Budget Push for Tree Farming Can Cut Wood Imports and Build Resilient Rural Livelihoods

by Mr. Manoj Dabas – Country Head, CIFOR-ICRAF.

“We expect the honorable FM to focus on making tree farming (agroforestry) predictable and financially rewarding by investing in high-quality planting material, regulating nurseries, and strengthening extension services. This will go a long way not only to restrict imports of wood (and wood-based products) in production of which the country has an inherent natural advantage in producing. Imports of wood cost India 7 billion USD per year, rising at a CAGR of ~15%. Farmers currently take the risk of poor saplings and uncertain outcomes, which discourages them from long-term tree cultivation. A National Agroforestry Mission that offers affordable credit, insurance, and market linkage can transform trees into a stable income asset for rural households. Rectifying tax and duty structures that bring disadvantage to the domestic producers will further incentivize plantations. Addressing the wood deficit would not only address the concern about import substitution but would also help India build resilient rural economies and provide long-term livelihood security.”

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