;6 
Indian Forest Records. 
[Vol. VIII 
It will be observed that, during the whole of 1912, Calcutta TN 
prices were low; from chart No. II the cause is seen to be the large 
stocks held in London. At the same time supplies of stick-lac were 
ample, and manufacturers, therefore, had matters much their own 
way, with the result that practically throughout 1912 there was a 
small manufacturing margin of profit and Calcutta prices fluctuated 
very little. In 1913 conditions changed. The stick-lac crop was poor, 
and this factor, combined with a slight decrease in the London 
stocks, caused a big advance in Calcutta prices. TN prices 
fluctuated considerably and owing to the shortage of the crop 
the stick-lac prices fluctuated even more violently, with the result 
that the interrupted line is, more often than not, below the solid line, 
showing that spot sales did not yield a profit. 
The first step required to stabilize the trade is to ensure a steady 
supply of stick-lac and the second is to provide an early and reliable 
forecast of each crop, A tour of the stick-lac districts makes it quite 
clear that increased production is more feasible than has hitherto 
been supposed. In fact it is not unlikely that Manbhum or Ranchi 
districts alone, if they produced their largest possible outturn of 
stick-lac (an unattainable ideal), could provide the whole of the 
world’s requirements. At present the total Indian supply is, more 
often than not, less than the demand. The action Government can 
take with the object of regularizing supply may be direct or indirect. 
The direct method is by developing lac cultivation in the extensive 
Government forests. This has begun in the Central Provinces 
where departmental work has already trebled the supply in Damoh. 
The Local Government is extending this work to other districts and 
is appointing a special staff including a special department for 
research. In view of present scarcity conditions in the foreign 
markets there can be very little fear of over-production for some years 
to come. The indirect method of Government action is twofold: 
firstly, the formation of brood and demonstration farms throughout 
the lac districts, as advocated in Chapter IV. The importance of 
these farms cannot be too strongly emphasized. Secondly, much 
good would result from the publication of authoritative periodical 
reports on the crop, based on the experience obtained in Government 
forests. These reports need not at first give quantitative estimates 
but should show in some detail the effects of climatic conditions. 
{76] 
