India’s Paper Industry Push for Easing Forest Rules

Syllabus: GS2/ Governance, GS3/ Environment

Context

  • The Union Ministry of Environment, Forests and Climate Change (MoEF&CC) notified amendments to the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 2023, formerly the Forest Conservation Act, 1980.

Background

  • According to 2023 guidelines forest land leased for commercial purposes attracted:
    • Net Present Value (NPV) payments: A one-time charge reflecting the economic value of ecosystem services lost due to diversion of forest land.
    • Compensatory Afforestation (CA) obligations: Mandatory afforestation undertaken to compensate for diverted forest land.
  • Plantation of medicinal plants was treated as a non-forest activity, requiring prior Union approval.

What are the New Rules?

  • Commercial plantations are now legally classified as “forestry activities” under the amended Van (Sanrakshan Evam Samvadhan) Adhiniyam, 2023.
  • Exemption from Levies: Entities undertaking these plantations are no longer required to pay Net Present Value (NPV) or undertake mandatory compensatory afforestation.
  • Simplified Approvals: Plantations that align with state-approved “Working Plans” and are supervised by forest departments do not require prior central government approval.
  • Leasing to Private Entities: The central government can specify terms and conditions for leasing forest land to private companies for plantation purposes.

Why the Paper Industry Pushed for Easing Norms?

  • Domestic wood availability in India is estimated at around nine million tonnes per year.
    • Current demand stands at approximately eleven million tonnes per year, impacting domestic paper production and increased input costs.
  • Rising Dependence on Imports: Despite being the third-largest paper producer globally, India’s imports of paper have increased sharply particularly from ASEAN countries.
  • Underutilised Capacity in the Paper Sector: India has around 900 pulp and paper mills, of which only about 550 are operational.
    • The inadequate access to raw materials has prevented mills from operating at optimal capacity.

Environmental Concerns

  • Environmental groups caution that;
    • Commercial plantations may not replicate the ecological functions of natural forests.
    • Monoculture plantations can adversely affect biodiversity, soil health and water availability.
  • The amendment raises questions about the balance between ease of doing business and ecological safeguards.
India’s Paper Industry
– India’s Paper Industry accounts for about 5% of the world’s production of paper.
– The mills use a variety of raw material viz. wood, bamboo, recovered paper, bagasse, wheat straw, etc. 
a. In terms of share in total production, approximately 18-20% is based on wood, 74-76% on recycled fibre and 6-8% on agro-residue.
Over 90 percent of wood is currently sourced from agroforestry and farm forestry, not from natural forests.
– Approximately 500,000 farmers are engaged in growing plantation species such as eucalyptus, poplar, subabul, casuarina and acacia across about 1.2 million hectares.

Way Ahead

  • Commercial plantations should be restricted to degraded and open forest lands, avoiding ecologically sensitive areas.
  • Strong monitoring and ecological safeguards are needed to prevent monoculture-driven environmental harm.
  • Agroforestry and recycled fibre use should be further promoted to reduce pressure on forest land.

Source: DTE

 
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