- Remarkable achievement for cooperative made up entirely of marginal farmers
- PACL now in a position to sell FSC certified wood
Pataneshwari Agricultural Cooperative Limited (PACL) has earned the Forest Stewardship Council™ (FSC-C105497) Forest Management certification from Scientific Certification Systems, one of the world’s leading FSC certifiers and one of FSC’s founding members. FSC provides third-party certification confirming that materials sold as FSC certified are harvested from well-managed forest operations. This is a remarkable feat, considering that PACL comprises a group of marginal and small-time farmers in Orissa’s Jeypore district,
PACL was the brainchild of Ballarpur Industries Limited (BILT), the pulp & paper arm of the US$ 4 bn Avantha Group. To secure raw material supplies for its manufacturing unit in Jeypore, BILT mobilised small and marginal farmers to grow pulpwood on degraded lands.
According to the working model, a farmer took up plantation in one or two acres of his own degraded land by availing a loan. BILT assured buy back of his entire produce at maturity at market rates. The Patneswari Agricultural Cooperative Limited (PACL) was formed to enable these farmers to access a line of credit through creating a mechanism of collective collateral. As most farmers were not credit worthy and banks were unwilling to disburse loans, BILT mobilised the initial loan to PACL in 2006. Today this registered co-operative has grown and boasts a membership of 800 farmers. PACL was voted ‘Best Self Help Cooperative in the District’ for 2009, the same year NABARD committed to provide PACL with a loan to cover 5,000 acres in the next five years, thus impacting the lives of more than 3,000 families of marginal and small time farmers who, as of 2006, lived on less than a dollar a day.
Considering PACL’s humble beginnings, the FSC certification is truly commendable.
Speaking on the occasion, Ms. Yashashree Gurjar, Head CSR and CEO Avantha Foundation said, “It’s a great achievement and honour for Pataneshwari Agricultural Cooperative to be certified by a recognised council like FSC that follows international gold standards for responsible forest management. PACL’s success has shown that it is possible for companies to develop inclusive business models that empower communities to become partners in businesses. At BILT, we’ve always believed in promoting inclusive growth.”
The certification covers Eucalyptus hybrid (Eucalyptus camandulensis/tereticornis) and Acacia mangium, and is valid till 2016.