The Government incorporated HPC in the wake of the paper crisis during the 1970s; Cachar Paper Mill commenced production in the mid eighties. When they were set up they must have been the first PSUs in the industrially backward Northeastern region. Both the paper mills provide employment directly and indirectly to more than 6000 people.

When they were set up they must have been the first PSUs in the industrially backward Northeastern region. Both the paper mills provide employment directly and indirectly to more than 6000 people.

When the gregarious bamboo flowering known as Mautam occurred in 2006, it sounded a death knell for the Mill given the fact that the rich bamboo forests of Mizoram provide about 70 percent of the raw materials used in the Mill.  During the Mautam period of 2006 – 2007, large bamboo forests in Mizoram were completely devastated resulting in the Mill not being able to meet its requirements. Hence the Mill was forced to import soft wood and pulp from outside the region to meet its need. This has resulted in a steep drop in the production of the Cachar Paper Mill and during the last three financial years it has accumulated losses of more than `200 crores. The woes do not end here.  The recent decision of the Mizoram Government to do away with the bamboo ‘Mahal’ system and stop the export of bamboo till it evolves a comprehensive and sustainable bamboo harvesting policy has sent jitters not only to the management of the CPM but also to the people in the adjoining villages and the bamboo traders of Cachar and Hailakandi Districts.

The decision of the Government was based on its assessment of rampant unchecked felling of bamboo under the wasteful ‘Mahal’ system, especially in the western belt of Mizoram. This has resulted in severe environmental degradation and loss of forest cover. In addition, the Government wanted to add value to bamboo by making bamboo chips and also supplying split bamboo which could help it earn more revenue.

The Mill was forced to import soft wood and pulp from outside the region to meet its need. This has resulted in a steep drop in the production of the Cachar Paper Mill and during the last three financial years it has accumulated losses of more than Rs 200 crores.

In response to the request of the management to visit the Mill, S. Hiato Industries Minister along with H. Zothangliana Parliamentary Secretary and senior officials of the Industries Department and other officials from the Bamboo Development Board visited the Mill on the 10th of September 2011. The Union leaders of the Mill called on the Minister and his team and apprised them of the hardships that the Mill is reeling under besides the major hope that they have from Mizoram.  Elaborating on the reasons for stopping of the ‘Mahal’ system, Pu Hiato stressed on the need to have a sustainable mechanism for harvesting of bamboo in such a way that the damage to the environment is as minimal as possible. Pu S Hiato said that the Cachar Paper Mill and Mizoram need each other and that any issues between Cachar and Mizoram should be solved on the negotiating table rather than resorting to strikes and bandhs which often create hardship for people from both areas. The Minister also mentioned that paper companies from Bangladesh have evinced interest in the bamboo resources of the state.

The team of officials from Mizoram lamented the low prevailing rates and said that the rates of bamboo need to have an upward revision. The Union leaders on the other hand said that the Mill has to compete with corporate paper mills based in North and South India which have many operational advantages over the Cachar Paper Mill and pointed that the price of paper has not risen in comparison with other commodities.

While talking about the huge untapped bamboo resources in the southern part of Mizoram, Pu H Zothangliana, Parliamentary Secretary said that if the Mill could set up a Pulping Unit in the area, it would be beneficial for both, as the Mill would get supply of raw materials and the people of the southern part of Mizoram would get employment.

The Minister and his team of accompanying officials were then taken on a tour of the Mill to witness firsthand, the process of making paper. Later the Minister and his team had a meeting with the senior officials of the Mill to discuss the issues related to the supply of bamboo.

The Mills of HPC in the North East are the only paper mills in India that make paper from bamboo rather than wood. Bamboo which is one of the fastest growing plants is ready for harvesting in about four years compared to more than twenty years for trees. Hence in this regard the mills can be said to be more environment friendly than the other mills of the country. The Government should take steps to encourage paper based industries to set up shop in the North East which can source materials from the Mill. This can help generate employment opportunities for the local population besides giving a fillip to the economic development of the region.