World-over the common practice for growing pulpwood plantation is to plant with a single species in a block on a forest area which was acquired, clear felled and planted.  However, the ITC’s initiative on agro-forestry plantations started in on private lands in the year 1992 to meet its wood demand for production of paper and paperboard. The clonal plantations under agro-forestry gave a productivity of 25 t/ha/yr as against 6 t/ha/yr from seed origin plantation.

By now the company has successfully promoted 158,000 ha plantations plantations.  In the first phase, block plantations are raised with a spacing of 3 x 1.5 m with 2222 trees / ha.  The intercrop is taken in between the lines in the first year only as the canopy closes in the second year onwards.  A new concept was evolved after a series of experimental trials with different planting geometry wherein, pulpwood trees are planted apart either in a single or double row (Alley cropping) leaving a wide gap of 8 m to allow maximum sunlight for growing food crops in-between the lines. The model accommodate 2000 trees / ha and the land allocation is 25% for tree crops and 75% for agricultural crops. Every year the farmer can take food crops regularly and harvest the trees after 4 years interval. In case of crop losses due to draught, flood, pest and diseases, the income from tree hedge the risk. The novelty of the agro-forestry model is to improve the farm productivity and profitability while conserving the environment and bringing diversification on farm lands.  By now, ITC has put up “Agro-forestry for wood and food security” demo plots in Andhra Pradesh and Madhya Pradesh over an area of 4000 ha.

The agro-forestry plantations of 158,000 ha over one cycle of 4 years, create an estimated wood asset value of INR 5530 cr (yield of 100 t/ha and average price of Rs.3500/t), off-set 28.9 million tons CO₂ and create employment for 71 million persons days from various activities thus greening the triple bottom line (Environmental, Societal and Economic) and creating enduring value to the nation.