Himachal Pradesh State Forest Development Corporation is reportedly incurring a recurring annual loss of Rs 2.31 crore in the trade of turpentine oil and resin, primarily due to the unavailability of international market data, CM Sukhvinder Singh Sukhu informed the Assembly on Saturday while presenting the Public Undertakings Committee (PUC) report.
The report, which follows up on the 77th PAC report (2017–18) related to the Forest Corporation, evaluates the implementation of past recommendations and examines the corporation’s pricing policies, marketing strategies, and ability to respond to changing market dynamics. According to the report, the corporation had previously relied on international online platforms to track global prices and demand trends. However, after 2016, access to these platforms was restricted or discontinued, reportedly due to regulatory issues, leaving the corporation without real-time global market intelligence.
The PUC observed that the lack of international data hindered the development of competitive pricing and effective marketing strategies. The problem was compounded by increased imports of resin and turpentine from countries like Nepal, Vietnam, China, and Brazil, which reduced domestic demand and affected sales.
The committee also noted that despite earlier recommendations, the department did not provide comprehensive updates on marketing outreach, international surveys, or coordination with buyers, highlighting gaps in planning and transparency. The report emphasized that the annual loss of Rs 2.31 crore has persisted since 2016, which could cumulatively amount to around Rs 23.10 crore over a decade, indicating a substantial long-term financial impact.
To address these issues, the PUC recommended that the Forest Corporation strengthen its market intelligence systems, regain access to international pricing data, and adopt a structured, proactive marketing strategy to prevent further losses.
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