Trading of Subabul/Eucalyptus/ Casuarina – Revised policy – Guidelines

Agricultural Marketing Department – Trading of Subabul/Eucalyptus/
Casuarina – Revised policy – Guidelines – Issued.
G.O.RT.No. 31 Dated: 18-01-2018
 Read the following:-
 (1) G.O.Rt.No.188, Agri & Coop(AM.I) Dept., dt:10.06.1999.
 (2) G.O.Rt.No.143, Agri & Coop(AM.II) Dept., dt:19.02.2016.
 (3) G.O.Rt.No.493, Agri & Coop(AM.II) Dept., dt:09.08.2017.
 (4) G.O.Rt.No.2637, G.A. (Cabinet-I) Dept., dt: 28 .11.2017.

In the Government Orders 2nd and 3rd read above, guidelines
were issued for trading of Subabul / Eucalyptus / Casuarina.
2. Later, certain problems faced by the farmers have came to the
notice of the Government and in order to overcome the problems in
trading of Subabul / Eucalyptus / Casuarina, Government have decided
to introduce a new policy for trading of Subabul / Eucalyptus /
Casuarina and accordingly, in the Government Order 4th read above,
orders were issued constituting a Committee of Group of Ministers with
the following Ministers to examine the marketing of Subabul /
Eucalyptus /Casuarina Wood of farmers for framing guidelines for
streamlining the purchases of Subabul / Eucalyptus / Casuarina.
1. Hon’ble Minister for Marketing, Warehousing, Animal
Husbandry, Dairy Development, Fisheries and Cooperation;
2. Hon’ble Minister for Agriculture, Horticulture, Sericulture
and Agri Processing;
 3. Hon’ble Minister for Water Resources Management; and
4. Hon’ble Minister for Environment and Forests, Science and
3. The Group of Ministers, after conducting series of meetings with
the VC & Managing Director, AP Forest Development Corporation
Limited, Joint Collectors, Marketing Departmental Officials, Chairmen
of Market Committees and Paper mill representatives discussing the
issues and fixing the price of Subabul at Rs.4200/- per MT and
Eucalyptus / Casuarina (Debarked) at Rs.4400/- per MT at notified
Weigh Bridges of the concerned Agricultural Market Committees. The
Group of Ministers have suggested the A.P. Forest Development
Corporation not to sell Subabul / Eucalyptus / Casuarina to the Paper
Mills till the completion of the stocks with the farmers. The
Committee also suggested to cancel the G.Os. 2nd and 3rd read above
and also suggested that the Paper Mills should purchase the Subabul /
Eucalyptus / Casuarina in the ratio based on the area of crop
cultivated in the District.
Area of the crop cultivation of Subabul/Eucalyptus/Casuarina in the
State is as follows:

No Name of the
                     Subabul Eucalyptus Casuarina
                     In acres Ratio  In acres Ratio In acres Ratio
1 Srikakulam 0.00 0.00 18518.00 8.47 16283.00 24.34
Vizianagaram 921.00 0.86 8512.00 3.89 8297.00 12.40
Visakhapatnam 525.00 0.49 0.00 0.00 0.00 0.00
4 East Godavari 22.00 0.02 639.00 0.29 5797.00 8.66
5West Godavari 0.00 0.00 9041.00 4.14 1896.00 2.83
6 Krishna 43337.50 40.54 1692.50 0.77 0.00 0.00
7 Guntur 16805.64 15.72 5157.09 2.36 54.36 0.08
8 Prakasam 44547.00 41.67109969.00 50.35 8463.00 12.65
9 SPSR Nellore 736.36 0.68 64848.92 29.69 26086.35 39.00
10 chittoor 0.00 0.00 0.00 0.00 0.00 0.00
11 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00
12 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00
13 Ananthapuram 0.00 0.00 0.00 0.00 0.00 0.00
Total 106894.50 100.00 218377.51 100.00 66876.71 100.00

4. They have also suggested that the Paper Mills shall submit their
indent to the Commissioner & Director of Agricultural Marketing based
on the yearly requirement of Subabul /Eucalyptus/ Casuarina since the
farmers of Subabul /Eucalyptus/ Casuarina in Krishna, Guntur,
Prakasam and Nellore District are facing much difficulty to sell their
produce. The paper mills should purchase the produce in the
following ratios.
 No Name of the  District
                        Subabul Eucalyptus Casuarina
                  In acres Purchase of Ratio
                                           In acres Purchase of Ratio
                                                             In acres Purchase of Ratio
1 Krishna 43337.50 41.10 1692.50 0.93 0.00 0.00
2 Guntur 16805.64 15.94 5157.09 2.83 54.36 0.157
3 Prakasam 44547.00 42.25 109969.00 60.53 8463.00 24.45
4 SPSR Nellore 736.36 0.698 64848.92 35.69 26086.35 75.38
Total 105426.5 0 100.00 181667.51 100.00 34603.71 100.00

(For example if the paper Mill requires 100 MTs of Subabul in the
year 2017-18, the Mill should purchase of their requirement 41.10%
from Krishna District, 15.94% from Guntur District, 42.25% from
Prakasam District, 0.698% from SPSR Nellore District and similarly for
Eucalyptus and Casuarina).
5. Government, after careful examination of the issue, hereby
accept the suggestions of the Group of Ministers and hereby issued the
following guidelines for trading of Subabul / Eucalyptus / Casuarina
duly canceling the orders issued in the G.O.s 2nd and 3rd read above
 System for Trading of Subabul /Eucalyptus/ Casuarina :
a) The Paper Mills shall purchase Subabul/Eucalyptus/Casuarina
at identified Weigh Bridges at the above prices in the interest
of farmers welfare. Weigh Bridges will be identified by a
Committee consisting of Secretary of Agrl.Market Committee,
Asst. Director of Marketing and Joint Director of Marketing
concerned. Weighment shall be done in the presence of the
farmers, representatives of Paper mills & representative of
b) Any other company willing to purchase Subabul/Eucalyptus/
Casuarina shall be permitted to purchase only the identified
weighbridges at the above prices.
c) The Paper Mills/ any other Company shall indicate the
quantity it wants to purchase and shall give Bank
Guarantee for purchase value of one week quantity to the
concerned Market Committee. The Market Committees shall
not allow any of the Paper Mills/any other companies to
purchase any stock exceeding the value (or amount) of Bank
Guarantee. The Secretary shall review the Bank guarantee
on weekly basis and collect the Bank guarantee accordingly.
Any deviations in this regard, the Secretary of the concerned
AMCs will be held responsible.
d) The weigh bridge operator shall issue Computerized
Weighment Slip and sales slip shall be prepared in
quadruplicate duly signed by farmer, representatives of paper
mill and Agricultural Market Committee. Subabul Assistant
shall issue data chitta based on the weighment slip which
shall be quadruplicate, first copy to the paper mills/any other
Company, second copy to the Agricultural Market Committee,
third copy to the farmer and fourth copy remains in the Kata
Chitta Book.
e) The in-charge of paper mills/any other Company at the
weighbridge shall submit the weighment slips to the company
concerned and take necessary action for payment of sale
proceeds to the farmer.
f) AMC will issue permits to the paper mills/any other Company
for transporting the Subabul/Eucalyptus/Casuarina from the
Weigh Bridge. Duplicate copy of permit will be sent to
Agrl.Market Committee along with monthly return. The
Secretary shall review payments of sale proceeds to the
farmers and the collection of Market Fees on weekly basis and
issue permits accordingly.
g) Whenever APFDC is selling Eucalyptus Pulpwood to ITC,
International Paper APPM Ltd. And BILT, care should be taken
to manage supply schedule in such a way that the farmers
interests are protected and APFDC shall closely coordinate
with the Market Committees of Prakasam and Nellore districts
for management of supply schedule.
h) To ensure implementation of the correct prices at the notified
weigh bridges.
i) The transactions of Subabul/Eucalyptus/Casuarina shall
maintain through software system only.
j) Paper Mills/any other company shall pay the sale proceeds to
the Farmers directly through online within 5 days.
k) To deploy Agricultural Market Committee staff at notified
Weigh Bridges.
6. Government also hereby constitute a District Level Committee
with the following Members to monitor the purchase of
Subabul/Eucalyptus/Casuarina by the paper mills/any other company
from time to time at the rates fixed by the Government and as per the
ratios proposed above.
1. Joint Collector – Chairman.
2. District Forest Officer (Social Forestry)- Member.
3. Joint Director of Agriculture – Member.
4. Regional Transport Officer – Member.
5. Assistant Director of Marketing – Member/ Convener.
6. Representatives of farmers associations.
7. Representatives of paper mills.
7. The Special Commissioner & Director of Agricultural Marketing,
A.P., Guntur shall take further action accordingly.

Spl.Chief Secretary to Government.

The Special Commissioner & Director of Agricultural Marketing,
A.P. Guntur
The Vice Chairman and Managing Director, AP Forest Development,
 Guntur for necessary action.
Copy to:
PS to Minister (Marketing), A.P., Velagapudi.
PS to Spl. Chief Secretary to Government.
//Forwarded by Order//
 Section Officer

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