Eucalyptus Marketing in Punjab - a Comparative Inter-market Analysis

Success of farm-forestry programme are crucially linked to their economic profitability. Eucalyptus is a prominent component of farm-tree plantations in Punjab as in many other parts of India. These plantations in the beginning stages raised hopes for fast and substantial returns. However, now when the plantations are maturing, the expectations of high returns are not being realised. Doubts are being raised about the economic compatibility of Eucalyptus as a farm component in this agriculturally progressive State of India. This paper evaluates Eucalyptus marketing system in Abohar, Ludhiana and Patiala markets of Punjab. Lack of efficient marketing system is belived to be major factor in depressing returns from Eucalyptus plantations. The results of the study confirm the theoretical relationship of decline in producer's share in consumer's rupee, with the increase in length of marketing chain. Intermediaries' margins are found to be significantly high. The study suggests the need for reviving marketing system and also keeping policy promises to maintain farmers' enthusiasm for the success of any innovative Farm Forestry Plantation Programme.