Case Studies

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Enabling Paper Mills write Success Stories
West Bengal
NABARD and Hindustan Paper Corporation join hands to facilitate timely and adequate fund flow to farmers growing bamboos

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

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