People do not grow what they cannot use
Preservation laws have made trees a problem for people
STATE monopolies are not exclusive to modern times. Mining was the preserve of the state in ancient and medieval times. The Mughal state exercised an iron hand over opium production and trade. Once the Mughal empire declined, satraps asserted their independence by establishing monopolies over various commodities including tobacco and salt. But there is a crucial difference between state monopolies then and now. Modern states claim custodianship of resources on behalf of the people. But it rarely translates into practice. State monopolies, like all other monopolies, are almost always self-serving.
Take the case of sandalwood that was first brought under state control by Tipu Sultan in the 18th century. Till 2001, trade in sandalwood was a monopoly of the government of Karnataka. A nexus of the bureaucrat-smuggler-law enforcer flourished giving fillip to illegal trade in sandalwood. The best known, and perhaps the biggest trader, was the forest brigand Veerappan, who went on to become the stuff of folklore. Since then, although individuals were allowed to take up sandalwood plantation, the state government retains rights of extraction and trade. The 2001 deregulation is not applicable to standing trees, in both the forest and private lands. Since forest laws related to sandalwood remain stringent, anybody interested in decent business in it can do so only by bypassing these laws. Illegal trade in sandalwood continues to flourish.
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