Since 1989 2,057 private farm nursery contracts have been issued in four forest divisions of Punjab and tow forest divisions of NWFP. A sample survey of approximately 10 percent of these contracts was undertaken in 1993. This study describes attributes of private farm nursery operators, estimates the supply, demand and direct sale of tree seedlings from private farm nurseries, identifies limitations which prevent the marketing of tree seedlings, and suggests changes in forest department policies which could increase seedling sales.