EUCALYPTUS SALES BY SMALL FARMERS IN EASTERN GUJARAT

In India, small farmers have generally found that the growing of eucal ypts as a cash crop provides poor returns, and many have reverted to g rowing annual crops. Farmgate prices have been much lower than retail prices, due to the existence of middlemen, and retail prices have fall en to lower levels than expected as markets have become saturated. Thi s article describes the situation in eastern Gujarat, where farmers so ld their eucalypts directly to buyers at prices close to those in orga nised wood markets. An important reason for this unusual situation is the absence in Gujarat of controls on eucalyptus sales, which has help ed producers to avoid dependence on rent-seeking intermediaries. The s urvey shows that growing eucalyptus can be a profitable activity for s mall farmers, given the right circumstances.