INDIA FARM FORESTRY ADVISORY PROGRAM Impacting farmers and private sector

As India’s economy continues to grow, demand for paper, cardboard and packaging materials is projected to increase. Since companies are prohibited from owning large plots of land, the Pulp and Paper (P&P) industry must source from government forest reserves or private landowners. Promoting farm forestry with marginal and small farmers will help India reduce its carbon footprint, promote rural livlihoods and help underutilized rural lands become productive. Moreover, studies have highlighted issues that are preventing the farmers from maximizing productivity and revenues on one hand and the companies from developing reliable and sustainable supply of raw material on the other. Some of the key constrains identified are Lack of relationships between small farmers, companies and financial institutions; and Unproductive use of land by small holders mainly due to lack of information and knowledge The Indian Farm Forestry Program has been launched by the International Finance Corporation (IFC) in association with four of its investment clients in the pulp and paper sector and Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG). The Program The program is a unique example of collaboration of the pulp and paper industry with marginal and small farmers and has the overall objective to:

Increase tangible benefits from sustainable forestry and productive land use to rural landowners by strengthening relationships with companies;

Manage tree plantations according to international certification standards like Forest Stewardship Council (FSC).

The Components The broad project components are: Formation of Farmer Production Units and Capacity Building Development and Implementation of Farmer Engagement Strategy Development of Small Landowner Group Certification Model based on the “Step Wise

Approach” to FSC Group Forest Management Certificate. The Partners

Andhra Pradesh Paper Mills (now International Paper), Ballarpur Industries Limited (BILT), JK Paper Limited and West Coast Paper Limited are leading pulp and paper manufactures of India. Together they represent ~30% of the industry and ~40% of the farm forestry operations of the pulp and paper sector. IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. It creates opportunity for people to escape poverty and improve their lives. IFC in South Asia has concentrated on low-income, rural, and fragile regions while building infrastructure and assisting public-private-partnerships; supporting agriculture and sustainable forestry; creating growth opportunities for small businesses and increasing access to finance among the underserved amongst other activities. DEG, by contributing funds from the Ministry of Economic Co-operation and Development of the Federal Republic of Germany, wishes to expand development cooperation in partnership with the private sector and supplement private-sector input in order to raise people's living standards in developing countries.