The forests have a great contribution to the economic life of the Malkangiri District.The district is possessing dense forest of dry deciduous type. 31.96% of the entire district is covered with forests.The forest products can be classified in to the following categories listed below, apart from thses a lot more is discussed relating to forest of Malkangiri District.

Forest-Produce:

(1) Major forest-produce:-

          Others like Sal, Resin, Rella Bark, Lac, Soapnuts, Reeds, Canes, Honey, Arrowroot, Mohua flower and seeds, Pongam seeds, Cleaning nuts, Wax, Horns, Skins, Nux-vomico, Shoekey, Marking nuts, Gooseberry, Tangudu bark, Kusum seeds, Brooms, Silk cotton, Kath and medical herbs are available.

Markets for Forest-Produce:

          It is only such produce, which is in surplus after meeting consumption by the in habitants accordig to the rights and customs, that is given to the Forest Marketing Co-operative Society fot disposal.
          Teak, Bamboo and other miscellaneous Species in Motu and Malkangiri ranges are transported to Rajahmundry along the rivers Sabari and Godavari. Bamboos and Sabai Grass are supplied to paper mills at Rayagada down the road communication.

Rights and Concessions:

          No rights have been allowed within the reserved lands. Several rights and concessions are allowed in protected lands and unreserved lands. The rights and concessions in protected lands are same as in unreserved lands excepting that new cultivation is not permitted in these forests and land under cultivation, if not cultivated for two seasons, shall not be reclaimed. Nieteen species of trees have been declared to be reserved in protected and unreserved lands. The felling of phorbited trees without permission of the Collector is an offence. The clearing of any reserved land for Podu cultivation without express permission of the Collector is prohibited.

          Within unreserved and protected lands inhabitants of the villages or the adjoining villages are allowed. Free of charge for domestic and agricultural use, cutting of grass, collection of minor produce, collection of leaves and shrubs of non-reserved species, felling of trees not reserved or prohbited and also grazing of their cattle. Privilage-holders, defined as member of 43 different hill tribes are further permitted to fell reserved trees up to 3 feet in girth in unreserved or protected lands.

Developments of Forests:

          For preservation and development of forests in the district, a lot of reorganisation and change in rules and prescription seem to be necessary. A working plan to be prepared and followed inplace of working schemes. Podu cultivation is now forbidden on reserved and protected lands and is allowed on unreserved lands subject to permission from Collector of the District. More stringent prescription have to be divised to prevent the menacing effects of this type of cultivation.

          Certain rules in operation in other parts of the State relating to timber transit, shooting, etc. needs to be extended to the forests in the District, while many of the rules in vogue require amendment to ensure better preservatio. Teak plantation on large scale is possible in Motu, Malkangiri ranges and along the banks of Sabari. the current schedule of rates of royaly in force is also too low and needs revision. There is also scope to open a few game sanctuaries particularly in this District, where wild buffaloes are available in large number. There is scope to start a few forest based industries like a paper pulping plant with bamboos from Motu and other parts of Malkangir District, a factory for tanning lac industry and saw mills.

Agriculture:

          In Malkangiri District cultivation is only carried on in the sketchiest manner, the most typical forms being the Podu cultivation of the wild tribes in the hills in the east of the district and the rather casual growing of rice in swampy clearing in the forest in the plain lands.

Land Reclamation:

          Culturable waste in the district being acarce over a hundred thousand acres of forest had to be cleared to provide land to the "Dandakaranya Authority" for reclamation and resettlement of persons displaced from East Pakistan (Bangladesh). large areas have also been given to Scheduled Castes and Scheduled Tribes for reclamation and clutivation in place of shifting cultivation practised in the past.

Natural Calamities:

          Unlike the costal districts of the State, this district is less subject to natural calamities. Situated within the region of cyclonic disturbances of the Bay of Bengal, this district is frequently visited by storms in the mansoon and pre-mansoon seasons. The storm is generally accompanied by heavy rains as the district is situated in the Eastern Ghat mountain ranges. After rainfall, almost all the rivers swell and give rise to flood. The annual precipition is more due to presence of high mountains and deep forest. With heavy rains the mountain streams swell and become unaffordable for sometime. But due to high gradient of surface, the water is drained out in a hour ot two after the cessation of rains. the areas drained are generally mountain-valleys and are very thinly populated; the river-valley being steep, cultivation thereon is rare.

          Though floods are not so damaging, drought resulting from failure of rains has been a source of calamity, during the last few years. There has been total or partial failure of crops in some parts. A number of water pumps and irrigation projects are set up by the State Government to partially restore the crops.