Timber and non-timber forest products (NTFPs) play a vital role in meeting the raw material requirements of industries and local communities in India. However, over the past few decades, the widening gap between demand and supply has posed a critical challenge to sustainable forest resource management. The implementation of stringent forest policies, coupled with restricted harvesting from conventional forest areas, has drastically reduced the domestic supply of raw materials. Consequently, industries dependent on wood, pulp, bamboo, gums, resins and other forest-based products increasingly rely on imports, thereby exerting pressure on trade balances and escalating production costs. This study aims to assess the demand–supply dynamics of forest-based raw materials in India, with a particular focus on identifying the extent of shortages and their implications for market efficiency. The analysis reveals that while consumer demand for forest products has consistently increased, domestic production has stagnated due to policy restrictions, limited plantation efforts and ecological concerns. The resulting shortfall not only disrupts the functioning of forest-based industries but also affects rural livelihoods dependent on the collection and trade of NTFPs. Furthermore, price volatility in both domestic and international markets adds to the uncertainty faced by stakeholders. The findings underscore the urgent need to strengthen sustainable forest management practices, promote farm forestry and agroforestry as alternative sources of supply and improve policy frameworks that balance conservation objectives with industrial requirements. Addressing these challenges is essential to ensuring long-term resource security, livelihood stability and economic growth in the forestry sector.
