UPSC Foundation 2026 and JPSC Mentorship admissions open Daily Current Affairs
learnpro Civil Services
LearnPro Menu
Home Current Affairs All Articles
UPSC
UPSC NOTES
STATE PSC
OPTIONAL SUBJECTS
CURRENT AFFAIRS
DAILY EDITORIAL
COURSES
DOWNLOAD NOTES
PYQ Papers Mains Answer Writing Online Courses

CA Topic

India’s Agroforestry Ambitions & Financing and Policy Hurdles

Brief Context

Context Recently, the experts highlighted that India’s agroforestry continues to face serious challenges, especially in access to finance, policy implementation, and farmer awareness, during the first South Asian Agroforestry Trees Outside Forests (AF-TOF) Congress. South Asian Agroforestry Trees Outside Forests (AF-TOF) Congress It is referred to as the ‘Treescapes’ 2026 Congress. It marked the first regional platform dedicated to advancing agroforestry and Trees Outside Forests (TOF) across So

Source Content

Syllabus: GS3/Environment

Context

  • Recently, the experts highlighted that India’s agroforestry continues to face serious challenges, especially in access to finance, policy implementation, and farmer awareness, during the first South Asian Agroforestry & Trees Outside Forests (AF-TOF) Congress.

South Asian Agroforestry & Trees Outside Forests (AF-TOF) Congress

  • It is referred to as the ‘Treescapes’ 2026 Congress.
  • It marked the first regional platform dedicated to advancing agroforestry and Trees Outside Forests (TOF) across South Asia.
  • It was organised by the Centre for International Forestry Research and World Agroforestry (CIFOR-ICRAF) in collaboration with the Indian Council of Agricultural Research (ICAR).

About Agroforestry

  • It is a land-use system that integrates trees with crops and/or livestock on the same land.
  • It enhances food security, soil health, biodiversity, carbon sequestration, and income diversification for farmers by combining perennial trees with farming systems.
  • It helps in addressing land degradation and climate risks.

Current Status & Future Projection

  • India currently has about 28 million hectares under agroforestry, and the government aims to expand this to 50 million hectares by 2050.
  • Tree-based systems account for nearly 20% of India’s national carbon stocks.

Related Issues & Concerns

  • Limited Access to Finance: Of nearly ₹20 lakh crore in annual institutional agricultural credit, less than 5% reaches agroforestry. Reasons include:
    • Long gestation periods (5–30 years);
    • Tenure and land ownership complexities;
    • Lack of acceptable collateral;
  • Policy Awareness Gaps: Low awareness among farmers about the National Agroforestry Policy, 2014, especially regarding:
    • Tree harvesting rights;
    • Transit and regulatory clearances;
  • Weak Policy Implementation: Although agroforestry is recognised as climate- and livelihood-friendly, it remains under-supported by institutions and financing mechanisms, limiting scale and impact.
  • Missed Economic Opportunities: India imports over $7 billion worth of wood annually, indicating underutilised domestic potential, lost opportunity for farmers and the green economy, despite strong domestic tree resources.

Efforts For Agroforestry in India

  • National Agroforestry Policy, 2014: First-of-its-kind policy globally to promote tree-based farming.
  • ICAR-led research and regional studies: Evidence shows agroforestry helps reduce deforestation and avoid tens of millions of tonnes of GHG emissions annually.
  • AF-TOF/Treescapes Congress: Regional platform involving policymakers, researchers, financial institutions, industry, farmers, and youth to strengthen governance and investment frameworks.

Way Forward

  • Improve Institutional Credit Flow through tailored financial products for long-gestation tree systems.
  • Simplify Regulations on tree harvesting and transit, with clear, farmer-friendly guidelines.
  • Enhance Awareness of agroforestry policies at the grassroots level.
  • Leverage Carbon Markets and Digital Tools: Align carbon credits, digital traceability, and private-sector procurement with smallholder realities.
  • Reduce Import Dependence: Promote domestic timber and tree-based value chains to strengthen rural incomes, especially for India’s 86% marginal farmers.
  • Align Climate, Agriculture, & Trade Policies to unlock agroforestry’s potential for income generation, climate mitigation, and ecosystem services.

Source: DTE