ITC’s Paper Business creates large scale afforestation to develop local value chain

ITC's Paperboards & Specialty Papers Division of the diversified ITC has taken to large scale afforestation to develop a local value chain involving the farming community.

Highlighting various initiatives of the paper Division, ITC has expressed the need to encourage domestic paper sector value chain and called for some policy changes to boost the local industry.

Making certain recommendations, Vadiraj Kulkarni, Chief Operating Officer of ITC Paperboards & Speacility Business said “India imports $ 6.8 billion worth of wood and wood-based products. In order to encourage an indigenous value chain based paper industry, ITC believes Customs Duty on wood imports needs to be raised to 10%, as the current rate of 5 % (nil from ASEAN countries under preferential agreements) discourages investment in agro-forestry in India.”

“It would be also desirable to extend to agro-forestry all the benefits applicable to agriculture including unrestricted movement of such produce. In order to support farmer investment, institutional credit needs to be provided in the form of long term loans, depending on the species being planted,” it stated.

In line with the Government’s Make in India philosophy, it is necessary to encourage production of more hard wood pulps in India. And it is also desirable to “Bring model Contract Farming Act” in all the states, to enable consolidation, scaling up and mechanisation of block plantation in agro forestry. Encouragement is also needed to facilitate research work in the area of genetic improvement of planting stock of most used tree species in agroforestry practices of different agro-ecological zones.”

ITC has invested significantly over the years in a pulp mill, paperboard machines, power plant and new technologies. The pulp mill at Bhadrachalam utilises pulpwood that is sustainably grown in the country. It not only substitutes imported pulp but also enables offtake of produce from local tribals and farmers, thereby enhancing their incomes.

Augmenting its capacity to 7 lakh tonnes, ITC’s Paperboards Unit at Bhadrachalam not only carries the products to shelves globally but also enables value addition of key FMCG brands in the country.

To reduce dependence on specialised imported pulp which earlier could not be produced in the country, ITC has invested in a first-of-its-kind Bleached Chemi-Thermo Mechanical Pulp (BCTMP) Plant at Bhadrachalam with a production capacity of 100,000 tonnes per annum has enabled the Company to substitute imported pulp.

ITC has implemented a large scale afforestation programme, which has created a green cover over 7,20,000 acres, covering more than 2.4 lac farmers in almost 10 states of the country. In this green journey over last 20 years, over 1.3 billion high quality saplings have been planted and nearly 130 million person-days of livelihood have been generated, benefitting over 2 lakh farmers.

ITC is taking several measures to facilitate fair prices to farmers growing pulp wood plantation by spearheading measures to streamline and strengthen critical aspects of pulpwood procurement including payment.