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BREAKING BARRIERS FOR A&R PROJECTS IN AGROFORESTRY PowerPoint Presentation
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BREAKING BARRIERS FOR A&R PROJECTS IN AGROFORESTRY

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  1. BREAKING BARRIERS FOR A&R PROJECTS IN AGROFORESTRY R C DHIMAN WIMCO SEEDLINGS LTD. KASHIPUR ROAD, RUDRAPUR, UA

  2. POTENTIAL LAND AVAILABILITY FOR A&R PROJECTS • GOVERNMENT LAND • COMMUNITY LAND • FARM LAND

  3. GOVERNMENT LAND • VAST POTENTIAL AREA FOR A&R PROJECTS • PRESENTLY SUPPLYING 3 M.CUM OUT OF 60 M.CUM TIMBER CONSUMPTION • STATUS OF FOREST COVER AND G.S.(?) • YEAR GS AGB F. AREA (M3/HA) (T/HA) (HA) • 1990 47 93 63732000 • 2000 43 73 64113000

  4. GOVERNMENTAL DEPTT. • MAJOR LAND FOREST RESOURCES WITH THE GOVERNEMNT • WELL ORGANISED FOREST DEPTT. • LAW AND ORDER IMPLEMENTING AGENCY

  5. GOVERNMENTAL DEPTT. • UNCOMFIRTABLY PLACED IN PROTECTING AND MAINTAINING THE FOREST AND LAND RESOURCES • BUILT UP OF CARBON STOCKS VERY SLOW • ADEQUATE INVESTMENTS IN DEVELOPING CARBON STOCK/FORESTS NOT AVAILABLE

  6. COMMUNITY LAND • JFM OR PFM IN 27 STATES • ELIGIBILITY OF JFM OR PFM FOR FORESTRY MITIGATION PROJECTS-? • HIGHLY DEGRADED LAND • HIGH BIOTIC PRESSURE

  7. LIMITATIONS OF THE INDUSTRY • UNAVAILABILITY OF LAND • LOW COMMITMENTS IN WOOD PRODUCTION • BUSINESS POTENTIAL IN CARBON TRADING UNCERTAIN IN THE LONGER RUN • WOOD BASED INDUSTRY SHOWING POOR GROWTH • NO MORE COMMITED WOOD SUPPLIES

  8. POTENTIAL OF INDUSTRY • INVESTMENT POTENTIAL • MAJOR USER OF THE TIMBER • CERTIFICATION OF RAW MATERIAL PRODUCTION • SOCIAL COMMITMENTS • BUSINESS PROMOTION

  9. BUSINESS OPPERTUNITY • NO • LAND AVAILABILITY ? • EXPECTED ANNUAL REVENUE FROM A&R PROJECTS • 2.5 MILLION US$ (12.5 CRORES) (Gera 2005). • This is based on the assumption that India capture 10% of the world market.

  10. BUSINESS OPPORTUNITY… • GROWING TIMBER IS BECOMING COSTLY • UNCERTAINITIES IN CARBON PRICE AND TRADING • OVERHEAD COSTS, TRANSACTION COSTS ETC.. • CARBON BENEFITS: • US$10/TC=Rs 450 for 2t dry wood or 4t fresh wood or 40 qtl fresh wood=Rs 11/qtl wood

  11. FARM LAND • VERY HIGH POTENTIAL IN PRODUCTIVE FORESTRY C STOCKS & SINKS • MAJOR SOURCE OF WOOD AVAILBILITY • GROWING TREES MARKET DRIVEN • BENEFITS FROM CARBON CREDITS - ? • TRANSACTION COSTS, STRUCTURE ETC..? • METHODOLOGY, SECTORAL SYNERGY..?

  12. A CASE STUDY OF POPLAR • HIGHLY PRODUCTIVE PLANTATIONS • 20 MILLION TREES PLANTED ANNUALLY PRODCUING 100 M. T WOOD AND CONSERVING 25 MTC ANNUALLY VALUED AT 250US$ • VALUE OF WOOD =1000M.US$. • POPLAR BASED AF NEEDS JUST 93 TREES(8 YRS) TO MAKE 30% CROWN COVER AND 372 IN 2ND YEAR, 227 IN 3YRS, 154 IN 4 YRS, 126 IN 5 YRS, 113 IN 6 YRS, AND 106 IN 7 YRS. • ALL PARTS COMMERCIALLY USED

  13. CROWN COVER IN POPLAR

  14. SUGARCANE GROWN WITH POLAR-FIRST YEAR

  15. BARRIERS-METHODLOGIES • “CARBON IN FORESTRY PROJECTS MUST BE MONITORED IN ORDER TO REALIZE CREDITS” (FAO 2005) • FARM PLANTATIONS ARE EXTENSIVELY STUDIED AND DOCUMENTED, YET METHODOLOGIES MAY HAVE LIMITATIONS • THEIR GROWING IN UNORGANISED SECTOR • GROWING ON FRAGMENTED PLOTS • GROWING IN ASSORTED PATTERNS AND DESIGNS • GROWING FOR DIFFERENT DURATIONS • MULTIDURATION CROPS • SIZE/UNIT

  16. …..BARRIERS-DEFINITION • PARAMETERS DEFINED..0.5 HA, 5 MT HT AND 30% CROWN COVER • QUALIFICATION OF AGROFORESTRY IN A&R PROJECTS AT INTERNATIONAL LEVEL (?)

  17. ….BARRIERS-OTHERS • TRANSACTION COSTS • ORGANISATIONALLY VERY WEEK • CONFLICT RESOLUTIONS • GOVERNMENTAL POLICIES • MARKET EXPLOITATIONS • MARKET FLUCTUATIONS • COMPETITION WITH OTHER HIGH VALUE CROPS • LACK OF AWARENESS

  18. BREAKING BARRIERS • EFFORTS TO RECOGNISE AF UNDER THE DEFINITION OF FOREST • CREAT ORGANISATIONAL STRUCTURE • DEVELOP LINKAGES WITH ENERGY PROJECTS AND UTILISATION BASE • DEVELOP MECHNISM OF CONFLICT RESOLUTION • PROVIDE GUARANTEE

  19. CONCLUSIONS • A NEW EXPERIENCE • UNCERTAINITIES IN FUTURE CARBON COSTS, METHODOLOGIES AND TRANSACTION COSTS • BENEFITS FROM CARBON CREDITS - ? • US$10/TC=Rs 450 for 2t dry wood or 4t fresh wood or 40 qtl fresh wood=Rs 11/qtl wood • INDUSTRY PROACTIVE ON A&R PROJECTS • ESTABLISH LINKAGES BETWEEN A&R AND ENERGY PROJECTS

  20. THANKS