India should shift 5% of area under cereal cultivation  to agro-forestry, says Century Ply chief

The Indian government should shift 5 per cent of the land under cereal cultivation to agro-forestry through incentives to help farmers earn higher income to emerge as a significant player in the global wood market, says Sajjan Bhajanka, Chairman, Century Plywoods. 

“At least 60 per cent of the population in involved in agriculture and it serves only 16 per cent of the people in the country. That’s why we see farmers still languishing economically. If the Centre shifts 5 per cent of the land under cereals to agro-forestry, it can usher in a huge change in the rural and farmers’ economy,” Bhajanka told businessline in an online interaction.

Shifting will result in curbing the surplus in cash crops and creating a better demand-supply balance. While this will ensure farmers get a higher income, the 5 per cent of diversion to agro-forestry will be a bonus for growers, he said. 

Lead to turnaround

“A lower surplus of cash crops and increased plantation timber revenue will result in a turnaround in the farm sector,” said the Chairman of Century Plywoods, which launched operations in 1986.

At least 140 million hectares (mh) of land is under cultivation and if 5 per cent is allocated for agri-forestry, some 7 mh of land can be used for timber wood forestry.  

“Over the next 10 years 222 million cubic metres (mcm) of land can be generated annually from the shift of which 110 mcm can be used for wood-based products such as plywood, medium density fibreboard (MDF), and particle boards,” Bhajanka said. 

Currently, the country’s per capita forest areas is 0.05 mh against 0.52 mh of per capital global forest area, while productivity is one-third of the global yield of 2.1 cubic metres per hectare per year. 

“China’s log production is 352 mcm compared with India’s 88 mcm resulting in Beijing enjoying a 75 per cent share in the plywood market,” he said. 

Sectoral problems

There is no regulatory framework for nursery development and financial assistance to agro-forestry activities. Wood grown on farms is not defined as “farm produce” resulting in transport and ownership problems.

Farmers need a pricey “certificate of origin” to transport or trade in the wood produced on their own lands and the Indian Forest Act says any species of tree grown on a farmer’s land becomes a timber when felled.

India would require to increase its wood production by 112 mcm to meet the rising demand over the next 10 years and the Centre must form a “National Wood Council” for function as a nodal agency for wood-based products. 

Bhajanka said: “The council should ensure convergence of sectoral and inter-ministerial assistance besides easing regultory requirements.”

India should develop a “Timber Policy” with a separate legal framework and form an agreement between growers, user companies and state forest departments. 

Arrangements should be made to ensure sustainable certifiable raw material for wood and create an electronic platform. “Such steps will ensure new jobs for 2-2.5 million people and make India self-reliant in meeting the demand for wood, besides exporting it. It will be a GDP multiplier,” he said.

Besides, it will have ecological benefits from the timber value chain and it is possible to increase the value of wood by $150 billion through value-addition.

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