India: Transforming into a Net Exporter of Wood and Wood Products
- June 11, 2024
- 0
Agroforestry, an integral component of India’s rural landscape, manifests in two primary forms: subsistence agroforestry and commercial agroforestry.
Subsistence agroforestry primarily occurs at homesteads, farmlands, etc., addressing personal needs for timber, fruits, and fodder and any surplus produce is sold in the market. Commercial agroforestry, on the other hand, focuses on cultivating tree crops specifically for the production of timber to fulfil the raw material demands of the wood-based industry.
In the 1980s and 1990s, externally aided projects aimed to promote agroforestry, with a particular emphasis on cultivating tree crops. The 1988 National Forest Policy facilitated direct collaborations between wood-based industry and farmers to meet raw material demands.
The adoption of improved varieties and cultivation practices significantly enhanced the quality and productivity of tree crops. The increased demand for farm wood, marked by a 15% rise in timber rates, contributed to the widespread adoption of commercial agroforestry as a lucrative land-use option.
The symbiotic relationship between the development of agroforestry and wood-based industry calls for the encouragement of the latter to accelerate the growth of the former. According to the “India State of Forest Report (2021),” Trees Outside Forests (TOF), including agroforestry, covers 29.38 million hectares, accounting for 8.9% of the country’s geographical area. In 2020, the potential annual timber production from TOFs, including agroforestry, reached 85 million cubic meters, while forest-based wood production was a mere three million cubic meters. ‘In contrast, India imported 15 million cubic meters roundwood equivalent (RWE) of wood and wood products, as highlighted in the paper “Sustainable Trade of Wood and Wood-Based Products in India (2021).’
“Despite having vast land, technology, and manpower resources, only 3% of the total wood availability in India comes from forests. ‘Over the years, as forest departments shifted focus to conservation, timber availability from forests declined. In response, timber imports were liberalized in 1996, resulting in the present import value of INR 50,000 crore for wood and wood products.
A transformative approach is needed. By redirecting resources towards local production, India can eliminate the need for wood imports, channelling foreign exchange spending on wood products back into the domestic economy. This shift will benefit farmers, labourers, traders, industrialists, and contribute to tax revenue, thereby fostering a multiplier effect on the overall economy. Setting an ambitious target of making India a net exporter of wood and wood products by 2047 can serve as a strategic goal, aligning with the nation’s capabilities and potential for sustainable growth. The following action plan is proposed for achieving the vision of 2047.
A. Policy Initiatives
- Creation of a dedicated Wood Development Board under the Ministry of Commerce and Industry(MoCI) to promote the growth of the wood industry.
- Adjustments in the export/import policy to encourage local production of wood and wood products (MoCI).
- Urge to include Furniture and Plywood & Panel Industry in the Production Linked Incentive scheme (MoCI).
- Treat Wood-based Industry on par with the Food Processing Industry (MoCI).
- Encourage both foreign and local industrial groups to invest in the manufacturing of high-quality wood products (MoCI).
- Encourage investments for increasing timber production from forests through public-private partnerships(Ministry of Environment, Forest & Climate Change – MoEFCC).
- Provide incentives to farmers, plantation companies, and industry for the production of medium and large-sized timber, aiming to reduce reliance on imported timber (MoCI).
- Encourage the voluntary certification of wood and wood products (MoCI).
- Enforce MSP for farm wood (Ministry of Agriculture and Farmer Welfare – MoAFW).
- Recognizing wood as a renewable resource, advocate for a reduction in GST on farm wood and wood products (Ministry of Finance – MoF).
- Establish a high-powered committee, comprising MoEFCC, MoAFW, and MoCI, to expedite decision-making processes (Cabinet Secretariat)
B. Agroforestry Initiatives
- Advocate for the liberalization of licensing policy for wood-based industry, particularly those based on farm wood (MoEFCC).
- Propose the exclusion of common tree species from felling and timber transit rules across all states to facilitate cultivation, felling, transport, and usage (MoEFCC).
- Creation of a digital portal for registration of farm plantations to streamline certification and quantify carbon sequestration (MoEFCC).
- Extend incentives, concessions, and facilities available to agricultural crops to tree crops, considering the agricultural status of farm wood (MoAFW).
- Promote collaborative research, extension services, and marketing of tree crops by public sector organizations such as ICFRE, ICAR, and private companies (MoEFCC, MoAFW and MoCI).
C. Physical Targets
- Short Rotation (3-7 yr) Trees (eucalyptus, poplar, casuarina, Melia dubia): 5 million hectares
- Medium Rotation (10-15 yr) (gamhar, kikar) and Large Rotation (15-25 yr) (teak, shisham) Trees: 5 million hectares
- Development and Upgradation of Clusters of Wood-based Units: 300.
- Wood Production:
Wood Production | Volume
(million cubic meters) |
Value
(INR in billion) |
Employment
(million person days) |
Small sized |
102 |
482 |
435 |
Medium &Large sized |
37 |
359 |
191 |
- Increase in Trees Outside Forests:
- From 9% to 12% of geographical area
- Additional Carbon Sink:
- Contribution to Climate Change Adaptation and Mitigation
- Increase in Farmers’ Income
- Fostering Business Growth and Contributing to Tax Revenue and Foreign Exchange
- Alleviating Rural Distress
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