AJAB Volume 2 Issue 1 2017

Amity Journal of Agribusiness 2(1), (28-37) ©2017 ADMAA

Role of Eco-Tourism for Sustainable Rural Development w.r.t. Maredumilli, Eco-Tourism Project, State,

Teki Surayya Adikavi Nannaya University, Rajahmundry, India

Abstract Government forest department promoted Community based eco-tourism project, Vanavihari. This project has given employment to local people. A management committee of 18 members manages the project and is self sustaining. Average monthly revenues is 100000 out of which, wages account for 54000, electricity overheads 15000, 1500 to forest department fee and maintenance 5000 are incurring p.m. Remaining amount is allocated for the up keep of local forest. Findings have shown that Vanavihari, gives livelihoods to 68 families. Impact of project includes; a) local people have become entrepreneurs, b) degradation of ecosystem has reduced, forest canopy has improved, c) communities have become safeguards against exploitation of natural forest. Main objective of study was to evaluate impact of project in terms of the project’s role a) providing livelihoods to local rural communities, b) protecting natural forest against exploitation and c) to measure role of ecotourism in mitigating climate change. Key words: Community, Eco-tourism, Rural Development, Livelihoods JEL Classification: Q00 Paper classification: Research paper

Introduction Forest Dwellers (FDs) largely depend on forest for sourcing their survival and growth needs. Maredumilli community based eco-tourism (CBET) project was commenced in the year 2005-06, at Maredumilli village, Rampachodavaram forest range, Kakinada, forest division, , Andhra Pradesh, India. Initially the project was financed and infrastructure was developed by forest department under World Bank project assistance in collaboration with local communities. The focus of the study was to investigate community based eco-tourism, microfinance and NTFPs value additions that can give impetus to the local forest living communities to support livelihoods of forest dwellers and act as mitigators of climate change. Forest is one of the major components of environment conservation. Conservation of forests results in safeguarding environment and mitigating climate change. Forests are often pressurized due to need fulfillment on one hand and extraction for luxurious/comfortable life on the other.

28 Amity Journal of Agribusiness ADMAA Volume 2 Issue 1 2017 AJAB The Vana Vihari (VV, excursion into forest), Maredumilli, handed over by the forest department after creating necessary infrastructure and imparting training to local people, to local Van Samrakshan Samiti (VSS) / Forest Protection Committees. A management committee of 18 members, drawn from all three villages on various skills based criterion including; guiding, hospitality, interpretation, guest entertainment, maintenance, equal representation to all three villages and gender, manage the project on their own that empowered especially women, and local forest community. VV is currently self sustaining and required resources to maintain the project would come from sale of entry tickets and accommodation charges, leasing of hospitality facility etc. However, the research project is envisaged at studying holistically; long-term sustainable management of VV, study financial viability, evolving forward and backward, resulting in integrated network amongst all the concerned stakeholders, including Forest department, communities, tour operators, travel companies, NGOs, and other government line departments. And also for augmenting vivid marketing strategy that would give national and international reputation to Vanavihari. It is also envisaged to measure the impact of VV in supporting livelihood of local people and conserving the forest. Forest living people depend on the forests sourcing their basic needs of forest produce and economic gains. Harvesting of forest produce in sustainable manner will not harm the environment. However, for economic gains alternatives have to be found to shift pressure from forest. Hence, role of Non-Timber Forest Products (NTFPs) value additions with the help of microenterprise, supported with microfinance assistance is one of the options. Need of finance becomes important for the value addition to forest produce particularly NTFPs. Due to lack of access to financial assistance to adapt value additions, thus supporting the livelihoods, the forest dwellers continue to depend on the forests for their needs in unsustainable manner. Therefore, providing microfinance to forest dwellers for financing their needs and undertaking NTFPs value additions will result in enhanced income level for supporting livelihoods to them and reducing pressure on forest, which in turn would contribute for conserving forests and contributing for mitigating climate change. The study area has rich forest covering (table 1) very dense forests, open and scrub forests. Table 1. Forest category in the study area

Forest Category Land (In Hectares) % Very Dense Forests 158837.70 52.77 Open Forests 100807.32 33.49 Scrub Forests 41347.00 13.74 Total 300992.02 100.00 Source: www.vanavihari.com Study District : East Godavari (Background) Total geographical area of the District is 10,821.12 Sq. km. The district consists of 5 Revenue Divisions, 59 Mandals and 1409 villages in the District. Out of the 5 Revenue Divisions, the Rampachodavaram Revenue Division consisting of 7 agency Mandals exclusively covers the predominantly forested agency track. Out of 59 Mandals, the forests are spread over 22 Mandals only. This District has 31% forest cover in a total area of 3336 Sq. km. The study has been conceived and formulated to achieve objectives ; a) to study long-term sustainable management of VV, b) evolving integrated network strategy for VV, c) list out the NTFPs that are available in study area and analyse the feasibility of identified NTFPs, d) mapping

Amity Journal of Agribusiness 29 ADMAA AJAB Volume 2 Issue 1 2017 further interventions for conducting training programmes to forest living communities for skill development, infrastructural facilities, publicity for consumer education about VV and e) to augment strategies for NTFPs value additions with the help of microfinance and market linkages to enhance the livelihoods of local communities.

Approach and Methodology The study was conducted in the Kakinada forest division, Rampachodavaram forest range, Maredumilli community based eco-tourism (CBET) project area of Andhra Pradesh state. The study area is bestowed with rich forest and supports the local people livelihoods directly or indirectly and also acts as carbon sink to mitigate climate change. The research study first identified the main actors primarily involved in vanavihari eco-tourism project and their respective roles and contributions. The study has also attempted to identify the NTFPs available in the vicinity of the project. Based on NTFPs identified, it short listed specific NTFPs based on the availability and market demand which can be considered for value additions that can be undertaken by the local communities through community and/or individual base microenterprise that would be promoted with microfinance assistance. Efforts have also been made to map out the requirements of local people capacity building programmes. The research study then explored the feasible and pragmatic integrated network of the core stakeholders including, NGOs, Government line departments, financial institutions, and market channel members for effective marketing of the value added NTFPs and eco-tourism services that are supporting the livelihoods of local people.

Data Source This research study embodies both primary and secondary data sources. To collect the required primary data, a structured questionnaire / schedule was canvassed amongst the sample with in the universe. Required primary and secondary data were gleaned from local people, NGOs, tourists, tour operators, hotels, travel companies, and forest department records. First, an extensive literature review on role of CBET, Microfinance and NTFPs value additions in supporting livelihoods of forest dwellers in general and its impact on socio-economic efficiency of forest dwellers economic development in particular were undertaken. The next stage was of primary data collection. Different methods such as PRA, discussion with people, personal interviews, field survey through questionnaire and schedule was used. Various sources of livelihood support to FDs and proportionate income accounted for NTFPs was reckoned. Secondary data on NTFPs harvesting, value additions, consumption, and emerging microfinance practices were collected from the forest department and forest dwellers of selected forest area. Further secondary data shows share of livelihood from eco-tourism activities and NTFPs trade and value additions to the forest dwellers. Apart from the above, field tours of the study area were under taken by the research team. The study on vanavihari eco-tourism has entailed analysis of the existing system of management by way of eliciting information on the necessary record systems, such as, the process of vanavihari marketing information dissemination, pricing and distribution and promotion system about the eco-tourism offered by the Vanavihari to the intended market. Mapping of various market risks (demand supply gaps, level and types of competitions i.e. direct competition

30 Amity Journal of Agribusiness ADMAA Volume 2 Issue 1 2017 AJAB and competition from substitute products) and marketing risks (design, branding, packaging, quality, pricing, distribution network, market linkages, promotional schemes, publicity, market testing, segmentation and targeting etc.) have been done. Analysis of consumer price spread was done with the help of cost sheet to find out share of the forest dwellers in the consumer price. Remedial measures / interventions have been evolved to enhance the share of forest dwellers in the consumer price. Mechanism for necessary interventional support to highlight the strengths (augmenting publicity in audio-visual media, consumer education, leaflets) of vanavihari to the respective consumers/markets has been evolved. Involvement of forest department in the promotion of Vanavihari was studied by interacting with concerned forest officers. It also studied the role of other government agencies, NGOs, tour operators, travel companies etc. Mapping of strategic, domestic and international markets mix for market sustainability was done. Pricing mechanism was evolved with the help of a cost sheet so that vanavihari services would become globally responsive and competitive.

Geographical area Rampachodavaram forest range, Maredumilli eco-tourism project surrounding forest area, Andhra Pradesh. A total of eight villages were selected on directional sampling technique base.

Sample size and techniques Eight villages based on directional sampling technique were selected as sample. A total of 20 households in each selected village constitute the sample size of the respondents. Respondents were selected on simple random and snow ball sampling techniques.

Justification Forest living people depend on NTFP, for their survival and growth. Due to lack of NTFPs value addition, market information, access to microfinance, and middlemen exploitations, forest dwellers are often under rewarded. Hence, a systematic study like the present one would explore and evolve vivid measures and interventions that would check the exploitation and provide livelihood to the forest dwellers.

The project has answered the following The study mapped out NTFPs that are widely available in the study area and identifies feasible NTFPs value additions that would be undertaken by the forest dwellers for supporting their livelihoods. The study provides vivid solutions to various marketing problems like low prices, middlemen exploitation, lack of value addition that are encountered by forest dwellers in collection and sale of NTFP.

Relevance of the Study The present study intends to solve various marketing problems like effective targeting and aggressive promotion of vanavihari services, NTFPs value addition, level of market information, constraints in channels of distribution of NTFP and sustainable harvesting level of NTFP. Hence, the impact of the study will be on the forest dwellers income which can be enhanced through systematic marketing technology, and simultaneously it will result in forest protection and conservation that would contribute towards mitigating climate change in the long-run.

Amity Journal of Agribusiness 31 ADMAA AJAB Volume 2 Issue 1 2017 Results and Discussions Poverty amongst the forest dwelling people and local resources value additions Poverty amongst rural people in India, poses a challenge for policy makers especially forest and revenue departments who largely deal with the rural people and forest living communities. Governments and policy makers are striving to reduce poverty in rural areas. However, illiteracy, alcoholism, lack of income generating activities, poor infrastructure, exploitation by moneylenders / traders, ineffective public service delivery network at grass root level and high incidence of corruption etc., are impeding poverty reducing toils in India. Table 2. Survival Amount Forest Living Family

Name of the village Amount Rs (PA) Kutravada 24720 I Bhimavaram 21140 Pandirimamidikota 22450 Valamuru 24000 Chintalapudi 21500 Somireddy palem 28333 Maredumilli 25750 Kotta colony 28500 Mean 24549

Source: Field survey, 2011 -12 As shown in Table 2 on an average a forest living family of four to six persons survives on mere Rs.24549 (equivalent value) per annum which is below poverty line, as per international definition, individual living on less than a $ 1.25 a day, even when compared with $ rate in 2011 and 2012 period. This shows the miserable living conditions of forest living communities, the poorest of the poor. Causes of poverty amongst forest living people may be directly attributed to ineffective and corrupt execution of poverty reduction programmes and exploitative users, landlords, traders etc. To augment income level of the forest living communities, measures include, better opportunities in marketing through Minimum Support Price (MSP); mechanism for market intelligence and information system; efficient Certification system for improved trade, revolving fund for primary collectors and their institutions; value chain development by aggregation; primary processing, grading, branding and certification; eco- services of NTFP such as Herbal ecotourism and local enterprise development; and encouraging corporate sector involvement- contract farming, infrastructure development, resource augmentation. Total budgeted amount of Rs.3000 crores concern policy makers and policy implementing government agencies should initiate measures to arrest such practices and can also take measures to streamline NTFPs marketing practices. A systematic NTFPs trade practices should be evolved to take care of announcing minimum local resources / NTFP procurement prices, information about end user application of NTFP etc. Already existing government agencies should enhance their efforts to succour the forest and rural living people in resisting manipulative traders. As shown in Table 3 forest living communities get about 25% of their survival income from the study area. Andhra Pradesh state of India stems from NTFPs harvest and trade. Income from NTFP trade can be substantially increased to two to three folds with the help of a set of innovative and eco-friendly value additions, that warrant for policy interventions including facilitating local people, with training to add value to the NTFPs, storage and market linkage system.

32 Amity Journal of Agribusiness ADMAA Volume 2 Issue 1 2017 AJAB Table 3. Contribution of NTFPs for Forest Living Communities Survival

Name of the village Amount Rs. % of survival Kutravada 8454 34.2 I Bhimavaram 7526 35.6 Pandirimamidikota 5702 25.4 Valamuru 4512 18.8 Chintalapudi 4902 22.8 Somireddy palem 5524 19.5 Maredumilli 5510 21.4 Kotta colony 7210 25.3 Mean 2634 25.4

Source: Field survey-2012, S Teki Local resources value additions and reducing poverty It has been observed during the field survey that forest living people (FLP) are largely dependant on NTFPs for their survival and growth. They get their bread by way of harvesting and trading of NTFPs. Table 4. Income Sources of Forest Living Communities in the Study Area

Name of the village Income from Income from Income from Others NTFP collection eco-tourism agricultural sources and sales activities and borrowings % % % % Kutravada 34.2 - 45.6 20.2 I Bhimavaram 35.6 - 43.3 21.1 Pandirimamidikota 25.4 - 37.3 37.3 Valamuru 18.8 15.9 32.6 32.7 Chintalapudi 22.8 - 41.7 29.4 Somireddy palem 19.5 17.8 28.6 34.1 Maredumilli 21.4 21.7 39.7 17.2 Kotta colony 25.3 10.5 29.7 34.5 Mean 25.4 16.5 37.3 28.3

Source: Field survey 2012, S Teki As shown in Table 4, about 25.4 % income comes from NTFPs trade and 16.5% income is coming from eco-activities in the study area. The seasonability of NTFPs availability compels the FLPs to source their requirement from the usury system that is predominant in the local vicinity. These greedy moneylenders exploit the FLPs, by not only lending at high rate of interest but also snatching the NTFPs at un-remunerative prices, many a time without any value addition. And the poor FLPs are forced to surrender their inventory as soon as they harvest, to the local trader / moneylenders against advances taken from them. If the FLPs are included into formal financial system to finance their needs at affordable cost and given a privilege to repay these advances in small installments, suitable to their cash inflow, they will certainly be relieved from the clutches of the indigenous bankers and local traders. These steps will further enable and motivate them to undertake local resources (NTFPs) value addition options. Thus intervention, like financial

Amity Journal of Agribusiness 33 ADMAA AJAB Volume 2 Issue 1 2017 inclusion for NTFPs value addition will certainly go as an effective tool for the poverty reduction that can raise the income of forest FLPs. Lemon Grass: A grass, Bhide (2001) which contains citral in its oil, is extracted from its leaves of species Cymbopogan. Lemon grass is being used in different medicines in India, since long. A perennial, densely tufted, aromatic, tall grass, stems through underground shoots, with leaves in dense clusters, long, linear, pointed, green with inch broad leaf base. A small plant can take care of the production of lemon grass oil from 4 ha of land. Raw Material: Lemon Grass: Natural (Wild) As informed in the field that the wild lemon grass is available in abundance. Hence only collection and transportation charges are to be incurred, under raw material head. (Lemon Grass: 1 Ha. irrigated- on an average can give 60 to 80 Kg of oil) The final product after distillation will be Aromatic Lemon Grass Oil, which is used in cosmetic and pharmaceutical applications. Cost Benefit Analysis: Lemon grass cultivation by local tribal communities (Andhra Pradesh State, East Godavari District, Rampachodavaram forest range Maredumilli area) S Teki, (2012) Land size 1 acre, 3 harvests per annum. Output 1500 to 2000 kg per harvest and three harvests per annum = 4500 to 6000 kg grass output, once seeds sown they last for five to six years rotations. Table 5. Lemongrass Cultivation and Processing (one acre land)

Particulars Units Amount INR

Sowing: 10 labourers 2-3 days, 10 x 2 ½ days 25 labour days @ Rs. 30 per day 750 Harvest labour 10 x 2 ½ labour days 25 labour days@ Rs. 30 per day 750 (mutual exchange of labour) excluding refreshments and meals Prime cost (A) 1500 Yield per 3 harvest 5000 -6000 kg (1833 kg, Selling price of lemon grass per kg 5500 per harvest x 3 harvests p.a. = 5500 kgs ) Re 1 per kg (B) Benefit (Profit) to FLC (A) – (B) for cultivation = (P1) 4000 Output (lemon grass oil) 330 kg grass can 1 litre oil price is Rs. 300/- per kg 14100 give 2.5 litres in rainy season and 3 litres in (5500 /330 * 2.8) = 47 liters * 300 (C) winter and summer season Boiling time 2 ½ to 3 hours takes 25 x 20 kg 500 Kgs fuel wood Opportunity 1000 firewood cost estimated (D) Benefit (Profit) to FLC for value addition (C) – (D) = (P2) 13100 NET Benefit (Profit) to FLC for value addition (P1) – (P2) = (NP) 9100

Source: Field survey 2012(S Teki) From the Table 5 it is inferred that cultivation and value addition of lemongrass on one acre of land gives an output (one acre land) / expected yield 1833 kg, per harvest x 3 harvests p.a. = 5500 kgs x Re 1 = Rs. 5500. Thus total income for cultivation of lemongrass one FLC household (HH) estimated to be INR 4000 (5500 -1500) if they (HH) sell lemongrass without value addition. Further that FLP household undertake value addition ( extracting oil from lemongrass) the HH gets an estimated further enhanced income INR 9100 (228%). By and large that HH is expected to mop up a total income of 4000 + 9100 = 13100 per annum on a piece of one acre land and as

34 Amity Journal of Agribusiness ADMAA Volume 2 Issue 1 2017 AJAB spin-off it also generates employment (labour sowing, harvest and value addition). Therefore, the poverty reduction policy makers and government should evolve measures and policies to build capacities of rural living (FLPs) for value addition, be included in the formal financial system and more importantly provision for market linkages for the value added local resources. Inputs required for lemongrass cultivation and oil extraction: seeds once sown last for five to six years. Labour cost of sowing seeds (10 persons two to three days, 10 x 2 1/2) = 25 mandays x 30 = Rs. 750 Labour cost for harvest 10 x 2 ½ = 25 mandays x Rs. 30 (mutually exchange basis) = Rs. 750, 330 kg lemongrass could yield 2 ½ liters oil in winter and 3 liters Litter lemongrass oil price is Rs. 300/- per litter Boiling time 2 ½ to 3 hrs. About 500 kg fuel wood is required for extracting oil from lemongrass. Similar proven reckonings were made Pethiya and Teki, (2003) that Mohual (Bauhinia vahlii) leaves value addition (making leaf plates from leaves) could enhance FLPs household income from INR 10 (if they sell harvested leaves without value addition) to INR 50, when value addition is made (making plates from leaves) there is tremendous fourfold increase in the income levels of poor people. Table 6. Cane / Rattan Furniture Value Addition

Item name Cost of material Total Labour prime cost / material cost cost (B) selling price Cane varnish Nails (i) + (ii) + (A)+(B) (ii) (iii) No. of sticks cost (i) (iii) (A) consumed Teapoy 20 80 70 60 210 390 600 Chair 50 200 70 70 340 260 600 Swing 50 200 70 100 370 730 1100 Footwear stand 20 80 40 40 160 140 300 Phone stand 15 60 30 30 120 30 150 Bangle stand 10 40 30 20 90 10 100 Sofa 100 400 70 100 570 630 1200 Baby chair 30 120 40 40 200 100 300 Cot 250 1000 280 220 1500 3500 5000 Stool 15 60 40 40 140 160 300 Source: Field survey 2012-13 Table 6 shows rattan value addition and income to the forest dwellers in the study area, as rattan is available in the study area. There are few households who are adding value to rattan to make various furniture items. It is inferred that, to make a chair and swing with rattan sticks, however swing making consumes more labour and fetches high price Rs. 1100, which is (1100 -500) Rs. 600 greater than that of chair price. When it is reckoned every stick of material (rattan) consumed gives labour return Rs.14.6 followed by cot making Rs.14, sofa making Rs. 6.30, with in the large items. Whereas, small items labour revenue fetching is highest for Rs. 19.5 stool, Rs. 10.7 footwear, stands Rs. 7.0 and baby chair Rs. 3.3. Hence, within large gamut of large items, swing making is more labour intensive and in small items it is stool making that fetches highest labour revenue for stick. If forest dwellers have time to spent, they should focus on swing and stool making and selling. Each rattan stick price estimated to be Rs.4 which was opined by the concern forest dwellers who are making rattan furniture. The above said inference holds good, when there is sufficient demand for the said items.

Amity Journal of Agribusiness 35 ADMAA AJAB Volume 2 Issue 1 2017 In the study area average family size is 4-6 persons and they survive on mere Rs.24549 (equivalent value) pa, less than a $ 1.25 a day, which is below poverty line as per international definition. This shows the miserable living condition of forest living communities, the poorest of the poor.

Conclusion Forest living communities in the study area get about 25% of their survival income from NTFPs harvest and trade. Income from NTFP trade can be substantially increased by two to three folds by undertaking innovative and eco-friendly value additions. That warrants for policy interventions including facilitating the FLPs, with training by Government agencies like ITDA, forest Department, local NGOs in collaboration with suitable training academies, to add value to the NTFPs, storage and market linkage system. A HH income of INR 4000, can be earned per acre by cultivating lemongrass, this can give an additional income of INR 9100 (228%) if the HH add value and sells lemongrass oil. Hence, HH is expected to earn a total income of 4000 + 9100 = 13100 per annum on a piece of one acre land besides providing labour sowing, harvest and value addition. All these necessitates policies to impart training for local resource value addition, they should be included in formal financial system and backward and forward linkages for inputs and market respectively. It is suggested that the rattan furniture maker should focus on chair making as every stick of rattan utilised gives labour return INR 14.6, followed by cot making INR 14.0 sofa making INR 6.30. It is also suggested that small items; stool gives INR 19.5, per stick followed by footwear stand INR 10.7. Involvement of an NGO is beneficial to rattan furniture maker in reaching the up markets for selling the furniture for better price.

References Andhra Pradesh Forest Department (2014). Retrieved from http://forest.ap.nic.in/ Forest%20Flora%20of%20 Andhra%20Pradesh/ index.htm Arthur A.T., Stickland, A.J. & John, E. Gambl.(2005). Crafting and Executive Strategy. New Delhi, India: Tata- McGraw-Hill. Pethiya, B.P. & Teki, S. (2003). Assessing the Impact of Micro-Finance as a tool for adoption of appropriate technology and conserving the environment. (Research Report), IIFM, Bhopal, India. Pethiya, B.P. and Teki, S. (2004). Emerging Microfinance Practices: with special reference to Forest Dwelling community in Andhra Pradesh and Madhya Pradesh states. Journal of Paradigm, VIII(1), 81-97. Karmakar, K.G. (1999). Rural Credit and Self-Help Groups, Micro-finance Needs and Concepts in India. New Delhi : Sage Publication. Manish, M. & Teki, S. (2002). Sustainable Harvesting, Value Addition and Marketing of selected Non-Timber Forest Products A case study of Koraput and Malkangiri Districts, Orisa State. (Research Report), IIFM, RCNAEB, Bhopal.

Vanavihari (2014). Retrieved from http://www.vanavihari.com/ department.php? page=department.

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Author’s Profile S Teki is currently Professor, Dean and Chairman BOS, Department of Management Studies, Adikavi Nannaya University, Rajahmundry, India. He has a total of 24 years premier academic experience including eleven years at national level management institutions; National Institute of Financial Management, Faridabad and the Indian Institute of Forest Management, Bhopal, academic administration, research, consultancy and training. He has published 50 papers/articles in national and international journals and international conference proceedings publications. He has extensively travelled all over the world visiting 30 countries delivering various sponsored academic assignments.

Appendix Table of Abbreviations

Abbreviation Full form CBET Community Based Eco-tourism FD Forest Dwellers FLC Forest Living Communities FLP Forest Living People HH Household INR Indian National Rupee ITDA Integrated Tribal Development Authority NTFPs Non-Timber Forest Products NGOs Non-Governmental Organization PRA Participatory Rural Appraisal Rs. Rupees VV Vanavihari VSS Van Samrakshan Samiti

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