Sikkim Govt Hikes Forest Produce Royalties by over 33%, Move Might Impact Trekking Business

The Government of Sikkim has announced a major revision to forest produce royalties and service fees, effective from 13 September 2024, which may significantly impact trekking activities across the state.

The Government of Sikkim has announced a major revision to forest produce royalties and service fees, effective from 13 September 2024, which may significantly impact trekking activities across the state. The changes, detailed in a notification by the Forest and Environment Department, outline substantial increases in charges for forest resources and services, potentially affecting both trekking costs and operational expenses.

Key revisions include a hike in timber royalties, with Class-I teak now costing Rs 1,600 per cubic foot, 33 per cent up from Rs 1,200, and Class-II timber rising to Rs 1,500. Sal timber is similarly affected, with rates set at Rs 1,000 per cubic foot for Class-I and Rs 800 for Class-II. The new fees for miscellaneous forest produce, such as Rs 1,600 per plant for tree fern and Rs 1,000 per 40 kilograms of moss, could have a direct impact on trekking companies that utilise these materials.

The cost of firewood has also surged, with household firewood now priced at Rs 100 per headload and commercial firewood at Rs 250. Other material costs, like stone chips (Rs 400 per 100 cubic feet) and sand (Rs 300 per 100 cubic feet), may affect the construction and maintenance of trekking paths and campsites.

Moreover, the revised fees for forest rest houses and conference halls, set at Rs 500 and Rs 5,000 per day respectively, could alter accommodation options for trekking groups. These changes may lead to increased costs for trekkers and trekking companies operating in Sikkim.

Also read: Opposition Parties Including CAP, BJP Urge Sikkim Govt to Withdraw Vehicle Tax Hike Notification

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