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

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.