India can unlock agroforestry potential via four key industries: Report

Plywood, paper, furniture and food processing can help India realise the full economic and environmental potential of its Trees Outside Forests sector

The full economic, social and environmental potential of India’s dynamic Trees Outside Forests (TOF) sector, commonly referred to as agroforestry, can be realised by focusing on four critical industries — plywood, paper and pulp, wooden furniture, and pulp and extracts for food processing — according to a report likely to be shared at the first South Asian Agroforestry and Trees Outside Forests Congress.

 

This is because the plywood industry in India is projected to grow at a compound annual growth rate (CAGR) of 6.60 per cent, while the paper and pulp industry is projected to grow at a CAGR of 13.4 per cent.

 

The wooden furniture industry is projected to grow at a CAGR of 6.6 per cent, presenting opportunities for timber aggregators and suppliers, while the pulp and extracts food processing industry — which includes extracts from fruits such as amla and custard apple — is expected to grow at a CAGR of 4.4 per cent.

 

“The rapidly growing ice cream market, with a projected CAGR of 17.23 per cent, provides significant opportunities for custard apple pulp processors,” the report said.

 

Meanwhile, the three-day conference TREESCAPES, beginning February 5, will be held by the Centre for International Forestry Research–International Centre for Research in Agroforestry (CIFOR-ICRAF) in collaboration with the Indian Council of Agricultural Research (ICAR) at the National Agricultural Science Complex (NASC), Pusa campus, New Delhi.

 

The conference aims to establish agroforestry and Trees Outside Forests as mainstream and scalable solutions supporting climate-resilient landscapes, sustainable livelihoods and economic growth across South Asia.

 

It will bring together policymakers, researchers, industry leaders, civil society representatives, farmers and youth from across South Asia to exchange knowledge, showcase best practices, and deliberate on innovative solutions to mainstream and scale AF-TOF systems in the region.

 

With almost 29.38 million hectares documented, the estimated TOF cover in India accounts for 36.4 per cent of the country’s total forest and tree cover.

 

Recent data show that the average annual growth rate of gross value added in forestry rose to 3.96 per cent between 2014–15 and 2023–24, from a negative 0.31 per cent in the previous decade from 2004–05 to 2013–14.

 

The sector’s contribution and growing relevance were recognised in the Union Budget for FY27, with Finance Minister Nirmala Sitharaman assuring support for high-value forestry products such as coconuts, pine nuts, agarwood and sandalwood.

 

Reports show that TOF species such as mango, neem, babool, coconut, palash, teak, ber, eucalyptus, katha and rubber account for around 40 per cent of trees in rural areas.

 

Trees outside forests help relieve pressure on forest resources, conserve farmland, boost agricultural productivity, blunt the harmful impact of urban growth on the environment, increase food, timber and non-timber supplies, and provide income, making valuable contributions to food security.

 

They also provide vital ecosystem services such as clean air and water, habitats for animals and climate regulation. In agricultural landscapes, trees often mark farm boundaries or are planted alongside crops or pastures in agroforestry systems.

 

Studies show that trees on farms often contribute directly to the economy by improving cropland productivity and enhancing the livelihoods of local communities.

 

Fruit-bearing trees and trees planted for fuel and timber provide supplementary food sources and income for rural households.

 

Globally, agroforestry — including boundary plantings — is practised extensively across tropical countries, particularly developing nations, and provides subsistence to more than 900 million people, according to reports.

 

Studies also show that scaling up TOF can help the government meet several national goals and international commitments on environmental protection and climate change mitigation.

 

These include increasing forest and tree cover to 33 per cent of the total geographical area under the National Forest Policy (1988), sequestering an additional 2.5 to 3 billion tonnes of carbon dioxide equivalent under India’s Nationally Determined Contribution to the Paris Agreement (2015), and restoring 26 million hectares of degraded land under the Bonn Challenge.