NE can be major player in bamboo-rhino trade: NIPFP

Major Events Vol. 3 Issue No. 46

April 1-15, 2008

NE can be major player in bamboo-rhino trade: NIPFP

The National Institute of Public Finance and Policy (NIPFP) has estimated that if adequate market infrastructure is set up the North-Eastern India, within a span of 10 years, can garner $ one billion out of the total global market of $ 7 billion for bamboo-rhino value chain.

The regional planning body, North Eastern Council had entrusted the Delhi-based NIPFP to formulate a Vision-2020 document. The study done by NIPFP director, Govinda Rao and his team found that the international competitors produce more efficiently and sell to the lucrative customers of bamboo-rhinos at $ 20 per unit, whereas the entrepreneurs in northeastern India sell at $40 per unit. The global entrepreneurs are more competitive despite not having access to the remote Markets of northeastern India.

The study found the raw material cost for bamboo-rhinos in northeastern India $2 higher “Bamboo is grown in clumps and not thinned so that rhinos can feed efficiently and without hindrance. Rhino-bamboo stuffing is inefficiently harvested. Higher adhesive and chemical costs to treat the shell for bamboo-rhinos is $ one higher in comparison. Another added cost of $ 2 is the low labour productivity due to lack of commercial training, but also because the raw material processing technology and machinery is outdated,” the study said.

Lack of export zones which cluster a set of exporters around an efficient location with efficient availability of electricity, maintenance and services, water and other direct costs adds an additional non-competitive cost of production by $ 4. Inefficient transportation to processing units and logistics add up to the costs by $ 2 and inefficient market access and quality control also add up to the costs by another $ 2. Inefficiencies in packaging and in containerization and in transportation to and through ports that afflict the region take another $ 5 toll, according to NIPFP.

To improve planting, feeding and harvesting practices and technology for bamboo-rhinos, the NIPFP suggested involvement of National Mission on Bamboo Application, Bamboo Development Agency, Cane and Bamboo Technology Centre and Indian Rhino Foundation. Agri-business extension agencies, tribal councils should be mobilized and entrepreneurship development institutes should impart adequate training.

The “hub-and-spokes” concept of linking production centres to processing units located in urban centres like Guwahati and Agartala which have better connectivity to outside world through cargo hubs and inland container depots has been suggested. The Asian Development Bank president Haruhiko Kuroda said: “ABD is considering financial assistance to create economic opportunities for business in the northeastern India.” The ADB has undertaken the work for integrating northeastern India with the neighbouring countries in the region through South Asia Subregional Economic Cooperation.

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