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Bamboo Promotion Action Plan for NER

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Bamboo Promotion Action Plan for NER

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DRAFT REPORT

Action Plan for Promotion of Bamboo in the North Eastern Region

ACTION PLAN FOR PROMOTION OF BAMBOO IN NER

DRAFT REPORT

Submitted to
Ministry of Development of the North Eastern Region
Government of India

North Eastern Development Finance Corporation Ltd.

December 2020

North Eastern Development Finance Corporation Ltd. 1


EXECUTIVE SUMMARY

TITLE OF THE STUDY


ACTION PLAN FOR PROMOTION OF BAMBOO IN NER

EXECUTIVE SUMMARY

Bamboo is one of the most versatile plant species in the world. It has a wide variety of uses in
today’s world. In North Eastern India, local communities have traditionally used bamboo
throughout their lives
- from cutting the umbilical cord of new born babies to carrying the dead on their final
journey. While it had been eclipsed by other materials after the advent of modernity, bamboo
is enjoying a renaissance globally. Nearly two-fifths of the bamboo stock of India is
concentrated in the North Eastern (NE) Region of the country. But, the contribution of
bamboo towards the economic development of the NE states of India remains subdued.

In July 2020, the Hon’ble Prime Minister of India highlighted the potential of value addition
to bamboo in the NE states, which could contribute to the on-going national initiatives for an
Aatmanirbhar Bharat (self-reliant India) by replacing imports with local production. Further,
he suggested that bamboo centred initiatives could help to boost the incomes of people in
these states. Bamboo can play an important role in making a self-reliant India through
reduction of import in several product categories such as timber, stick, fibre, charcoal etc.
Therefore, it is the need of the hour to explore more impactful initiatives in order to address
the gap in the existing bamboo ecosystem above and over the existing initiatives. As an
outcome of the above vision, the Ministry of Development of North Eastern Region
(DONER), Government of India in October, 2020 assigned the work of undertaking the
‘Preparation of an Action Plan for the Promotion of Bamboo in the North Eastern Region’ to
the North Eastern Development Finance Corporation Ltd. (NEDFi) in association with North
Eastern Council (NEC).

The potential role of bamboo in North Eastern economy has also been highlighted in several
policy documents and forums such as North East Vision Document 2020, NITI Aayog etc.
This Action plan also aims to address the critical issues highlighted in such policy documents
and forums.

Terms of Reference: The approved Terms of Reference of the present assignment are as
follows:
(a) To assess the current status of the bamboo sector of NE region(NER) through
stakeholders’ consultation on challenges, prospects and recommendations for development
and promotion of the sector; (b) To identify priority areas for intervention with its
implementation strategy; and (c) To develop a 5-year holistic action plan including state(s)
specific sub-plans, implementation mechanism, fund requirement, convergence with existing
scheme/mission and formulation of new scheme if required. The Scope of Work has been
furnished at Appendix-2 of the report. This covers the above Terms of Reference in detail.

1. Current Status of Bamboo Development

Global Market Size: The global bamboo and bamboo products market size is about $ 72.1
billion (2019) and it is projected to reach $98.3 billion by 2025, after growing by about 5%
per annum in the intervening years (Grand View Research). The robust growth of bamboo
based markets is expected on account of factors like growing infrastructural development and
the use of sustainable resources (like bamboo) in the manufacture of furniture and industrial
products across the world. China is the leading nation in the production of bamboo and
bamboo based items.

Market Segments: Chapter-2 gives the major segments of the global bamboo market as
estimated by various organizations. It may be noted that the segments covering bamboo use
for (a) pulp and paper, and (b) construction may account for over 70% of the global
market. The other segments (industrial use, crafts, food use etc.) may be about $ 20-22
billion in size (in 2019. Of this, it has been estimated that non-traditional items like laminated
furniture, flooring, panels etc. constitute over 45% (in 2017), while traditional products like
handicrafts, traditional furniture, bamboo shoots, chopsticks and blinds will form the balance.
It has been projected that the demand for bamboo for industrial use will grow more rapidly in
the next few years as compared to its use for handicraft or food use.
International Trade: International trade remains a small part of the global output, as most of
the output in the producing nations is sold in the domestic markets. The major exporters
include China, European Union (EU), Indonesia, Vietnam, the USA, the Philippines and
Thailand. The global trade of highly processed bamboo goods is growing, and these items
(like flooring, panels, claddings, other highly processed industrial products, bamboo fibre etc.)
constitute an ever-growing share of the global trade. However, traditional products are also
being traded such as furniture and woven items. In fact, with $ 380 million in exports, woven
bamboo products still made the largest traded item in 2017 accounting for 21% of global
exports (INBAR).

National Status: While it grows naturally almost throughout India except in the Kashmir
region, bamboo occurs in abundance in the deciduous and semi-evergreen forests of the
North Easternregion of the country and the tropical moist deciduous forests of Northern and
Southern India. As per the India State of Forest Report (ISFR) 2019, an area of 160,037 km2
has been described as ‘bamboobearing areas’.

In India, the demand for bamboo is estimated to be about 27 million MT, as reported by the
National Cooperative Housing Federation of India’s NCHF Bulletin in July 2017. This is
needed for consumption by a range of users like the pulp and paper industry, construction
sector, cottage industry and handlooms, food usage (bamboo shoots), fuel (charcoal), fodder
(bamboo leaves) and medicines. As per the National Bamboo Mission, the annual harvest of
bamboo is about 14.6 million MT (Operational Guidelines of NBM, revised in June 2019).

The bamboo market in India is estimated to be about Rs 23,942 crore (2019). There is no
comprehensive data on India’s bamboo market, as much of it is based on trade on an
unorganized basis. The accurate estimation of bamboo export and import figures of India is
difficult, as many of thebamboo products are internationally traded under same HSN code of
timber. Data from few of the bamboo specific trade portals reveals that export figure of India
in FY 2019-20 was USD 106 million and import figure stood at USD 170.39 million.

As per official records, India imported Rs. 290.07 crore of bamboo items in 2018-19 and Rs.
560.27 crore in 2019-20, which represented a surge of over 93% in the bamboo-based imports.
India’s exports have reduced by over 9% from Rs. 500.21 crore to Rs. 454.1 crore.

Regional Status: The North Eastern states of India account for about one-third of India’s area
under bamboo, as well as 38% of the total bamboo stock of the country. Some of these states
have skilled artisans who are very skilled at working on bamboo based crafts. The availability
of bamboo culms in the states of the NE Region has supported its use for diverse household
purposes (utility items, furniture, tools etc.), application in bamboo-based crafts,
construction of shelter and erection offencing, use in farming etc. Further, analysis of the
Forest Survey of India reveals that the region has limited “out of forest” bamboo stock which
is harvestable. Also, with its wide use at the household level and sale in local markets, it has
been reported that a significant proportion of the bamboo resources in the NE states have not
been tapped adequately. So far, there have been low levels of investment in bamboo based
industrial units in the NE Region.
2. Existing National Initiatives

India is the world’s second largest cultivator of bamboo after China, with 136 species and 23
genera spread over 13.96 million hectares. However, the country’s share in the global bamboo
trade and commerce is only 4.5%. This is despite some noteworthy initiatives taken in the
past in order to develop the bamboo sector in India. The Planning Commission had prepared a
report on National Mission on Bamboo Technology and Trade Development (NMBTTD),
which was presented to the Hon’ble Prime Minister in July, 2003. Accordingly, the Planning
Commission allocated Rs, 2,600 crorefor bamboo under the 10th Five Year Plan.

In October 2006, the Government of India (GOI) had launched the National Bamboo
Mission (NBM) on the basis of the National Mission on Bamboo Technology and Trade
Development Report, 2003. The NBM’s key objective was to address issues relating to the
development of the bamboo industry inthe country, provide a new impetus and direction and
enable the realisation of India’s considerable potential in bamboo production. The Mission
was largely limited to propagation and cultivation of bamboo, with limited investment in
seasoning and treatment units and bamboo bazaars. The main weakness of the scheme had
been the absence of a linkage between the producers (farmers) and theindustry and a strong
value addition component and also weak efforts in organizing bamboo farmers for
aggregation through institutions such as cooperatives, SHGs, JLGs etc.

The National Bamboo Mission (NBM) was restructured in 2018. The Mission was launched
as a natural corollary of the historic amendment of the Indian Forest Act in 2017, removing
bamboo from the definition of trees. The main objective of the above Mission is to expand the
area under bamboo plantation in non-forest Government and private lands in order to
supplement farm incomes and contribute towards resilience to climate change as well as
availability of quality raw material requirements of industries. In addition, the NBM has
sought to address other aspects like post-harvestmanagement, product development, industries,
skills development, and import reduction.
Challenges & Action Points for Bamboo Development in NE Region: The major emphasis
of the existing initiatives appears to be upon the plantation of bamboo. The other aspects
seem to be receiving less importance, especially a focus on market driven value addition.
NBM has focussed upon 10 species of bamboos. However, there is a need to explore the
commercial potential of all the other 128 species of bamboo available in India, as the
introduction of new species into an area maybe more challenging than the utilization of the
existing bamboos. The manufacture of incense sticks is an important activity in India.
However, there is a considerable generation of wastes. Much of the bamboo culm is wasted
while making bamboo sticks for use by agarbatti units. Activated bamboo charcoal may offer
a way out. Other value added items may need to be developed to make fuller use of the
bamboo raw materials, including wastes.
The bamboo sector of NER lacks reliable data on raw material and trade intelligence and has
witnessed limited research and development with industrial application, inadequate credit
linkage,lack of high value added product etc.

Much of the bamboo resources are located in remote areas that are not served by any roads.
The sustainable extraction of bamboos (including replanting of utilized areas) is not possible
in such a scenario. The other issues which confront the implementation of Government
funded initiatives for bamboo development include: Multiplicity of institutions with
overlapping mandates in the bamboo sector in NE India; late release of funding; as reported
by State Bamboo Missions is impacting planting and other activities; and limited capacities
at the state and district levels, especially with regard to bamboo trade and economics;
technological innovations and manufacturing of bamboo products.

The following are the major points for any Action Plan for bamboo development in the NE
Region: adoption of a market driven orientation; utilization of the full range of bamboos, with
preference to the locally available species; research and development; Value Addition to the
existing products; addressing the Logistic challenges; capacity Development of Implementing
Agencies; and direct Funding supplemented by active Monitoring. The above have emerged
from an analysis of the existing challenges as discussed in this section. The present action
plan will adopt the above pointsas its guiding axioms while developing the implementation
strategies.

Other Recent Initiative: Another major bamboo initiative in North East is Assam Bio-
Refinery- the first bamboo based bio-ethanol plant of NER. The unit is expected to consume 5
Lakh MT bamboo. Considering the low volume of “out of forest” bamboo in the region, the
unit should look up for other channel of raw materials such as collaboration with State Forest
Department for natural stock and own high yield captive plantation can be two options which
the unit may explore.

3. Policy & Regulatory Framework

Policy Framework: India does not have a National Bamboo Policy, despite the need for such
an overarching document to guide the various agencies working for bamboo development in
the country. However, the National Agro-forestry Policy had been announced in 2014. It
seeks to support agro- forestry, which has been defined as a land use system which integrates
trees and shrubs on farmlands and rural landscapes to enhance productivity, profitability,
diversity and ecosystem sustainability. The above policy intends to encourage and expand tree
plantation in an integrated manner with crops and livestock to improve productivity,
employment, income and livelihoods of rural households.

As mentioned previously, the Government of India has launched a restructured National


Bamboo Mission (NBM) in 2018, with its basic objectives being to increase the area under
bamboo plantation in non-forest Government and private lands to supplement farm income
and contribute towards resilience to climate change as well as availability of quality raw
material requirements of industries.

Some of the NE Region have brought out State Bamboo Policies to promote bamboo (and
other related items). These include Assam, Manipur (with the policy being at the draft
stage), Nagaland,and Tripura. The salient points of the above state level policies have been
furnished at Chapter-4. In addition bamboo finds mention in the Socio-Economic
Development Policy 2019 of Mizoram. In addition, the matter of bamboo development has
found mention in some of the other policies of the State Governments of the NE Region.
These have been briefly mentioned in the above chapter.

Legal & Regulatory Framework for Bamboo in India & the NE Region: As per the
Constitution of India, ‘Forest’ is a subject under the concurrent list. Thus, both the Central
Government and State Government can enact legislation on the subject, with the acts of the
former having precedence in case of any conflict. In India, bamboo is primarily found in
forests, whereby it is classified as a forest produce. Hence, it is subject to both Central and
State laws.

The Indian Forest Act, 1927 had interpreted ‘tree’ to include bamboo. This meant that the
felling of bamboo grown anywhere in the country was subject to restrictions applicable to
‘timber’. The act not only constricted the livelihoods of forest communities, but restricted
private growers too. In 2017, Section 2 (7) of the Indian Forest Act was amended to exempt
bamboo grown in non-forest areas from the definition of ‘tree’. Thereby, any bamboo grown
in private or homestead land no longer requires a felling permission or transit permission
from any State Forest Department. However, bamboo grown in forest lands will continue to
be classified as tree and legal restrictions on cutting andtransport of bamboo from such forest
lands remain.
Under The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest
Rights) Act, 2006, popularly known as the Forests Rights Act (FRA), bamboo has been
classified as a minor forest produce (MFP). This Act recognizes and vests individual forest-
dwellers with forest rights to live in and cultivate forest land that was occupied before 13
December 2005 and grants community forest rights to manage, protect and regenerate the
forest under section 3(1)(i), and to own and dispose minor forest products from forests where
they had traditional access.

As per Schedule VI of the Constitution of India, tribal communities inhabiting areas in some
states of the NE Region, designated as autonomous districts, were granted special provisions
for the protection of their traditional rights. Autonomous District Councils (ADCs) were
established in such areas with powers over land and other resources including forests -
excluding Reserved Forests (RF), Proposed Reserve Forests (PRFs) and Protected Area
Network (PAN). Thus, under the FRA, 2006 as well as the powers vested with the ADCs,
bamboo grown in forests (not being RF, PRF or PAN) can be utilized without any constraint.
These forests are usually termed as Un-classified Forests or as Un- classified State Forests
(USF) in the hill states of the NE Region. The de-facto control over such forests is exercised
by the traditional authority.

4. Stakeholders’ Discussions

International level organizations such as World Bamboo Organization (WBO), International


Bamboo and Rattan Organization (INBAR), Japan International Cooperation Agency (JICA)
are working for Indian bamboo sector. Nationally, there are numbers of central ministries and
agencies which are further supported by research institutions such as NID Ahmedabad,
Bengaluru & Jorhat, NIFT Shillong, Indian Institutes of Packaging Mumbai & Kolkata Indian
Institute of Plywood Research and Training; IIT Guwahati, National Institute of Natural Fibre
and Engineering Technology, Kolkata etc.

North East based stakeholder institutions are North East Cane and Bamboo Development
Council (NECBDC), Rain Forest Research Institute (RFRI), Jorhat and its Advanced
Research Centre for Bamboo and Rattan (ARCBR), Bamboo and Cane Development Institute
(BCDI), Tripura Bamboo and Cane Centre (TRIBAC), North Eastern Space Application
Centre,(NESAC), IITG Guwahati, North East Handicraft and Handloom Development
Corporation (NEHHDC), North East Centre for Technology Application and Research
(NECTAR) Indian Institute of Entrepreneurship (IIE), Bamboo Technology Park, Chaygaon,
Kamrup, Assam, Bamboo Industrial Park, Dima Hasao, Assam, Numaligarh Refinery Limited
(NRL) etc.

At state level there are- Department of Industries and Commerce, Department of Horticulture,
Department of Soil Conservation State Rural Livelihood Missions State Bamboo
Development Agency State Handloom and Handicraft Development Corporations and the
Autonomous District Councils etc.

A large number of stakeholders’ consultations were organized (15 in all) as a part of the
assignment. The stakeholders included participants from the Government, Entrepreneurs,
Crafts Clusters, Institutions and Banks. The following summarizes the feedback received
from the stakeholders. The details are available at Appendix-3. In addition, Appendix- gives
the details of these stakeholders.

Government
Discussions were held with the senior officials of the National Bamboo Mission (NBM).
They gave a background of their work, and the progress achieved till date. In addition, they
furnished some suggestions for the bamboo sector of the NE Region, as well as their plans for
the sector on a national basis.
Officers from the State Bamboo Missions of five states (Assam, Meghalaya, Mizoram,
Nagaland, and Tripura) joined discussions organized on two separate occasions. They gave
account of the progress of bamboo in their states, as well as the various interventions being
undertaken for the sector in collaboration with various stakeholders along with
implementation challenges.

Entrepreneurs & Industries


There were consultations with industrial units and entrepreneurs involved in the bamboo
sector. These stakeholders gave their feedback on the issues challenging bamboo
development across the value chain. These included issues with raw materials (in terms of
quality and volumes), technology (need to upgrade tools and equipment), inadequate
financing, logistics (high costs of transport), and market development. As many bamboo
items were a novelty (tiles, panels, laminated furniture etc.), consumer confidence and tastes
will take time to develop. The efforts of institutions and government initiatives need to reach
the entrepreneurs, who are working for bamboo development.

Banks & Financial Institutions


Banks were of the opinion that currently there is limited high value bamboo products and they
are manufactured mostly in the micro and small scale. The Government schemes along with
MUDRA loans (collateral free loans) could be used by micro-level entrepreneurs. The
bamboo eco-system needs to be developed on commercial basis, along with the ready
availability of data. The importance of entrepreneur linked cluster development was also
highlighted. Further, CSR funding could be usedfor bamboo plantations.

Institutions
The different institutions (both in the region as well as those located outside) gave account of
their experience with the bamboo sector. They had undertaken several works for the sector,
including inthe NE region. They are ready to support further growth of the sector in the NE
Region.

International Practices on Bamboo


Experts from South Asian Countries such as Indonesia, Vietnam, Philippines- the countries
which have established bamboo based economy participated, gave their suggestion and
shared their willingness to work with NER. Experts from African countries Kenya and
Tanzania who has identified bamboo as emerging economic area and way to fight climate
change participated and explained their models. Enterprise from Israel working in bamboo
electric bicycle has also participated in the session.

5. SWOT Analysis
SWOT Analysis assesses the Strengths and Weaknesses of an entity, along with the
Opportunities and Threats emanating from the environment around it. It gives a good starting
point for planning a set of future activities related to the entity. In the present case, the
concerned entity is the bamboo sector of all the NE states taken together. The SWOT analysis
for the sector has been given below.

Strengths
 Availability of sizeable stocks of bamboos of various useful species
 Availability of considerable wasteland areas that are now unused (or less used) and which
can be utilized for bamboo cultivation
 Availability of traditionally skilled craftsmen in several clusters in the NE states
 Existence of other components of a bamboo eco-system within the region like entrepreneurs,
designers, institutions (working in parts of the bamboo value chain), government investment
etc. apart from craftsmen

Weaknesses
 Deficiencies in many parts of the value chain, which push up costs and reduce the market
value of the items produced – including lack of waste utilization, use of non-treated bamboo,
logistical weaknesses (transport and warehousing), sourcing issues, use of inappropriate
copies of imported machinery by industrial units, low use of modern tools and equipment
by artisans, limited market etc.
 Lack of high value product categories
 Limited amount of non-forest bamboo and its huge consumption on traditional industry.
 Lack of Research and Development and limited understanding of the bamboo as material
forvarious industries
 Lack of thrust upon scientifically managed bamboo plantations in the NE states, with
resources being mainly available from extraction of natural clumps and forest resources not
under government control.
 Inadequate credit linkage for entrepreneur and artisan based enterprises
 Limited use of modern designs and other innovations owing to the existence of a working
level gap between the institutions and designers (on one hand) and the entrepreneurs and
artisans (on the other hand)
 Unavailability of reliable data on many segments of the bamboo sector in NE Region –
resources outside forests, quantum of stock (species wise data), locally made products,
supporting services etc. – all of which constrain informed decision making
Opportunities
 Increased appreciation of bamboo as a sustainable alternative to tropical wood, leading to
rise in the global use of bamboo articles (both for industrially made items and artisanal
creations) and their global trade (mainly exports from Asia to Europe and North America)
 Focus of the Government of India at the highest levels upon the bamboo sector in NE
Region
 Significant opportunities to substitute imports of bamboo items with local alternatives on
competitive basis
 Possibility to converge Government schemes to develop the bamboo sector in NE Region
Threats
 High level of imports in certain items (like round bamboo sticks for agarbatti)
 Dependence on imported machines
 Competition from well established players in the global markets in case exports are
attempted
 Absence of large industrial units based on bamboo (excluding shuttered paper mills of
thepublic sector)

In addition, Chapte-6 discusses the measures proposed under the present Action Plan to
address the identified Weaknesses and Threats of the entity.

6. Priority Areas for Intervention


The development of the bamboo sector in NE India will require a host of interventions across
the eco- system. These have emerged from the previous chapters including the lessons from
past initiatives, study of the policy and regulatory framework for bamboo, SWOT Analysis,
stakeholders’ consultations, secondary research etc. The key areas across the value chain that
will need interventions under the present Action Plan include the following:
1. Market Identification: Survey of Existing and rapidly emerging market segments
2. Availability Survey and Real-time database: Identify the species suitable for target markets,
and their availability in the NE states (including species wise stock) and develop system to
capture real -time data on annually harvestable stock details.
3. Planting Materials: Develop Tissue Culture Labs & nurseries for increased availability of
planting materials
4. Plantation: Implement a plan for bamboo plantation in wastelands and mechanism to extract
forest based bamboo (excluding Reserve Forest and Protected Area Network);
introduction ofFSC certification.
5. Inbound & Outbound Logistics: Develop inbound logistics through the construction of
Bamboo Extraction Roads to reach bamboo rich belts in remote areas; potential use of in-land
waterway and railway; develop multi-model supply chain.
6. Research & Development and Entrepreneurship Development: Establish National Institute of
Bamboo Innovation and Technology (NIBIT) in NER, set up bamboo entrepreneurship fund,
capitalize on the innovative and technology driven solution of startups to solve bamboo sector
challenges. Establish a Bamboo Entrepreneurship Fund
7. Value Addition and Waste Utilization: Establish decentralized small units and large scale
centralized units in the sectors of Agarbatti, Charcoal & Activated Charcoal, Bamboo Fibre,
Bamboo Shoot based products, construction sector, and industrial handicrafts and bio-plastics
units; set up model multi-processing unit.
8. Machinery for Industrial Manufacture: Develop indigenous tools and machinery which suits
the Indian bamboo species; Capacity building of entrepreneur and labour in terms of using
advanced machines.
9. Policy Intervention- Need of National Bamboo Policy, policy revision for ease of access to
market,develop new market, promote innovation, increase productivity, ease of credit.
10. Finance: To attract private investment
11. Market Development: Through investors meet, buyer-seller meet, exhibition, technology and
skill transfer from best practice models, collaboration with South East Asian Countries for
skill upgradation and industry specific training.
12. Implementation Model: Progress monitoring, policy advocacy, coordination, convergence,
Monitoring of the Activities
8. Vision, Goals & Implementation Strategies

Vision Statement: The Vision for the Promotion of bamboo in the North Eastern Region
has beenstated below:
To take up initiatives for the sustainable and value added development of bamboo in the
North Eastern states of India in order to boost the incomes of growers, artisans and
entrepreneurs and to thereby contribute to the on-going initiatives at the national level
for an Aatmanirbhar Bharat (self-reliant India)

The above vision will serve the guide the development of the goals and strategies under the
presentAction Plan. These have been given below.
Goals: The goals of the present action plan have been summarized below:
 Goal-1: To undertake the sustainable development of bamboo in the North Eastern states;
 Goal-2: To undertake the value addition activities for bamboo in the North Eastern states;
 Goal-3: To boost incomes in people in the North Eastern states; and
 Goal-4: To contribute to the on-going initiatives for a self-reliant India.
The above goals have been derived for the above Vision Statement for the development of
bamboo in the NE states. These goals represent concrete aims of the Action Plan. The
implementation strategiesfor the plan have been proposed in order to reach the above goals.
Implementation Strategies: The table at the next page gives the strategies set out against
each of the above mentioned goals of the present Action Plan. It may be noted that the
Implementation Strategies seek to address the key areas for intervention that had been
identified during the study.

Goal Implementation Strategy


To undertake the sustainable Market Identification: Survey of the existing and rapidly
development of bamboo in theNorth emerging market segments – both nationally and globally
Eastern states including niche markets as an entry strategy
Availability Survey: Identify the species suitable for the above
markets, and their availability in the NE states (including species
wise stock), real time database on annually harvestablestock
details
Planting Materials: Develop Tissue Culture Labs & nurseriesfor
increased availability of planting materials
Plantation: Bamboo plantation in wastelands to supplement
sustainable utilization (including re-plantation) from forest
(excluding Reserve Forest and Protected Area Network)
To undertake the value addition Inbound Logistics: Develop inbound logistics through the
activities for bamboo in the North construction of Bamboo Extraction Roads to reach bamboo rich
Eastern states belts in remote areas and raw material stores near usage areas
Interventions for Value Addition in both decentralized small
units and centralized large scale units (a) Multi-model supply
chain(b) Waste Management, (c) New Product implementation
(c) Design & Technology Support, and (d) Research and
Development
Machinery for Industrial Manufacture: Develop suitable
machinery and tools that can be used with local bamboos in the
manufacture of industrial products like tiles, panels, laminated
furniture, and bamboo fibre etc.
Quality Assurance: Introduction of FSC certification
Outbound Logistics: Assessment of scope of in-land water
transport and railway
To boost incomes in people in the Establish a Bamboo Entrepreneurship Fund
North Eastern states Introduce front ended pro-rata subsidy for bamboo enterprise
development
Ease Flows of Bank Credit: Engagement of expert for DPR
preparation, Bamboo Finance Consortium, Bamboo Credit
Guarantee Scheme for NER
Revise cost norms of plantation under NBM for increased
productivity
Introduce inter cropping
To contribute to the on-going Market Development: Support the development of markets for
initiatives for a self-reliant India bamboo items by industrial units and entrepreneurs in the crafts
sector. Formation of North East Bamboo Market Development
Fund
Goal Implementation Strategy
Investor Meets: Encourage national and international investorsto
come to NE Region for bamboo based investments in the region
Waste Utilization: More cost competitive product from locally
available raw material
Jiggit Plantation: To reduce import dependence of Agarbatti
Industry
National Institute of Bamboo Innovation and Technology: For
developing indigenous technology across value chain component
of bamboo
[Other Strategies for successful Implementation Model: Introduce a professional agency to
Implementation of the Action Plan] implement the Action Plan with state level implementing agencies
(including Forest Departments, Forest Corporations, State
Bamboo Missions and other stakeholders including FPOs and
SHGs) and other entities in the eco-system like Institutions,
Designers, and Machinery Suppliers etc.
Collaboration with South East Asian Countries: For skill and
knowledge to India
Policy Changes: National Bamboo Policy, Cost norms, export
norms, subsidy norms of RNBM
Table-ES.1: Goals & Implementation Strategies of the Action Plan for the Promotion of
Bamboo in the NE Region
Each of the strategy are discussed in detail in the relevant chapter.

The total fund quantum proposed under the action plan is mentioned below-
Sl. Amount Rs. (in Cr) Convergence Existing Scheme/Fresh
No. fund
1 Market Identification 2.00 NBM Existing
2 Assessment of Resource Availability 18.04 NBM Existing + Fresh
and real-time database on annually
harvestable bamboo in the region
3 Plantation 1234.50 NBM Existing
4 Planting Material 191.74 NBM/DBT/DST Existing
5 BER Construction 209.70 PMGSY Existing
6 Formation of FPC-multi Model supply 11.55 DoNER Existing
chain
7 Outbound logistics- assessment study 2.00 NEC/TEDF Fresh
8 National Institute of Bamboo 306.00 MoAGFW Fresh
Innovation and Technology (NIBIT)
9 Bamboo Entrepreneurship Fund 100.00 Ministry of DoNER, Fresh
NITI Aayog
10 Value Addition and Waste Utilization 243.78 NBM Existing
11 L. Glutinosa (Jiggit) Plantation 12.50 Forest, CAMPA, Existing
JICA
12 Machinery, tools and capacitybuilding 4.40 NEC Fresh

13 North East Bamboo Market 10.00 NEC Fresh


Development Fund
14 Implementation Agency and Bamboo 20.00 NEC/DoNER Fresh
Investment Promotion Council of NER
Total 2366.21
Table ES2: Total Financial Resource Requirement of the Action Plan

9. Implementation Arrangement
For implementation of the action plan, it is suggested to engage a professional agency which
will work closely with the various stakeholder ministries, agencies and other stakeholders.
Further, NECBDC need to be scaled up as “One Window Solution” for bamboo sector
challenges of the region. A Bamboo Investment Promotion Council for NER is proposed
under the Aegis of North East Council with experts from World Bamboo Organization and
India Bamboo Forum. The mode of engagementof the professional agency and other details
are discussed under the relevant section of the report.
.
10. Expected Output and Outcome of the Plan
Summary of expected Output and Outcome
Increase in Out of Forest Bamboo Stock: The region has country’s 40% of the growing
stock of bamboo, however extractable stock is significantly less. The action plan aims to
increase bamboo cultivation area by 59,746 Ha, out of which 50,000 Ha is proposed to be
developed on wasteland and 9,746 Ha will be under certified captive plantation of Forest
Department.

Improve Productivity: For improved productivity through scientific management, it is


proposed to revise the existing plantation cost norms under NBM with incorporation of
additional components vital for plantation health.

Environmental Benefit: Bamboo has found growing interest amongst the global
community due to its contribution towards fight against climate change through restoration of
degraded land and wasteland. With this action plan 50,000 Ha of wasteland is expected to be
restored. This will significantly contribute in India’s commitment towards environment
protection and will assist in achieving Bonn Target.

Production of Globally standard Raw material: The proposed FSC certification in bamboo
forestry management will ensure globally compliant raw material production. This will create
new avenues for the entrepreneurs and growers for their products.

Emphasis on Indigenous Technology Development: The turn-around of Indian bamboo


sector depends upon its emphasis on research and development. The proposed National
Institute of Bamboo Technology is expected to give the much needed impetus to the
industrial application oriented bamboo sector research and development.

Reduce Import Dependence: By introducing enterprise in the entire value chain of bamboo
and focusing on waste utilization, it is expected that the Indian bamboo and raw material of
bamboo basedproducts will become cheaper than their import substitute.

Connectivity Improvement: Bamboo sector of the region suffers logistical challenge with
poor road connectivity especially in the growing belt. This reduces cost competitiveness of
the Indian products. The proposed action plan aims to improve connectivity from source till
market. With the proposed 520 kms. of Bamboo Extraction Road, emphasis is given on ease
of sustainable extraction of the natural stock. Further it is also proposed to explore more cost
effective inland water and railway route for raw material and finished goods transportation.

Bamboo Trade Intelligence: The glaring absence in the current ecosystem is that of reliable
data on bamboo. The proposed species wise stock survey and development of portal for real
time data of annually harvestable stock details will address this issue to a great length.

Entrepreneurship Development: In addition to supplement the NBM initiative of bamboo


entrepreneurship development, it is proposed to capitalize on the startup movement of the
country by
launching Bamboo Entrepreneurship Development Fund. Startups can also help to tackle the
bamboosector challenges with newer and innovative approach.

Revival of Traditional Industry: Once glorious agarbatti industry of India is today facing
challenge from other countries in terms of cheaper raw material. The action plan seeks to
address the root cause of such debacle through action in terms of waste utilization and
introducing high value supplementary products such as charcoal and activated charcoal.

Accelerate India’s Race to Global Bamboo Market: Sector specific time bound and
outcome oriented action is required to regain the global market. The action plan outlines
several such critical gaps which need to be immediately addressed. Many of the existing
research projects need to be expedited which aims to introduce new product development
such as bamboo fibre, etc. Further through the proposed Bamboo Market Development Fund,
it is proposed to develop Indian bamboo products at par with global standard through
improved machinery, increased investment and global market linkage.

Global Skill and Skill Knowledge Transfer to NER: The NER region has strong artisanal
skills. Thiscan be further improved in terms of design, finishing etc. with help from experts or
master artisans from South East Asian countries.

Improved Package of Practice for Harvesting: Through formation of 77 nos. of FPC with
multi- model supply chain orientation, there will be improved harvesting practice, reduction
in in wastage and increase in farmers’ income.

Strengthening existing stakeholder: Through setting up of Bamboo Cell/Division under


each Forest Department of NER states; strengthening of State Forest Development
Corporations; setting up of Centre of Excellence for Bamboo Machinery at NECBDC-
dedicated bamboo specific initiative from the existing stakeholder institution is expected to
increase.

Improving Credit Flow: The action plan understands challenges of central sector scheme
implementation in the region. Institutional credit is inadequate for the bamboo ecosystem of
NER. The action plan makes specific suggestion to improve credit flow to the entrepreneur
through revision of existing NBM norms of funding and suggesting new financial products
such as Bamboo Credit Guarantee Scheme etc.

Expected Socio-Economic Impact

On implementation, it is expected that there will generation of 47,000 nos. of direct


employment and 1, 63,672 nos. of indirect employment. Detailed sector wise employment
generation is given under therelevant chapter. In addition to this, there will be an earning of
Rs. 4.04 Cr in form of GST by the government upon establishment of the proposed value
addition units. Break up given in relevant section.
Further, it will also help in increasing farmer’s income, contribute towards the mission of
doubling farmers income, bring economic opportunity to rural women thereby reducing
poverty.

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