In India, Haryana state with deficient forest resources, is a leader not only in agriculture but also in commercial agro-forestry. The state has the biggest farm-grown wood market (annual turnover of about Rs 10 billion) of the country at Yamunanagar. In this market, one third of farm grown-wood comes from Haryana state while two third arrives from the adjoining states of Punjab, Uttarakhand and Uttar Pradesh. This town is a hub of the wood-based industries (WBIs) as 84% of the plywood/veneer (PV) units of the state are located here. Yamunanagar is known as plywood capital of the country as the units in this town itself produce about 50% of the plywood of the country. PV units provide employment opportunities to about 0.15 million workers and contribute nearly Rs 220 million each towards the sales tax and excise duty annually to the state exchequer. This model has resulted into increased income of the farmers and created immense employment & business opportunities for different stakeholders like contractors, commission agents, labourers, factory owners, etc. This model has saved the natural forests of the country and has contributed towards environmental conservation through carbon sequestration by adopting the agro-forestry cropping pattern. This model is the living example of win-win situation for both the farmers and WBIs in India.

An effort has been made in this paper to analyse the reasons which have led to the development of this model and to quantify the benefits of employment generation and increased income to the different stakeholders. This paper recommends the strategy for further consolidation of this model in consultation with the different stakeholders and measures required for its replication in other states of the India and different countries of the world.