Initiative:
NABARD and Hindustan Paper Corporation join hands to facilitate timely and adequate fund flow to farmers growing bamboos
Beneficiaries:
Bamboo farmers and paper mill workers in the north eastern state of Assam
The challenge:
- Cachar Paper Mill and Nagaon Paper Mill were running into losses due to the lack of regular supply of bamboo, their main raw material
- Workers were distraught with irregular work and delayed payments
- Informal sources of credit at high interest rates had sprouted to benefit from the helplessness of workers
The solution:
- Formation of bamboo co-operative societies by all concerned i.e. farmers, collectors and suppliers
- Provision of financial assistance to different players in the supply chain
- A certain percentage of the total supply assigned to co-operative societies in the annual tenders floated by the corporates
- Bamboo supply contracts awarded to co-operative societies participating in the tender
The impact:
- Financial assistance from NABARD to the co-op society ensured consistent raw material supply to the paper mills
- Repayment period for farmers came down from the previous 90 to 60 days
- Timely wages assured to workers
- Decline in dependence on money lenders