (Bishnupur and Pirorgari markets) and causality runs interactively from Bishnupur market to Pirorgari market.

Suggested Citation

  • Sarker, Debnarayan & Das, Nimai, 2006. "Efficiency of Market Behaviour of NTFPs for Households under JFMP: A Case Study in West Bengal," MPRA Paper 14779, University Library of Munich, Germany, revised 2007.
  • Handle: RePEc:pra:mprapa:14779
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    References listed on IDEAS

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    1. T. Randall Fortenbery & Hector O. Zapata, 1993. "An examination of cointegration relations between futures and local grain markets," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 13(8), pages 921-932, December.
    2. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    3. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
    4. Sarker, Debnarayan & Das, Nimai, 2004. "Historical Relevance of Joint Forest Management Proggramme and the Key Elements of its Sustainability: An Evidence from Western Midnapore Division in West Bengal," MPRA Paper 14781, University Library of Munich, Germany.
    5. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    6. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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    Citations

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    Cited by:

    1. Das, Nimai & Sarker, Debnarayan, 2008. "Benefit Relationship between Owner and User of Common Pool Resource: Evidence from Joint Forest Management Programme in West Bengal," MPRA Paper 15327, University Library of Munich, Germany.
    2. Das, Nimai, 2009. "Understanding of Social Capital in Gender-based Participatory JFM Programme: An Evidence from West Bengal," MPRA Paper 15304, University Library of Munich, Germany.
    3. Das, Nimai & Sarker, Debnarayan, 2008. "Analysis of Risk Behavior of Households: Evidence from Gender Sensitive JFM Programme in West Bengal," MPRA Paper 15220, University Library of Munich, Germany.
    4. Das, Nimai, 2009. "Can Joint Forest Management Programme Sustain Rural Life: A Livelihood Analysis from Community-based Forest Management Groups," MPRA Paper 15305, University Library of Munich, Germany.
    5. Mahapatra, Ajay Kumar & Shackleton, Charlie M., 2011. "Has deregulation of non-timber forest product controls and marketing in Orissa state (India) affected local patterns of use and marketing," Forest Policy and Economics, Elsevier, vol. 13(8), pages 622-629, October.
    6. Das, Nimai & Sarker, Debnarayan, 2008. "Moral Hazard Problem for Rural Labour Households under JFMP: A Study from Forest Dependent Groups in West Bengal," MPRA Paper 15230, University Library of Munich, Germany.
    7. Das, Nimai & Sarker, Debnarayan, 2008. "Study on Forest Dependent Households under a Household Model Framework," MPRA Paper 15328, University Library of Munich, Germany.
    8. Das, Nimai & Sarker, Debnarayan, 2008. "Distributional Aspect of Forest Income: A Study on JFM and non-JFM Forest Dependent Households," MPRA Paper 15330, University Library of Munich, Germany.

    More about this item

    Keywords

    Marketing efficiency and economic efficiency; Non-timber forest products (NTFPs); Joint forest management programme (JFMP); Bengal forest resource;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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