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Economic analysis of industrial agroforestry: poplar (Populus deltoides) in Uttar Pradesh (India)
Authors:S K Jain  P Singh
Institution:(1) Centre for Management in Agriculture, Indian Institute of Management, Vastrapur, Ahmedabad, 380 015, India;(2) Division of Agricultural Economics, Indian Agricultural Research Institute, Pusa Road, New Delhi, 12, India
Abstract:To meet raw material requirements, Wimco, the biggest manufacturer of matches in India, has been promoting poplar-based agroforestry through an agroforestry project since 1984 approved by the National Bank for Agricultural and Rural Development (NABARD) in the northern region of India. This study aims at evaluating the performance of poplar-based agroforestry in terms of income, employment and environmental impact from the farmers' perspective. Poplar-based agroforestry is economically viable and more profitable than many of the crop rotations followed in the study area. This land-use system is also capable of providing employment opportunities on farms. Sensitivity analyses indicate that this system is not highly risky. However, costs charged by Wimco for technical advice substantially reduce the income from poplar plantation. With agroforestry experience, farmers can expect high dividends in subsequent rotations. Life-time matrices developed through group interviews are useful for thorough economic analyses of agroforestry projects, particularly in cases where data over a period of time are not available.This revised version was published online in November 2005 with corrections to the Cover Date.
Keywords:commercial plantation  contract farming  farm forestry  land-use system
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