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audit COMMITTEE

CASE STUDIES

Enabling Paper Mills write Success Stories

West Bengal

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