Paper Industry invests in contract farming

Details

Category: Industry Overview

Paper industry, which faces difficulty in getting wood pulp has started to induce farmers to take contract farming. Now every farmer, who plants eucalyputus , acacia or sabaul will get Rs.15000 per acre. The agreements are done to benefit the farmers, either they get market price for wood pulp or as per the contract price or whichever is higher. The industry also provides assistance in lending or coax banks to lend, as most plantations take 4 years to yield. Expected demand for paper is to go up from 8.0 million tonnes to 11.5 million tonnes by 2010.

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