For the enterprise’s pulp requirements - Bamboo from Government owned forests and hardwood from farm forestry plantations is being procured.

The prevailing situation in India still does not permit captive industrial plantations for pulpwood – due to statutory ceilings on agricultural land holdings and government policy of not involving industries in reforestation of degraded forest lands.

The Division, therefore, opted to promote farm forestry plantations on marginal agricultural lands by providing high quality seedlings, technical extension services and buy-back guarantees at remunerative prices to farmers.

The Clonal Technology Research and Development programme facilitated the objective of enhancing farmer economics and thereby achieving self-sufficiency.

To achieve self sufficiency in cellulosic raw materials (present requirement approx 400,000 tpy and likely to grow to 600,000 tpy and then 800,000 tpy) launched a plantation programme (Farm Forestry). In the early stages encouraged 6185 farmers to cover 7441 hectares with Eucalyptus seed route plantations from 1138 villages in the districts of Khammam, West Godavari, Krishna, Guntur, Prakasam, Nalgonda and Warangal of Andhra Pradesh.

To make this programme more attractive by increasing the levels of productivity from 6 - 10 CuM Mean Annual Increment(MAI) to 20 - 58 CuM (MAI) & to show to the conventional agri farmers a best alternative land use option, initiated Research & Development for tree improvement and developed 'Bhadrachalam' clones.

Farm Forestry : For commercial & sustainable tree growing, developed a package of scientific silvicultural practices and transferring to the farmers to raise & maintain highly scientific & successful plantations with a buy back arrangement at prevailing market price. So far encouraged over 10,000 farmers participation in plantation programme and covered an area of around 41,715 hectares.