Industrial Agroforestry—A Sustainable Value Chain Innovation through a Consortium Approach

Abstract

Agroforestry has been practicedtraditionally in India in the form of subsistence farming, but is being increasingly recognized from the economic point of view, in addition to its positive contribution to the wood-based industrial sector, which has recent origin. Low forest cover, poor productivity and legal restrictions coupled with an increasing demand for wood and wood products due to increasing population, industries and associated policy changes have ushered in a total mismatch between demand and supply. This has attracted increasing attention towards agroforestry. The National Forest Policy of India 1988 has directed all wood-based industries to generate their own raw material resources by linking farmers and extending technology and market support. However, these directives were not taken seriously, and consequently, the achievements that should have taken place in industrial agroforestry and plantation establishment are dismally modest for want of suitable institutional mechanism to resolve the research gaps that exist in the entire Production to Consumption System (PCS). Against this backdrop, Tamil Nadu Agricultural University (TNAU) has pioneered research by creating a value chain in industrial agroforestry which was initially demonstrated in 200 ha of farmlands through technological, organizational and marketing interventions. Incorporationof high yielding short rotation (HYSR) clones, precision silviculture technology, adoption of multifunctional agroforestry and value addition technology are the major technological interventions that attracted more farmers towards agroforestry development. Conceptualization and successful practice of the contract tree farming model, particularly the quadripartite contract farming model, ensured institutional linkage among the value chain players and facilitated technology transfer, assured buy back, price support system and also institutional credit and insurance. The provision of a market support system for a wide range of pulp wood, plywood, timber, and match wood exerted a significant influence among tree-growing farmers. In order to sustain these value chain innovations and interventions, an institutional mechanism, namely the Consortium of Industrial Agroforestry (CIAF), was established in 2015, which linked all value chain players and aided in resolving the issues in the entire production to consumption system (PCS) of agroforestry on a sustainable basis. Over the years, these innovative interventions have had a significant impact in terms of area increase, productivity and profitability improvement coupled with safeguarding the social and environmental concerns of agroforestry farmers from a holistic perspective. The Consortium-based Value Chain on Industrial Agroforestry model has a very good replication potential not only within India, but also elsewhere across the global landscape.