Farm Forestry and Agroforestry for Paper-Mill Wood Supply
India's paper industry gets most of its wood from farms, not forests. Its industry body says over 90% comes from agroforestry and farm forestry. For a mill, a farmer programme secures future pulpwood while the farmer keeps the income from wood, fruit and crops. New Model Rules notified in June 2025 aim to make registering and felling farm trees simpler.
Where does paper-mill wood come from?
The Indian Paper Manufacturers Association (IPMA) says the industry is "agroforestry / farm forestry based", not forest based.
IPMA puts domestic wood availability at about 9 million tonnes a year against demand of about 11 million tonnes. It says wood costs have risen as a result.
IPMA lists Eucalyptus, Subabul, Casuarina, Acacia and Poplar as the main farm-grown pulpwood species. Mills have worked on clonal saplings for these.
What changed for farm trees in 2025?
On 18 June 2025, MoEFCC notified Model Rules for Felling Trees in Agricultural Lands, Down To Earth reported. The aim is a simpler framework for farm trees and timber.
| Feature | What the Model Rules say |
|---|---|
| Registration | Farmers register on the National Timber Management System (NTMS) with species, sapling numbers, planting date and location |
| Up to 10 trees | Photos uploaded to the portal; a no-objection certificate is issued automatically |
| More than 10 trees | A verifying agency inspects and issues a felling permit |
| Oversight | A state-level committee; Divisional Forest Officers supervise verifying agencies |
| After felling | Photos of stumps are uploaded to the portal |
States adopt and apply these rules in their own way. Check the current position in your state before you promise farmers an easy harvest.
How a mill-linked farm forestry programme works
- Choose farmers and land. Marginal land and field boundaries often suit trees better than prime crop land.
- Agree the model. Block planting, boundary rows, or trees with crops between rows.
- Supply good saplings. Clonal or certified stock suited to the soil and rainfall.
- Support through the gestation years. IPMA says mills hand-hold marginal farmers over a gestation period of 4-5 years.
- Offer a fair buy-back. A clear price formula or market link at harvest.
- Register trees. Use NTMS so felling and transport are smooth later.
Pulpwood-only or mixed agroforestry?
| Model | Good for | Watch out for |
|---|---|---|
| Pulpwood blocks | Steady wood supply to the mill | Long wait for income; single-species risk |
| Boundary rows | Small farmers who keep crops in the field | Shade on crops near the row |
| Mixed agroforestry (fruit, timber, crops) | Year-round farm income and resilience | Needs more planning and extension support |
A CSR team may prefer the mixed model, because farmers earn from fruit before the timber matures. A procurement team may prefer pulpwood blocks. Many companies run both.
Who earns what
The farmer owns the trees and keeps the income from wood, fruit and crops. That is the point of farm forestry.
Carbon is not an income stream for farmers in these programmes, and we never promise one. Any carbon number in a report is the company's estimate.
If the programme is part of CSR, keep it separate from commercial wood purchase. The wood buy-back should be a fair market deal.
How this fits paper company reporting
Farm forestry supports BRSR disclosures on sustainable sourcing and community benefit. See BRSR Principle 6.
It does not change the mill's CCTS emission intensity. Our CCTS guide for paper and textiles explains why.
Risks and how to manage them
| Risk | What it looks like | How to manage it |
|---|---|---|
| Price risk | Wood prices fall at harvest time | A clear price formula agreed at the start |
| Felling and transit delays | Permits slow the harvest | Register trees on NTMS; follow state rules |
| Crop loss from shade | Lower yields near tree rows | Spacing and pruning plans; boundary planting |
| Long wait for income | Farmers drop out in year two or three | Mix fruit trees and intercrops for early income |
| Water stress | Saplings die in the first summer | Drip lines and mulching where possible |
What a CSR or sustainability head should measure
- Number of farmers and area under trees, by village.
- Saplings planted and survival at fixed dates.
- Farmer income from fruit, timber and crops, from farmer records.
- Wood volume sold to the mill, where it applies.
- Training and extension visits delivered.
Report what you measure, and call any carbon figure an estimate. Keep commercial wood purchase separate from CSR spend.
How Grow Billion Trees helps
We run farmer agroforestry near plants and mills: farmer selection, saplings, planting, three years of care and geo-tagged records on GreenTrack. Our mixed models aim for up to 3× farm income compared with conventional two-crop farming. Programmes are priced per project after a site survey; see our chemicals, paper and textiles page.
Further reading: Tree Felling Rules on Farmland: What Farmers and Companies Need to Know · CCTS for Chlor-Alkali, Paper and Textiles: What Plantation Can Do
Frequently Asked Questions
How much of the paper industry's wood comes from farms?
IPMA, the industry body, says over 90% of wood demand is sourced from industry-driven agroforestry and farm forestry.
Which species do farmers grow for paper mills?
IPMA names Eucalyptus, Subabul, Casuarina, Acacia and Poplar as common farm-grown pulpwood species.
Do farmers need permission to fell trees on their own land?
It depends on the state and species. The June 2025 Model Rules offer a portal-based route, with automatic NOCs for up to 10 trees.
Is there a carbon payment to farmers?
No. Farmers keep the income from wood, fruit and crops. Carbon is not an income stream in these programmes.
Can a farm forestry programme be CSR?
A voluntary programme for farmers can fit Schedule VII. Keep any commercial wood purchase separate. See our checklist.
Does farm forestry reduce our mill's CCTS target?
No. CCTS measures emissions per tonne of product at the mill. Trees on farms do not change that figure.
Sources: Indian Paper Manufacturers Association: Agro forestry · Down To Earth: Model Rules for felling trees in agricultural lands (2025). Last updated: October 2026. Rules change; check the latest notification before you rely on any detail.
Keep reading
Tree Felling Rules on Farmland: What Farmers and Companies Need to Know
CCTS for Chlor-Alkali, Paper and Textiles: What Plantation Can Do
Plantation and community programmes around solar and wind parks
Aluminium smelters and CCTS: what plantation can and cannot do
Community agroforestry and CSR around mines
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