Role of Forestry Sector in Madhya Pradesh Economy

Forest is one of the most important natural and renewable resources for the very survival of human beings, especially those who are living in and around the forest. Forests are known as green gold as forest not only assures ecological security but also in providing livelihood support to a sizable tribal and other forest dependent population. However, one of the major reasons for its depletion is unsustainable exploitation often by the same very people whose survival depends on the forests. Several attempts have been made in different countries to save this invaluable resource. Madhya Pradesh is the second largest state in the country with an area of 30.82 million ha constituting 9.38 per cent of the geographical area of the country. Also, the state has the largest forest area in the country with the recorded forest area 94,689.38 sq km constituting 30.72 per cent of the geographical area of the state. Madhya Pradesh has an excess forest cover of 33036 ha. Net present value of the same would be Rs. 165172 crore at Rs. 5.80 lakh per ha of capital stock. This capital stock would yield an annual return of Rs. 8285 crore at the minimum interest rate of 5 per cent.