Sustainable commercial crops energise economy through poverty alleviation
Saturday, 21 June 2014 00:00
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Nations around the world have realised that industrialisation as an economic process has resulted in great harm towards the environment and the urgent need to create an eco-friendly environment must be addressed.
Global warming and environment transformation has caused the whole human race to change their activities towards creating a more ecological environment.
Today, sustainable commercial forestry plantations occupy a special place among sustainable economic activities. Instead of the continued destruction of national forests, the human race is now objectively engaged in commercial forestry in a sustainable manner.
Commercial forestry broadly has dual purposes; forestry plantations to supply timber requirements and forestry plantations for non-timber purposes. By engaging in commercial forestry several environmental and social advantages can be observed. Through commercial forestry, natural resources can be utilised to create a profitable venture on a long term basis. In terms of forestry plantations supplying timber requirements, the reserves have to be properly utilised and replanting should take place protecting the undergrowth.
Despite the absence of similar programs in Sri Lanka, countries worldwide have achieved successful economic returns through carbon credit auditing, which in turn provides the encouragement a country needs to propagate a green economy.
The carbon credit auditing programme corresponds to the CO2 equivalent removed or not emitted into the atmosphere. As a result, countries that have forest preservations are reaping monetary returns. Moreover, through this programme, water quality is improved, pollution reduced, enhancing the livelihoods of both mankind and animal species.
Sri Lanka does not have a long history of commercial forestry. While the use and conservation of forests is under the Government, there is no evidence to suggest that any forward thinking plan existed with regards to its economic potential.
The potential of this sector was highlighted with the advent of the private sector from whom new technology, research and development created much headway. During the period when only the Government was involved in forestry and conservation, returns on commercial forestry had a wait of over 40 years. However, with the involvement of the private sector this has been reduced to receiving returns after a 20-year period. Moreover, it has been the successful intervention of the private sector who have been spearheading the popularity of commercial forestry especially crops unrelated to timber.
At the onset, commercial forestry crops were not considered secure investment opportunities, especially as Sri Lankans were not keen due to the long period required of nearly 17 years to receive their returns. Moreover, there was no involvement from the Central Bank of Sri Lanka or any Government regulations or regulatory body governing the sector.
According to Industry experts commercial forestry plantations have reached a level of commercial success. Due to the intervention of the private sector, investments in commercial forestry have also risen tremendously. Moreover, these organisations have employed modern breeding technology which is unique to Sri Lanka, thereby creating a new market for non-timber plantations crops such as Sandalwood and Agarwood and increasing foreign exchange earning potential for the country. Experts also commend this as a noteworthy role undertaken by the private sector, for in addition to creating new employment opportunities, they are also helping alleviate poverty in villagers through Agarwood home garden crops.
Furthermore, experts opine that they feel duty bound to educate the public on the protection afforded to Walla Patta whilst looking at the production of Agarwood which is of great value in the market place.
According to international estimates, forestry specialists note that legally and illegally, the amount of Agarwood production is over 9000 metric tons and this amounts to over 40% of overall production. From this one can deduce that there is another 60% demand in the global market place. Therefore it is of utmost importance that those involved in commercial forestry in the private sector educate the public and acts in a responsible, lawful manner so that commercial forestry can be sustainable.
As a pioneer in the industry, Sadaharitha Plantations have faithfully employed sustainable methods in their commercial forestry plantations and at the same time maintained their own organisation staying true to their beliefs. Among Sadaharitha Plantations’ crops, returns from Agarwood investment can be obtained within eight years and is among their popular and well received investment plans.
A hallmark of sustainable forestry is the ability to manage forests as our most renewable resources. This factor is constantly followed by Sadaharitha Plantations who have in their own plantations and who continuously and compulsorily maintains considerable forest cover.
Discussing Sadaharitha Plantations’ commercial forestry, Chief Executive Director H.K. Rohana said, “As a company engaged in commercial forestry we are repeatedly asked the question and which many believe that in order to meet commercial objectives we harvest the trees and destroy the forest. World over, every plant matures. At maturity the CO2 absorption of the trees reduces and as a result cutting the trees in the sustainable manner while planting new trees does not harm the environment and therein lays the main theory behind successful sustainable commercial forestry.”
