CSS-REPORT

Project Report

VALUE CHAIN ANALYSIS OF MEDICINAL PLANT PRODUCTS PROMOTED UNDER THE COMMUNITY-

BASED MICROENTERPRISES THROUGH DABUR-BAITARANI INITIATIVE

March- May 2016

Prepared by:

Susruta Dash - 15201030Rajesh Sinha - 15201016MBA RM - 2015-17

KIIT School of Rural Management

KIIT University, Bhubaneswar – 751024

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AKNOWLEDGEMENT

It is our great pleasure to have this opportunity to describe the interior feeling of

gratitude from the core of our heart. This case study segment would not have been successful

without any cooperation from individuals and institution. First and foremost we are thankful to

Prof. (Dr) L.K Vaswani, Director of KIIT School of Rural Management for placing the Case Study

Segment (CSS) Fieldwork component as a part of our course curriculum. Again thanks to Prof.

Ajith P and Prof. Damodar Jena our CSS Coordinator whose encouragement and valuable

inputs helped us throughout the study.

We have immense pleasure in expressing our deep sense of gratitude and sincere thanks

to our host organization BAITARANI INITIATIVE esteemed reporting officer Mr. Pranab

Ranjan Choudhary providing us project and Assistant reporting officer Mr. Deepak Mishra

who helped us at the field very much and team member and Field Guider of each forest

divisions, Who facilitated our accommodation and made us to learn all the CSS components by

doing and interacting with villagers. We are thankful for their feedback and support for the

Case Study Research Segment and to share with us useful experiences during the field visit.

In order to complete field work successfully, we would like to present specially thanks to

Mr. Sunil kr. Subudhi of Baliguda division, Mr. Abhimanyu of Deogarh division, Mr.Priya ranjan

Jena of Parelakhemundi division, Mr. Sumanta of Bonai division, Mr. Sandeep of Rayagada

division also respective villagers who provided their valuable time made our stay meaningful.

Who shared their valuable time & experience with us for our study. Without the cooperation of

these villagers it would not have been possible to complete the study.

Finally, from the bottom of our heart we thankful to GOD for giving us such a wonderful

opportunity to explore His beautiful creation. Susruta Dash (15201030)

Rajesh Sinha (15201016)

MBA RM-2015-17

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CERTIFICATE

This is to certify that this project report has been prepared by

Susruta Dash (15201030) & Rajesh Sinha(15201016)

in partial fulfillment of

Master of Business Administration in Rural Management

Offered by KIIT School of Rural Management, KIIT University.

They have undergone the Case Study Segment & have completed the project

work successfully under my guidance. Date: Prof. Ajith P

(KIIT School of Rural Management)

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TABLE OF CONTENT AKNOWLEDGEMENT .......................................................................................................................1

CERTIFICATE…………………………………………………………………………………………..2

EXECUTIVE SUMMARY……………………………………………………………………………….4-6

LIST OF ABBREBATIONS……………………………………………………………………………..7

CHAPTER- 1 INTRODUCTION.................................................................................................................... 8-10

CHAPTER- 2

LITERATURE REVIEW…………………………………………………………………………..10-14

CHAPTER -3

OBJECTIVE …………………………………………………………………………………….15

METHODOLOGY………………………………………………………………………………..15-16

STUDY AREA……………………………………………………………………………………16-17

CHAPTER-4

SOCIO-ECONOMIC BACKGROUND……………………………………………………………17-18

CHAPTER -5

COST ANALYSIS OF DIFFERENT PRODUCTS ………………………………………………….18-12

CHAPTER-6

OTHER OPPORTUNITY COST AND COMPETING INCOME……………………………………..30-33

CHAPTER-7

INSTITUTIONAL ARRANGEMENT……………………………………………………………….33-53

CHAPTER-8

PRODUCT KNOWLEDGE………………………………………………………………………53-57

CHAPTER-9

DISCUSSION AND RECOMMENDATIONS………………………………………………………58-68

CHAPTER-10

CASE STUDY……………………………………………………………………………………69-70

ANNEXTURE …………………………………………………………………………………...71-88

REFERENCE ……………………………………………………………………………………..89

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EXECUTIVE SUMMARY

Introduction

The terms non-timber forest product (NTFP) and non-wood forest product (NWFP) are used

interchangeably. They are products of biological origin, other than wood, derived from forests, other

wooded land and trees outside forests. NTFPs may be gathered in the wild or from trees outside forests

or produced in forest plantations and agro forestry schemes. Examples of NTFPs include food additives (edible nuts, mushrooms, honey, fruits, herbs, spices and condiments, aromatic plants, game); fibres

(used in construction, furniture, clothing or utensils); resins and gums; and plant and animal products

(used for medicinal, cosmetic or cultural purposes). Several million households worldwide depend

heavily on NTFPs for subsistence or income. Some 80 per cent of the people in the developing world

use them for health and nutritional needs. Women from poor households generally rely on them most

– for household use and income. NTFPs also provide raw materials for national, large-scale industrial

processing and are important export commodities, with at least 150 significant products in terms of

international trade. They have also attracted considerable global interest in recent years for their contribution to environmental objectives, including the conservation of biological diversity.

Whereas 70 per cent of India’s population lives in rural areas, for tribal this is as high as 90 percent.

It is well established that most Tribal live in forested regions, and their economy is heavily based on

gathering from forests. In all about 100 million people living in and around forests derive at least part

of their livelihood from collection and marketing of non-timber forest products. These NTFPs provide subsistence and farm inputs, such as fuel, food, medicines, fruits, manure, and fodder. The collection

of NTFPs is a source of cash income, especially during the slack seasons.

Objective of the study

The overall objective is to study the value chain of medicinal plant products (Amla- Emblica officinalis,

Bahada- Terminalia belerica,Harida- Terminalia chebula,Dhatki flower –Woodfordiafruticosa, Talamuli- Curculigoorchioides,Bhuikaharu- purariatuberosa, Satavari- Asparagus racemosus) promoted under the

community based microenterprises through Dabur - Baitarani Initiative.

• Analysis of cost at different stages under the existing Value Chains.

• Comparative analysis of competing incomes and other local opportunity costs.

• Analysis of institutional arrangements and stakeholders in the existing value chain.

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• Recommendation for enhancing efficiency of value chain by optimizing cost and Institutional arrangements.

Methodology Primary data was collected from different sources like primary NTFPs collector, village

SHGs, aggregating SHGs, cluster SHGs by using different Data collection tools as follows. Focus

group discussion was conducted at aggregation SHGs as well as at village SHGs to obtain qualitative

information regarding this year collection, different issue (infrastructure finance, processing etc.)

,further improvement & the information regarding different sources of collection of medicinal

NTFPs. The questionnaire survey was conducted with primary medicinal NTFPs collector and with

village SHGs which includes open ended and semi-structured questions for obtaining both qualitative and quantitative data regarding cost analysis, other opportunity income, processing

knowledge etc. some information was also collected from Local traders, Local baidya, other govt.

And non govt. Organization those are involved in NTFPs trading DFO of 6 forest division. The main

objective was to collect data regarding current market price, MSP of desired medicinal NTFPs,

medicinal properties, harvesting period, quality processing etc. During whole process of field survey

some other information was collected by directly observing the informants and it was noted down

under observation section. Secondary data was collected from BATARANI INITIATIVE, from

different literature published on medicinal NTFPs and from field staff (CRP, DRP).Total sample size of 120 was taken for the survey.

Findings

As per the objectives we have collected data regarding cost involved in various stages of the value chain in the processing of medicinal NTFPs. various activities involved in processing are collection

of the raw NTFPs from the forest, deseeding, drying, transportation, shorting, grading packaging

and final transportation. All these activities are done at different stages of value chain such as at

primary collector level, at SHG level, at aggregation point. As our study focus on six medicinal

NTFPs, cost involved in processing is different for different product. In some product primary

collector incurring loss due to lack of processing skill, giving more raw product( MSP for raw is less

than processed product).As per second objectives other opportunity cost and competitive income

in local area are mainly like MGNREGS, other NTFPs business, income from Non-Agri activates. These are the main cause affecting this medicinal NTFPs as they are getting high income from this.

Findings from institutional arrangement are like procurement from selected 10 village is irregular

due to fluctuation in fruiting, opportunity cost in the target village is more than this NTFPs business

etc. There is less participation From SHGs members as a group in processing method which is

hampering the business. Product leakage is another issue which is affecting this business. Due to

lack of sufficient product knowledge, lack of processing skills, processing tools the volume of

processed is not up to target. There is a communication gap between CRP DRP and SHGs by which

smooth facilitation is not happening in the existing model.

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NTFP is definitely not a replacement for primary source of income but it provides an additional

income support for tribal community during lean period.

Recommendations:

Based on our findings some key recommendations were given to host organization such as

introducing new rate chart or revised MSP on the basis of quality of product, input cost involved in

processing. Most importantly other opportunity cost should be taken into account so that it can

match up to that and can attract people towards this business. On strengthening existing model

village selection should done properly so that procurement can be enhanced. As SHGs participation

is very less at village level, implementation of village level leading collector (VLLC) can be done to

enhance procurement and communication gap can be reduced. There should be an upgrade in

physical infrastructure like providing processing tools, drying yard etc. which will help in easier processing and also in safe processing. Quick and easier Loan linkage can be done through tie up

with financial institutions like NABARD which will help to enhance the value chain.

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List of abbreviations

NTFP Non Timber forest produce

MPP Medicinal Plant Products

PC Primary Collectors

SHG Self Help Group

OTHER SHG The SHG outside of the target village from where product is procured

AGGREGATION POINT- The point in the value chain where final value addition is done

CRP Community Resource Person

DRP Divisional Resource Person

VSS Vana Sangrakshan Samiti

MFP Minor Forest Product

MSP Minimum Support Price

VLLC Village Level Leading Collector

CLUSTER The point where lifting of the product is done after final value addition.

MGNREGS Mahatma Gandhi National Rural Employment Guarantee Act

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CHAPTER 1

1. Introduction

1.1 Organization Profile:

Baitarani Initiative is an attempt to optimize use of knowledge, research and innovation in the

development process. It is an engagement of young and qualified professionals with various

development stakeholders at different levels and across disciplines of environment and development,

towards appropriate management and democratic governance of natural resources especially that of

Water, Forest, Land and Farming Systems for augmenting dignified, peaceful and sustainable livelihoods support to marginalized and disadvantaged communities and groups across the country.

This civil society initiative has emerged from an action research project in 2006, which for the first time

in India tried to proactively explore options for futuristic and inclusive resources management in a river

basin of Odisha. It was premised on following a holistic approach by connecting basin stakeholders’

across space and time to address their livelihood concerns for the present and future, across the basin

landscape.

Poor and marginal communities globally are faced with a herculean task to sustainably and equitably

govern/manage their natural resources and sustain their ecosystems and livelihoods in the wake of ongoing development trajectories along with climate change. They along with the state and other

development stakeholders are in search of options to prevent, mitigate and adapt to increasing risks

and vulnerabilities of the environment and communities. At this cross-road, Baitarani Initiative is a

proactive attempt to provide a civil society platform for carrying out collaborative and participatory,

interdisciplinary action and policy research to generate ‘research and evidence-based information’ to

strengthen and aid stakeholder-inclusive development processes.

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1.2 About Baitarani Initiative and Dabur India pvt. Ltd collaborative project:

Project Title

Trading and Regeneration work Facilitation of Medicinal species in 6 forest divisions of Odisha

Donor/ Client

Dabur India Pvt. Limited

Duration 15months

Nature of job

Implementation & Facilitation services

Geographical area

Koraput, Rayagada, Gajapati, Phulbani, Deogarh and Sundargarh Districts, Odisha

Targeted Medicinal Products

Dhatki , Bidari kand , Satavari, Talamuli

Myrobalans (Amla, Harida, Bahada)

In the year 14-15 in a collaboration approach both Dabur India Pvt. Ltd and Baitarani initiative

successfully implemented some activities around targeted medicinal plant management and thereby

provided a better livelihood opportunity to forest dependent people. The intervention was unique in its

own kind because of its community driven approach, high level of transparency and steps towards

sustainable management of targeted medicinal plant product. Around 46MT of different plant products

were collected, processed and marketed with support of Dabur. This initiative was appreciated at different level, by individuals, organizations and government departments. In this process Odisha Forest

Sector Development Program support was also quite appreciable. At the end of the season it was

noticed that still a lot of things requires further assistance and follow up to make this process

sustainable. And it was decided to continue this Government, Corporate and Social Sector joint effort

work in coming year.

From current year (2015-16) a twofold approach is

adopted to ensure the

common goal. One aspect is

to establish a nursery of

selected species and to

promote “ex-situ”

conservation and resource

augmentation for the targeted species and later on

YEAR 14-15 PROGRESS OF WORK AT A GLANCE 2015 2016 No. of targeted village 170 400 No. of forest division covered 7 7 No. of forest range covered 20 No. of Aggregating SHG through which product pooling and trading was ensured

15 40

Different medicinal product Quantity handled in MT 46 80 Amount earned by the community in Lakh 20 Area regenerated with medicinal plants by community in 6 villages (ha)

6

No. of person trained under medicinal plant regeneration and trading

345

No. of booklet published around this activity 1 No. of State level workshop around this activity 1

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to expand the specific species stock augmentation work in other individuals land. Second aspect is to

promote livelihood opportunities through collection of medicinal plant products and there by forward

market linkage with help of Dabur.

Figure 1: Product pooling structure:

CHAPTER 2

2. Literature Review

2.1 Understanding NTFP:

Non-timber forest products (NTFPs) are any product or service other than timber that is produced in

forests. They include fruits and nuts, vegetables, fish and game, medicinal plants, resins, essences and

a range of barks and fibres such as bamboo, rattans, and a host of other palms and grasses.

Nodal SHG / Cluster

Primary Collector

Local Wholesaler and individuals & village

Other SHGs

Own Collection

Aggregation/ Value Addition &

Processing From Weekly Market

Other Dept. /Agency

FD-Giving Clearance

GP-Giving License

VSS Revolving

Primary C

ollector

GMCL-Procuring

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Non-timber and non-wood forest products – some facts and figures

The terms non-timber forest product (NTFP) and non-wood forest product (NWFP) are used interchangeably. They are products of biological origin, other than wood, derived from forests, other

wooded land and trees outside forests. NTFPs may be gathered in the wild or from trees outside forests

or produced in forest plantations and agroforestry schemes. Examples of NTFPs include food additives

(edible nuts, mushrooms, honey, fruits, herbs, spices and condiments, aromatic plants, game); fibres

(used in construction, furniture, clothing or utensils); resins and gums; and plant and animal products

(used for medicinal, cosmetic or cultural purposes). Several million households worldwide depend

heavily on NTFPs for subsistence or income. Some 80 per cent of the people in the developing world

use them for health and nutritional needs. Women from poor households generally rely on them most – for household use and income. NTFPs also provide raw materials for national, large-scale industrial

processing and are important export commodities, with at least 150 significant products in terms of

international trade. They have also attracted considerable global interest in recent years for their

contribution to environmental objectives, including the conservation of biological diversity.

Source: www.fao.org/forestry/site/nwfp/en.

2.2 NTFP based Livelihood in General:

Whereas 70 per cent of India’s population lives in rural areas, for tribal this is as high as

90 percent. It is well established that most tribal live in forested regions, and their economy

is heavily based on gathering from forests. In all about 100 million people living in and

around forests derive at least part of their livelihood from collection and marketing of non-

timber forest products. These NTFPs provide subsistence and farm inputs, such as fuel,

food, medicines, fruits, manure, and fodder. The collection of NTFPs is a source of cash

income, especially during the slack seasons.

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Table 1: NTFPs Seasonality

Seasons MFPs collected Economy

January- March Lac (resin), mahuwa, flower and tamarind , dhatki flower , Bahada

Over 75 per cent of tribal households in Orissa, Madhya Pradesh and Andhra Pradesh collect mahuwa flower and earn Rs.5000 a year. 3 million people are involved in lac production.

April-June Tendu leaves, sal seeds and chironji

30 million forest dwellers depend on seeds, leaves and resins from sal trees; tendu leaf collection provides about 90 days of employment to 7.5 million people, a further 3 million people are employed in bidi processing

July-September Chironji, mango, mahuwa fruits, silk cocoons and bamboo

10 million people depend on bamboo for livelihood; 1,26,000 households are involved in tussar silk cultivation only

October- November

Lac, kullu gum, resins used in incense sticks , Harida , Satavari , Bhuikakharu

3 lakh person days of employment from collection of gums.

Government policy towards agricultural and forest produce: a comparison

Agricultural produce NTFPs Annual fluctuation in production

Generally within 20 to 50% of the normal

Could be more than 200%

Who is concerned with increasing productivity

Farmers, seed, fertiliser and pesticide industry, agricultural universities and government.

Almost no-one, it is left to nature. On the other hand, government policies reduced diversity and consequently hurt NTFP production.

Government subsidy in procurement and distribution

Food subsidy was Rs 60,000 crores in 2009–10. This generally benefits surplus farmers and urban consumers. In addition, other inputs such as fertilisers, water and power are highly subsidised.

There is no system of minimum support price. Inefficient government corporations do get some budget support to write off their losses, but the scale is miniscule compared to food subsidy, and benefits do not percolate down to producers or gatherers.

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Producers’ political influence

Four states, Punjab, Haryana, Uttar Pradesh, and Andhra Pradesh, have always exercised a great deal of influence over central government. In general, surplus farmers have a strong pressure lobby in all political parties.

Forest dwellers and tribals are politically least important in Indian politics, and are exploited by bureaucracy, moneylenders and traders. These groups control local power, and benefit from the schemes meant for tribal welfare. Tribals are confined to the sidelines in the state’s political life; while they carry heavy weights in their daily lives, they carry little or no weight in the offices, agencies and Assemblies where, without their active or informed consent, their lives are often shaped.

Regions producing marketed surplus

Agricultural surplus regions, with less poverty and high degree of awareness.

Agriculturally deficit regions with dispersed population, high degree of poverty and little awareness about government schemes.

Insurance against loss in production due to natural calamities, such as drought or floods

Postponement of collection of government dues, and often remission. Debt waiver scheme introduced in 2007.

Despite extreme fluctuation in production, declaration of famine and drought conditions or starting of relief works is not linked to low Production of NTFPs, though in many places almost half of forest dwellers’ income is derived from forest produce.

Tenure on producing lands

Land under private ownership, with security of access and operation.

NTFPs mainly come from CPRs, including forest lands, where peoples’ rights of access are vague and subject to many formal and informal controls.

Controls on movement and storage

No such control on movement within state, and no license required for farmers for storage. Controls on inter-state movement have been lifted in February 2002.

Apart from controls on collection, there are several controls on movement, storage and sale, even within a district. The general impression is that all NTFPs, even occurring on private lands, belong to government and gatherers are only entitled to wages from collection.

2.3 Issues and Challenges:

The Minor Forest Produce (MFP), also known as Non Timber Forest Produce (NTFP), is a major source of livelihood and provides essential food, nutrition, medicinal needs and cash income to a large number of STs who live in and around forests. However, MFP production is highly dispersed spatially because of the poor accessibility of these areas and competitive market not having evolved. Consequently, MFP gatherers who are mostly poor are unable to bargain for fair prices.

Some major issues includes:

Fluctuation in production – Annual fluctuations of most NTFP commodities in production vary by a margin of three to four hundred percent, leading to wide variation in supply. This is in sharp contrast to agricultural commodities where variation in production in the State rarely exceeds 20 to 50 per cent of the normal.

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Lack of uniformity - NTFPs are natural products and can therefore never be totally uniform in their characteristics. The size, shape, colour and other physical properties depend upon factors like rainfall, temperature, moisture etc. which varies from year to year and from location to location. This is one of the major disadvantages in marketing as the consumers want steady supply and uniform quality. This is particularly relevant for the industrial user.

Seasonal collection - Most NTFPs are collected seasonally, though they may be demanded throughout the year. Selling them locally during flush season creates excess of supply over local demand, thus depressing prices. The short season becomes even a bigger constraint when it coincides with the monsoon in India, as drying of the products and its transportation becomes a serious problem.

Low volumes - The NTFPs in the forest are found in a scattered form and the quantity available from far off places often makes collection and transport uneconomic. The low volume of NTFP reduces the bargaining power of the producers resulting in lower returns.

Fluctuating demand – The demand for these products fluctuates widely, as much depends on the production of its substitutes and the changing export environment. Sometimes it is to the advantage of primary gatherers, leading to many traders paying a high price, but often a combination of uncertain production and equally uncertain demand works to the disadvantage of the gatherers.

Competition with synthetic substitutes - With the development of synthetics for various commodities, many of the traditional NTFPs have lost their market or have to face stiff competition with them, and with domesticated species. For example, compared to the non-edible oils available within the forests, the imported palm fatty is cheaper, having been planted extensively in Malaysia and Indonesia.

Exports – Some NTFPs that are primarily exported are highly susceptible to international demand and prices. This may lead to over-harvesting or a price crash as a result of boom and bust syndrome. Indian shellac and rubber went through this cycle in recent times.

Nature of the actors involved Poverty of gatherers - Most forest extractors are poor, chronically indebted to middlemen or landowners, and are thus not in control over their labour or other terms of exchange. Thus underdeveloped rural credit markets and extreme poverty influence the disposal of NTFPs at a low price.

Gender dimension - The above mentioned problems become more acute for women entrepreneurs. Burdened with other roles within the family traditionally assigned to women, their ability to look for far-off markets is restricted. The small size of production further aggravates the problem forcing them into a vicious cycle of a small market, low production and (leading to) small surplus.

Too many intermediaries – There is a long and vertical chain between primary gatherers and end-users. There are village level traders who work for market based commission agents or wholesalers, who would then supply to other wholesalers outside the state. For medicinal herbs, the share of the gatherers in the final price in most of the cases is less than 33 per cent, and often as low as 10 per cent. Despite the large number of middlemen, gatherers do not have the choice of many intermediaries. In a competitive and efficient system there should be a choice of several buyers.

Nature of buyers - The intermediaries are capable of maintaining a stronghold in the marketing network due to their ability to meet immediate needs of the primary gatherers. They offer quick and timely credit, make quick payment and also have a good network of procurement at the door step of the producers. A combination of factors such as, gatherers’ lack of knowledge of market price, poor marketing structure, poverty and impoverishments of the gatherers, ineffective state-agencies also strengthen the middlemen’s hold. Furthermore, poor communication and transportation facilities, highly segregated markets and unequal bargaining powers between buyers and sellers makes the situation more profitable for middlemen.

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CHAPTER 3

3.1 Study Objective: The overall objective is to study the value chain of medicinal plant

products (Amla- Emblica officinalis, Bahada- Terminalia belerica, Harida- Terminalia

chebula, Dhatki flower –Woodfordia fruticosa, Talamuli- Curculigo orchioides, Bhuikaharu-

puraria tuberosa, Satavari- Asparagus racemosus) promoted under the community based

microenterprises through Dabur - Baitarani Initiative.

• Analysis of cost at different stages under the existing Value Chains.

• Comparative analysis of competing incomes and other local opportunity costs.

• Analysis of institutional arrangements and stakeholders in the existing value chain.

• Recommendation for enhancing efficiency of value chain by optimizing cost and

Institutional arrangements.

3.2 Methodology:

Data collection:

Primary data collection: Primary data was collected from different sources like primary NTFPs

collector, village SHGs, aggregating SHGs, cluster SHGs by using different Data collection tools as

follows

Focus group discussion: it was conducted at aggregation SHGs as well as at village SHGs to

obtain qualitative information regarding this year collection, different issues (infrastructure finance, processing etc.), further improvement & the information regarding different sources of

collection of medicinal NTFPs.

Questionnaire survey: The questionnaire survey was conducted with primary medicinal NTFPs

collector and with village SHGs which includes open ended and semi-structured questions for

obtaining both qualitative and quantitative data regarding cost analysis, other opportunity income, processing knowledge etc.

Key informants: some information was also collected from Local traders, Local baidya, other

Govt. And non govt. Organisation those are involved in NTFPs trading DFO of 6 forest division.

The main objective was to collect data regarding current market price, MSP of desired medicinal

NTFPs, medicinal properties, harvesting period, quality processing etc.

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Observation: During whole process of field survey some other information was collected by

directly observing the informants and it was noted down under observation section.

Secondary data collection: secondary data was collected from BATARANI INITIATIVE,

from different literature published on medicinal NTFPs and from field staff (CRP, DRP).

Sample Analysis:

Sampling Technique: For data collection Purposive and Snow ball method was used. Two

Potential Aggregation point from each forest division (Six forest divisions) was taken for survey &

3 village SHGs from each aggregation point was included for study. Names of primary collectors

were collected from village SHGs to conduct interview.

Sample Size: sample size of total 120 were taken from six forest divisions.By using sample size

calculator & Randomizer (for serial number of primary collector).

State ODISHA

No. of forest divisions 6 – Koraput, Deogarh , Bonai , Baliguda,

Rayagada , Parelakhemundi

No. of Aggregating points 12

No. of SHGs 24

No. of PCs 120

No. of villages 20

• Geo-physical background of the study area:

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For the study of six medicinal plants products a total of six forest divisions were taken namely

– Baliguda in Kandhamal district, Bonai in Sundergarh district, Deogarh district,

Parelakhemundi in Gajapati district, Muniguda in Rayagada district, and Koraput district.

The red marks in the Odisha map shows the six forest divisions where the medicinal NTFP project is going on through Dabur- Baitarani Initiative.

CHAPTER 4

4.1 SOCIO – ECONOMIC BACK GROUND:

For the study a total number of 120 samples

were taken from six divisions of areas under

study. It includes 84 female’s collectors

i.e.70% and 36 male collectors i.e. 30%. The

samples so collected includes both individual

collectors who are not a member of any SHG

and collectors who are members of SHGs.

Age distribution of female collectors:

Out of 84 female collectors 44 collectors are

ages above 60 i.e.53%, means more than half. Whereas 21 members i.e. 25% lies in between

51-60. And 12 members i.e. 14% lies between

41-50 and only 8% i.e. 7 members are involved

as collectors. So it is found that females

above 60 years of age are involved more.

Age distribution of male collectors:

Out of 36 male collectors 7 members i.e.

19% are aged above 61 years. Which

different in case of female collectors. 33 %

i.e. 12 members lies in between 51-60. And very similar i.e. 31 % lies in between 41-50 age. And only 17% i.e. 6 are aged between 30-40. So the collectors are more between 40 to 60

years age not similar to that of female collectors.

8%14%

25%53%

30-40

41-50

51-60

61-above

67%

33%PC

member of SHG

30%

70%

Gender ratio

male

female

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Ratio of Primary collectors and members of SHGs

Out of total of 84 female collectors 67% i.e. 56 are

found to be not a member of any SHG i.e. they are

individual primary collectors. Whereas only 33% i.e. 28 members are a members of SHG. So it can be

concluded that maximum collectors are individual collectors.

CHAPTER 5

5.1 COST ANALYSIS: This chapter includes some vital findings related to cost of seven

medicinal NTFPs at different stage in existing value chain. Different stages such as

input cost at primary collector level, Input cost at village SHGs and input cost at

aggregation point was analyzed from the quantitative data collected during field

survey. conclusion was mainly drawn from the different value added cost such as

purchase price of the raw NTFPs, Labor charges for collection and processing of the NTFPs, Other charges like firewood, tools etc. required for conversion of raw product

to desired semi-finished product, Transportation charges which include both internal

and external transportation, input cost in shorting and grading (which includes cost of

gunny bag, thread etc.).It is worth to take into account the revenue generated from

1 kg of each product to analyses the net margin from 1kg each medicinal NTFPs. As

for different product source of collection, processing method and mode of

transportation are different which affect the input cost as well as the net margin so

cost analysis for different product was done by taking respective input cost to give a fair understanding.

17%

31%33%

19% 30-40

41-50

51-60

61-above

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5.2 Cost analysis for dhatki (woodfordia fruticosa) at different stage of existing value chain

At primary collector level: At primary collector level the different activities involved such as collection of the raw flower from the forest, drying of the flower, rough packaging and internal transportation (transportation from primary collector to village SHGs or to aggregation point).Depending upon the type of product primary collector gives and number of activities involved during processing the price is decided accordingly. Mainly primary collectors gives product in 3 form such as raw, semi-finished and in finished form.

Case-1(when primary collector gives raw flower): most of the primary collector prefer to give raw flower as there is little value addition in processing. In this mode the collector has to collect raw flower from the forest and directly gives to SHGs. So the input cost here mainly are labor cost for plucking and transportation charge.

Man days: A primary collector can collect maximum 5 kg in 4 hour on an average i.e. 1.25 kg per hour.

Transportation: on an average a primary collector incur 0.5 Rs. /kg in transportation on a radius of 5 km from traded point (may be a aggregation point or a village SHGs

ACTIVITY Input cost(in Rs) man days 17.95

Transportation 0.5 Table: showing input cost for 1kg of raw dhatki flower given by primary collector. (Man days was taken as per unskilled labor charges which is 150/8 hr. as NTFPs collectors are unskilled labor) Profit in 1 kg raw dhataki flower:

3%

97%

cost distribution for 1kg Raw flower

- Transportation - Man days

20 | P a g e

Revenue 10 Man days 18.75

transportation 0.5 Net profit/Loss -9.25

Above table shows that primary collector incurring loss of Rs 9.25 in trading of 1 kg of raw flower

2. Case-2(when primary collector gives semi-finished flower) Here primary collector gives semi-finished flower. In this mode the collector has to collect raw flower from the forest and keep it under partial sun light for one days gives to aggregation point. Different input cost here are as follows Man days: A primary collector can collect maximum 5 kg in 4 hour on an average i.e. 1.25 kg per hour. Transportation: on an average a primary collector incur 0.5 Rs/kg in transportation on a radius of 5 km from traded point (may be a aggregation point or a village SHGs

Weight Loss: There is a 30% weight loss i.e. 300gms in 1 kg raw flower when it is semi dry.

ACTIVITY Input cost (in Rs.) man days 18.75

Transportation 0.5

Profit in 1 kg raw semi-finished flower: Revenue 15

Man days 18.75 transportation 0.5 Net profit/Loss -4.25

3%

97%

Chart distribution in semi finished flower

- Transportation

- Man days

21 | P a g e

Case-3(when primary collector gives finished product):

This is another mode where primary collector gives finished product i.e. completely dry flower. Here some activities like collection, complete drying, rough stitching and transportation occurs

Man days: A primary collector can collect maximum 5 kg in 4 hour on an average i.e. 1.25 kg per hour. Transportation: on an average a primary collector incur 0.5 Rs/kg in transportation on a radius of 5 km from traded point (may be a aggregation point or a village SHGs

Weight Loss: There is a 35% weight loss i.e. is 350gm in 1 kg raw flower when it is completely dry (2-3 days on partial sun light).

ACTIVITY Input cost(in Rs) man days 18.75

Transportation 0.5

Profit in 1 kg processed Dhatki flower:

Revenue 17 Man days 18.75

transportation 0.5 Net profit/Loss -2.5

22 | P a g e

At Aggregation point: At aggregation point different activities involved such as drying of the flower, shorting, grading final packaging. Depending upon the type of product primary collector gives the price is decided accordingly. Mainly primary collectors gives product in 3 form such as raw, semi-finished and in finished form.

ACTIVITY COST IN INR Purchase price 17 Revenue 24 Input cost 4.25 NET PROFIT 2.75

5.3 For Harida:

1. At Primary Collector Level: Mainly primary collector gives Harida in two forms i.e. raw and processed. So the input cost vary accordingly. For Raw: The MSP for raw price fixed by Dabur is Rs. 6 /kg. The input cost for raw involve like collection from forest and primary level transportation to SHG.


Transportation 0.5

Revenue

Rs. 6

Input cost Rs. 9.87

Net loss Rs. 3.87

For processed form:

3%

97%

cost distribution in 1 kg processed flower - Transportation - Man days

23 | P a g e

MSP for processed product at primary collector level is Rs. 17 /kg Input cost includes collection, de-seeding, drying and primary transportation. When the processed product is given to the Aggregation point.


Transportation 1.0

Revenue

Rs. 17

Input cost Rs. 19.75 Net loss Rs. 2.75

2. At SHG level: In this stage there is also value addition in the form of de-seeding, transportation and rough packaging. The MSP at SHG level is Rs. 20.50 /kg including weight loss i.e. if SHG will buy 2 kg of raw worth price Rs. 12 they will get Rs. 20.50. There is 50% After final drying and de-seeding.

ACTIVITY Input cost(in Rs.) man days 8

Transportation 1.0 Other cost /wt. loss 8.50

Revenue

Rs. 20.50

Input cost Rs. 17.50 Net loss Rs. 3. 50

3. At Aggregation point: In this stage mainly value addition is done in the form of sorting, grading, packaging. The MSP at Aggregation point is Rs.26.50

ACTIVITY Input cost (in Rs.) man days 3

Transportation - Other cost /wt. loss Gunny bag , Stitching

1.25

24 | P a g e

Purchase price Rs. 20.50 Revenue

Rs. 26.50

Input cost Rs. 4.25 Net profit Rs. 1.75

5.4 For Bahada:

At Primary Collector Level: Mainly primary collector gives Bahada in two forms i.e. raw and processed. So the input cost vary accordingly.

For Raw: The MSP for raw price fixed by Dabur is Rs. 5.50/kg. The input cost for raw involve like collection from forest and primary level transportation to SHG.


Transportation 0.5

Revenue

Rs. 5.50

Input cost Rs. 9.87

Net loss Rs. 4.37

For processed form: MSP for processed product at primary collector level is Rs. 15 /kg Input cost includes collection, de-seeding, drying and primary transportation. When the processed product is given to the Aggregation point.


Transportation 1.0

Revenue

Rs. 15

Input cost Rs. 19.75 Net loss Rs. 4.75

25 | P a g e

At SHG level: In this stage there is also value addition in the form of de-seeding, transportation and rough packaging. The MSP at SHG level is Rs. 17 /kg including weight loss i.e. if SHG will buy 2 kg of raw worth price Rs. 11 they will get Rs. 17. There is 50%

After final drying and de-seeding.


Transportation 1.0 Other cost /wt. loss 6

Revenue

Rs.17

Input cost Rs.15 Net profit Rs.2

At Aggregation point: In this stage mainly value addition is done in the form of sorting, grading, packaging. The MSP at Aggregation point is Rs.23.50



1.25

Purchase price Rs.17 Revenue

Rs.23.50

Input cost Rs.4.25 Net profit Rs.2.25

5.5 For Amla:

At Primary Collector Level: Mainly primary collector gives Amla in two forms i.e. raw and processed. So the input cost vary accordingly. For Raw: The MSP for raw price fixed by Dabur is Rs.10/kg. The input cost for raw involve like collection from forest and primary level transportation to SHG.

26 | P a g e


Transportation 0.5

Revenue

Rs.10

Input cost Rs.8.50

Net profit Rs.2.50

For processed form: MSP for processed product at primary collector level is Rs.40 /kg Input cost includes collection, de-seeding, and steaming, drying and primary transportation. When the processed product is given to the Aggregation point.


Transportation 1.0 Steaming / fuelwood 4

Revenue

Rs.40


4. At SHG level: In this stage there is also value addition in the form of de-seeding, transportation and rough packaging. The MSP at SHG level is Rs.45 /kg including weight loss i.e. if SHG will buy 2 kg of raw worth price Rs.20 they will get Rs.45. There is 75% wt. loss After final drying and de-seeding.


Transportation 1.0 Other cost /wt. loss 16

27 | P a g e

Purchased price

Rs.20

Revenue Rs.46 Input cost Rs.25 Net profit Rs.1

5. At Aggregation point: In this stage mainly value addition is done in the form of sorting, grading, packaging. The MSP at Aggregation point is Rs.52/kg



1.25

Purchase price Rs.46

Revenue

Rs.52

Input cost Rs.4.25

Net profit Rs.1.75

5.6 Satavari:

1. At primary Collector: As this product is rarely available so primary collector gives in the raw form or processed form to Aggregation point. For Raw: The input cost involved in activities like collection and transportation. One can maximum collect 8 kg in 8 hrs. MSP for raw is Rs.30/kg


Transportation 1 Other cost /wt. loss Gunny bag , Stitching

-

Purchase price - Revenue

Rs.30

Input cost Rs.19.75

28 | P a g e

Net profit Rs.10.25

For processed at Primary collector level: The different activities involved collection, peeling of outer skin, transportation. The MSP is Rs.96/kg



-

Purchase price -

Revenue

Rs.96


2. At Aggregating point: If the Aggregating point receives raw

Purchase price 30

Revenue

Rs.26


5.7 Bhuikakharu:

This product generally given to the Agg.point in the processed form only. The different value additions are collection, chopping and drying. So MSP for processed product is 40 at primary collector level and Rs.52 at Agg. Point.

At Aggregation point: The MSP at Agg. Point for processed is Rs.46



-

Purchase price -

Revenue

Rs.40


29 | P a g e

Cost flow chart for Dhatki:

Cost flow chart for SATAVARI

FLOW CHART FOR TALAMULI

30 | P a g e

CHAPTER 6

6.1 Pictorial representation of Overlapping of medicinal NTFPs with other

activity/product:

Medicinal NTFPs Overlapping activity/product

1. HARIDA

Mahua

31 | P a g e

2. BAHADA

MAHUA

3. AMLA

Maize

4. DHATKI FLOWER

Hill broom

32 | P a g e

5. SATAVARI

MGNREGS

6. BIDARIKANDA

Siali leaf

6.2 TABLE: Other opportunity cost & competing incomes.

FOREST

DIVISION

OVERLAPPING

MEDICINAL PRODUCT

OVERLAPPING

PRODUCT/

AVTIVITY

INCOME FROM

OTHER

OPPORTUNITY

(IN INR)

BONAI HARIDA , BAHADA ,

SATAVARI

MGNREGS ,

MAHUA

5100

DEOGARH HARIDA , BAHADA , DHATKI MRNREGS,

MAHUA

5100

KORAPUT DHATKI HILL BROOM 2500

BALIGUDA HARIDA , BAHADA , AMLA ,

SATAVARI , BHUIKAKHARU

MGNREGS ,

TURMERIC

5000

RAYAGADA AMLA , BHUIKAKHARU,

BAHADA

COTTON 7000

PARELAKH

EMUNDI

AMLA , HARIDA , BAHADA, MAIZE 9000

33 | P a g e

6.3 Finding:

The above table shows the other opportunity cost & competing income with medicinal NTFPs during

the NTFP season from October to April for the six forest divisions.

Among all the other activities the MGNREGS has the maximum overlapping in many divisions. Mainly the Bonai and Deogarh division have high opportunity for MGNREGS .So people of these divisions are

more focused on MGNREGS in the NTFP season as they get more money out of the MGNREGS work.

At least there is 30 days of working overlapping with NTFP during which they get around Rs. 5100 from

MGNREGS @170/day labour charge. Due to this there is a decline in medicinal products in the

subsequent season.

In Koraput division generally there is no MGNREGS work during the overlapping NTFP season but apart

from it Hill broom collection is done during these period. But as the income is low from hill broom it

rarely affects the medicinal NTFP collection.

In Rayagada division during the medicinal NTFP period people are engaged in cotton cultivation. But

as there is no complete overlapping so people do go for medicinal NTFP collection but for less number

of days. And in Parelakhemundi division the maize cultivation is a dominating activity which is being done at huge scale so people are very much busy with maize cultivation as it is their primary source of

income. There is very less NTFP collection from this division.

In case of Baliguda division which is the leading contributor , there is very less other opportunity like

MGNREGS but turmeric cultivation is an overlapping activity but the turmeric cultivation have few

activities during the medicinal NTFP period . So people simultaneously go for NTFP collection. Last but not the least the attitude of the people also matters.

CHAPTER 7

7.1 INSTITUTIONAL ARRANGEMENTS:

In this existing model the various actors are the Individual

Primary collectors, SHGs at village level, SHGs at the

Aggregation point, CRP who is responsible to take care of the

Activities at the different levels, DRP who is the responsible to

Institutional arrangements are the policies, systems, and processes that organizations use to legislate, plan and manage their activities efficiently and to effectively coordinate with others in order to fulfil their mandate.

34 | P a g e

Monitor the activities at division level. A total of 10 villages which are under each CRP has been selected

for the procurement of medicinal products. Basically a division has 4 to 6 CRP who are working under

DRP of each division. Village level SHGs & the Aggregating point SHGs are responsible to carry out

further value addition in the value chain. And the

Aggregating point is the final value addition point in the chain.

Although the Institutional arrangement varies from division

to division because of unequal geographical scenario in each

divisions.

7.1Institutional Arrangement in Koraput

Division:

Source of collection: In this division only dhatki flower is procured with two major aggregating point as Kanjariguda & Lataput.

Dhatki flower are easily found in and around the road side and hence the accessibility is high

for dhatki. As a result there is more collection at individual level i.e. primary collectors

irrespective of being member of SHG. Further the less or very few value addition activity to

dhatki attracts more people. In the year 2015-16, total volume processed dhatki collected is

16 ton. Out of which 50% collection were contributed by the individual primary collector. 31%

i.e. 5 ton has been collected from the local trader which is a major source after primary

collectors. The contribution from the village SHG is mere 3%.

Whereas that of other SHG the collection is 16% i.e. 2.5 ton.

Involvement of stakeholders:

50%

3%16%

31%

Quantity

primarycollector

vill. SHG

other SHG

Local trader

cluster ponit

Agg. point

SHG

primary collector

35 | P a g e

Primary collector

During the field survey a total of 30 samples were taken for the dhatki flower collectors. It is found that maximum i.e. 50% primary collectors prefer to give the dhatki as in the form of semi-processed. Followed by processed with 33% and only 17% were interested to give in the form of raw to the SHGs. As dhatki includes very few or rare processing activity & less time consuming activity. So mostly collectors are interested to give dhatki either in the form of processed or semi-processed.

SGH involvement: From the survey it is found that at village & aggregating point there not total or equal participation of members in the activity. The variation of participation is from 50% to 80% in the division. This pattern forced at the points where the collection is huge to involve the labors for carrying out the value addition.

Target villages: A total of 10 villages were chosen for the procurement of dhatki for each

aggregating point i.e. Kanjariguda & Talachampi. For Kanjariguda out of 10 villages

procurement was from 8 target villages and for Talachampi procurement was done from 7

villages.

The collection from all the targeted villages cannot happens due to reasons

like lack of awareness of collectors,

involvement of targeted villages in

some unscheduled scheme from Govt. /

Non- Govt. works in the village. Which

Distract people to involve in NTFP

collection. Sometime reason may be like

communication gap from the resource person in the peak season of the NTFP

product.

Harvesting pattern: Dhatki flower is a shrub with a height of 5 – 6 feet. And it is easy accessible as it is available near the road side also. The harvesting is done basically by plucking the flowers from the branches. There is overall less difficulty in procurement making it a demanding activity.

Product Knowledge: For Dhatki as people are doing this activity since last 5 years and so therefore the flower blooming period and the harvesting period is well known for most of the people who are involved in this activity.

17%

50%

33%

no. of primary collectors

raw

semi-processed

processed

0

2

4

6

8

10

12

Kanjariguda talachampi

Target vill. procured vill.

36 | P a g e

As per the filed survey for 30 members which includes both individual & member of SHG. It is found in case of primary collectors 90% are aware of the harvesting procedure. At the SHG level similar stats were found. And at the Aggregating SHG also members of SHGs are well aware with the value addition activities.

Over all it is found that more people are preferring to give semi-processed or processed product. As it includes less value addition activity. Even though people are giving in these forms still at the aggregating point activities like sorting & grading are to done before final packing with the help of labor in case the volume is huge.

Financial Arrangements: The mode of payment & duration varies for each stakeholder in the value chain. It is highly recommended to the SHGs to give instant payments to the primary collectors. But in case of koraput division most of the primary collectors prefer to take daily use items like salt, oil, sugar, soap etc. from the SHGs instead of hard cash. This is a very rare practice which only seen in this division.

For the village level the SHG fund is used to carry out the purchasing activity of dhatki in different forms at different prices varying from Rs.10 – 17/kg depending on the moisture & quality.

Table showing the mode & duration of payments to stakeholders in the value chain.

Stakeholder Mode of payment Duration of payment

Primary collector Hard cash / Bartered Instant

SHG To Account of SHG 35 days

Aggregating point To Account of SHG 30 days

Transportation: Basically transportation in this value chain includes primary i.e. internal

transportation which is from the primary collector and SHG. In the second stage the product moves

to the Aggregating point through intermediate mode of transportation. And finally to the Cluster point from the Aggregating point.

37 | P a g e

Some mode of transportation: To move the product from primary collector to the SHG point

the basic modes are Headload & 3-wheeler. The transportation charge is bearded by the

primary collector.

In the second stage i.e. to move the product from SHG to Aggregating point basic mode of

transportation is 4- wheeler as the volume is huge. The transportation charge is bearded by the Aggregating point.

Physical Infrastructure:

Physical Infrastructures plays a vital role in the value

chain. It ensures the quality of the product.

Product like Dhatki are having medicinal properties

so the physical storage is an important aspect in

keeping the medicinal properties intact.

Physical Infrastructure at Primary collector level:

For Dhatki as the product is bulky in nature so collectors gives it to the SHGs after initial drying &

Sorting. Dhatki remains for a maximum of 3 days with them. However drying is an issue at primary level as they lack sufficient space & mat for drying.

Physical Infrastructure at vill. SHG level:

Generally for storing Dhatki at SHG level the VSS house is used as storing point which is well

furnished. But there is a chance of loss of Dhatki if the moisture content is higher than the standard.

So storing for long time without proper drying & moisture checking is a threat & can leads to high

loss. Sometime the volume is much more so that should be transported to Aggregating point in

appropriate time.

• Primary collector

• SHG

primary transport

ation

Aggregating point

Intermediate

transportCluster point

Finaltransport

ation

38 | P a g e

Physical Infrastructure at Aggregating point level:

For Dhatki the Aggregating point like Kanjariguda has a dedicated storage house with drying yard facility. Maximum product reaches directly to this point. So the volume becomes huge and created

difficulty to store.

But in case of Talachampi the VSS house is used for storing and it is quite sufficient for the

aggregated volume to store. But the lack of drying yard and drying mat hampers the quality as well

as sometimes it leads to loss.

Product mobility :

Dhatki flower

is

given

to the

SHG

by the

primary collectors in three forms. I.e. raw, semi-finished/dry & finished. The cost varies from

Rs. 10- 17 per kg. The raw Dhatki after the collection can be given after shading in sunlight

for one day. The semi-dry form dhatki is shedder in the sunlight for 3 day. And the finished dhatki needs 7 days which includes shading for 4 days and separating of leaves and other

foreign particles from it before giving to the SHG.

In case of SHG the no. of days similarly depends on the form of the dhatki and accordingly

value addition is done before packaging.

In the Aggregating point the dhatki comes in fully finished form from the SHG and very few

value addition and activities are to be done like sorting and re-packaging. But still being the

finished product there is a loss of 8 – 10 % in per bag of 40kg. The lifting is done in around

25 days after packaging in being stored in the Aggregating point. Product Blockage: For Dhatki as the volume is huge so due to lack of storage at some

points the product becomes unable to pass to the next level which leads to delay in further

value addition.

Primary collector village SHG Aggregating

point Cluster point

39 | P a g e

Figure showing product mobility through different

stages in the value chain

7.2 Institutional Arrangement in Deogarh Division :

Source of collection:

In this division mainly harida and Bahada is procured with two major aggregating point as

chhuribahal & luimura. There is more collection at individual level i.e. primary collectors

irrespective of being member of SHG. In the year 2015-16, total volume of processed product

collected is 3.752 metric ton. Out of which 38% collection were contributed by the individual

primary collector. 22% has been collected from the village SHG which is a major source after

primary collectors. The contribution from the village local is 22%.Whereas that of other SHG

the collection is 16%


Primary collector

During the field survey a total of 15 samples were taken for the primary collectors. It is found that maximum i.e. 53% primary collectors prefer to give raw product in this division. Followed by processed with 27% and 20% were interested to give in the form of semi-processed to the SHGs. Main reason for giving raw product in a huge volume is that primary collector is not willing to do processing due to lack of processing and deseeding takes more time

SGH involvement: From the survey it is found that at village & aggregating point there not total or equal participation of members in the activity. The variation of participation is from 60% to 80% in the division. This pattern forced at the points where the collection is huge to involve the labors for carrying out the value addition. As a result at aggregation point they are forced to input labor for processing which gives low margin as labor charge is very high.

38%

24%

16%

22%

Quantity

primarycollector

vill. SHG

other SHG

Local trader

53%20%

27%


raw

semi-processed

processed

40 | P a g e

Target villages: A total of 10 villages were chosen for the procurement of Harida & Bahada for each aggregating point i.e. chhuribahal & luimura. For luimura out of 10 villages

procurement was from 7 target villages and for chhuribahal procurement was done from only

5 villages.

The collection from all the targeted villages cannot happens due to reasons like lack of

awareness of collectors, involvement of targeted villages in some unscheduled scheme from

Govt. / Non- Govt. works in the village. Which

Distract people to involve in NTFP collection. Sometime reason may be like communication

gap from the resource person in the peak season of the NTFP product.

Harvesting pattern: Both harida & Bahada belong to myrobalan family with a height of 20 – 35 feet.it is very tough to pluck by climbing as most of the primary collector are women.so they mainly collect after natural fall so on an average one can collect maximum 6-7 kg per day

Product Knowledge: As most of the primary in this division are new to this business there is a lack of product knowledge regarding actual harvesting period, processing etc which is hampering the procurement as well as there is a threat to product damage

As per the filed survey for 40 members which includes both individual & member of SHG. It is found in case of primary collectors only75% are aware of the harvesting procedure. At the SHG level similar stats were found. And at the Aggregating SHG also members of SHGs are well aware with the value addition activities.

Over all it is found that more people are preferring to give raw & semi-processed product. As it includes less value addition activity. Even though people are giving in these forms still at the aggregating point activities like sorting & grading are to done before final packing with the help of labor in case the volume is huge.

Financial Arrangements: There is a serious issue regarding payment in this division. Most of primary collector in this division are not getting actual MSP due to some internal reason and lack of communication. At SHGs level due to lack of sufficient fund there is a delay in processing due to which there is a weight loss and product damage. For both harida and bahada primary collector is getting a price of minimum 4 to maximum 10/kg of raw, but at what they are getting this MSP is not clear

0

2

4

6

8

10

12

Talachampi chhuribahal


41 | P a g e



Primary collector Hard cash Instant(in some cases they are not getting instant money)

SHG To Account of SHG 35 days after delivery

Aggregating point To Account of SHG 30 days after lifting

Transportation: Basically transportation in this value chain includes primary i.e. internal transportation which is from the primary collector and SHG. In the second stage the product

moves to the Aggregating point through intermediate mode of transportation. And finally to the

Cluster point from the Aggregating point.

Some mode of transportation: To move the product from primary collector to the SHG

point the basic modes are Headload & 3-wheeler. The transportation charge is bearded by the primary collector.


transportation is 4- wheeler as the volume is huge. The transportation charge is bearded by

the Aggregating point.


Physical Infrastructure at Primary collector level: As most of the processing are done by

manually there is more physical labour which is hampering the processing. Mainly they are using

wooden stick for processing by which there extra weight loss. For drying there is no drying mat so

that there is always a threat of foreign particle contamination.

Physical Infrastructure at vill. SHG level: Lack of drying yard and store house is a big problem

at SHG level due to which they are giving raw product to aggregation point

42 | P a g e

Physical Infrastructure at Aggregating point level: At chhuriabahal there is a well-furnished

drying yard and store which is helping in processing but at luimura which is a major aggregation point

due to lack of store there is a huge damage of product due to rodent attack.

Product mobility: mainly primary collector gives raw or processed product to SHGs after 3-

4 days of processing then at SHG level further value addition occurs and product moves to

aggregation point where shorting, grading and final packaging are done. From here product

is lifted to Dabur after 25-30 days. From Haat and local trader product mainly comes to aggregation point which is mainly in raw from and it is processed within 4-5 days.

Product Blockage: It is a big issue in this division as primary collector gives most of the

product in raw form it is supposed to be processed at SHG point within 2-3 days as these

NTFPs are highly perishable. But due to lack of sufficient fund and man power (as there is

lack of participation of SHG member in some SHGs) product is stucked for more than 10-15

days resulting in damage and medicinal value also decreases which has to be taken care.


• SHG

primary transport

ation

Aggregating point

Intermediate


Finaltransport

ation

43 | P a g e

Figure: The product mobility trend through different levels and points.

7.3 Institutional Arrangement in BONAI Division :

Source of collection: The unique feature of this division is having potential for all six medicinal NTFPs .But due to lack of interest of people, lack of information and scope for other income procurement is very less. Mainly source of collection are like primary collector, local haat in this division

In this division in the year 2015-16, total volume of

processed product collected is 1.635 ton. Out of which 47% collection were contributed by the

individual primary collector. 6% has been collected

from the local trader.


Primary collector

During the field survey a total of 15 samples were. It is found that maximum i.e. 73% primary collectors prefer to give raw product. Followed bysemi- processed with 14% and only 13% were interested to give in the form of processed to the SHGs

SGH involvement: From the survey it is found that at village & aggregating point there not total or equal participation of members in the activity. The variation of participation is


point Cluster point

47%

12%6%

29%

6%

Quantity

primarycollector

vill. SHG

other SHG

Local trader

73%

14%13%


raw

semi-processed

processed

44 | P a g e

from 50% to 80% in the division. This pattern forced at the points where the collection is huge to involve the labours for carrying out the value addition.

Target villages: A total of 10 villages were chosen

for the procurement of dhatki for each aggregating

point i.e. Jamdhar & amaphali. For jamdhar out of

10 villages procurement was from 4 target villages

and for amaphali procurement was done from 5

villages.

The collection from all the targeted villages cannot happens due to reasons like lack of

awareness of collectors, involvement of targeted villages in some unscheduled scheme from

Govt. / Non- Govt. works in the village. Which distract people to involve in NTFP collection.

Sometime reason may be like communication gap from the resource person in the peak

season of the NTFP product. Most of the village SHGs in this division are non-functional and

inactive so that procurement was not possible from target village.

Harvesting pattern: mainly in this division harida, bahada, dhataki and satarvai were collected. Product Knowledge: lack of product knowledge is a serious issue in this division.most of the primary collector are giving immature raw product due to which product loss is more.in amaphali aggregation point due to wrong processing of satavari there is a huge loss which results in loss in the business.

Financial Arrangements: The mode of payment & duration varies for each stakeholder in the value chain. It is highly recommended to the SHGs to give instant payments to the primary collectors. But in case of Bonai division primary collector are not getting instant money

For the village level the SHG fund is used to carry out the purchasing of product.



Primary collector Hard cash Instant(in some cases they are not getting instant money)

SHG To Account of SHG 35 days after delivery

Aggregating point To Account of SHG 30 days after lifiting


transportation which is from the primary collector and SHG. In the second stage the product

02468

1012

Jamdhar amaphali


45 | P a g e


Cluster point from the Aggregating point.


point the basic modes are Headload & 3-wheeler. The transportation charge is bearded by

the primary collector.




Physical Infrastructure at vill. SHG level: in most of SHGs there is no drying yard and tools. As

satavari takes more time for processing it is tough to do processing without tools as a result they are

forced to give raw product to aggregation point

Physical Infrastructure at aggregating point level: in Jamdhar aggregation point as SHG is not

participating all the processing are done by using labour and due to lack of proper drying yard and storage there is almost 8 quintal product loss this year which is a matter of concern. Amaphali

aggregation point same also facing same problem due to which product processing is hampering

Product mobility : in jamdhar aggregation point all the activities monitored by CRP as SHGs is

not functional.so due to lack of man power there is delay in product pulling from primary collector

and also delay in processing which resulting in product damage. at amaphali aggregation point

which has a great potential for satavari due to product blockage at primary collector level quality

of processed satavari is decresing because satavari need instant pilling after collection from forest

•Primary collector•SHG

primary transportation

Aggregating point

Intermediate


Finaltransportation

46 | P a g e


7.4 Institutional Arrangement in Baliguda division: This is one of the most ideal division

among all division. Product procurement is very good in comparison to other division. Division

has huge potential of harida, bahada and

amla .Two main source of collection are primary collector and village SHGs. .In the

year 2015-16, total volume of processed

product collected is 25.9metric ton. Out of

which 50% collection were contributed by the

individual primary collector. 13% has been

collected from the local trader. The

contribution from the village SHG is

25%.Whereas that of other SHG the collection is 12%.



During the field survey a total of 40 samples were taken for the primary collectors. More interestingly in this division 30% of total primary collector gives processed product as they get more profit in this and they are very familiar to this business

• SGH involvement: There is a very good participation among SHGs member in this division by which there is a smooth facilitation in processing. In siba aggregation point all the product are processed by SHGs


point Cluster point

50%

25%

12%13%

Quantity

primarycollector

vill. SHG

other SHG

50%20%

30%


raw

semi-processed

processed

47 | P a g e

member only with equal participation which is a best example of a healthy institution.

Target villages: A total of 10 villages were chosen for the procurement of dhatki for each

aggregating point i.e. sitapadi, siba and

sulamaha .Due to proper co-ordination among CRP and target village procurement

from target village was achieved. In

sulamaha aggregation point as most of the

primary collector are new there was a gap

between target village and procured villlage

Harvesting pattern: As most of the primary collector in this division are very much familiar with this business they have a very good knowledge regarding harvesting. So there is a pretty good product tapping of raw product from forest. Most of the collector collect from ground instead of plucking from tree as harida, bahada and amla are tall trees.

Product Knowledge: Most of the stakeholders in the core value chain of this division has good knowledge about actual season, processing .As study reveal in sitapadi aggregation point time taken by member for deseeding of 1 kg of harida is about 30 min where as in other division it is about 40-50 min which shows there core competency in processing

Financial Arrangements: in this division most of the primary collector getting instant price and actual MSP which is a good sign. Throughout the division primary collector got 6 rs/kg of raw harida.But real issue in this division is at aggregation point. In siba aggregation point as they are procuring a high volume they have to spend more money in purchaging,processing etc.but due to lack of adequate fund they are forced to take loan by which they are getting less profit from this business



Primary collector Hard cash Instant

SHG To Account of SHG 30 days


0

2

4

6

8

10

12

siba sitapadi sulamaha


48 | P a g e



moves to the Aggregating point through intermediate mode of transportation. And finally to

the Cluster point from the Aggregating point. in this division internal transportation i.e from

aggregation point to cluster point transportation cost is high which is a matter of concern.



the primary collector.


transportation is 4- wheeler as the volume is huge. The transportation charge is bearded by the Aggregating point.


Physical Infrastructures plays a vital role in the value chain. It ensures the quality of the product.

Physical Infrastructure at Primary collector level: This division has a unique distinction of

giving a fair volume of processed product by primary collector. So tools for processing like deseeding

for harida & bahada is most needed. Drying mat is another important thing which is to be provided

for keeping product isolate from foreign to ensure healthy product


• SHG

primary transport

ation

Aggregating point

Intermediate


Finaltransport

ation

49 | P a g e

Physical Infrastructure at vill. SHG level: As major part of processing are done at SHG they

must need processing tools, store house and weighing machine. Most of the SHGs lack this in this

division and they have to hire it by which input cost is increasing.


Physical Infrastructure at Aggregating point level: At siba aggregation point there is no

storing, drying yard and processing tools by which it is facing problem. Sulamaha division which is a

very cold region due to its geographical presence there is always a threat for product damage by

fungal attack due to moisture content in air so drying yard and storage house are must need equipment here.

Product mobility : in this division mainly product collected from primary collector and from

SHGs. Due to proper co-ordination and supervision by CRP there is a smooth facilitation in

product mobility.most of the raw product are delivered to SHGs within 2 days of collection and

from SHG it takes 8-10 days to move to aggregation point.At aggregation point final value

processing are done and product dispatched to Dabur.But here there is time gap in product

dispatch from aggregation point due to some internal reason which resulting in weight loss after

packaging by which it is affecting the net profit.


point Cluster point

50 | P a g e

7.5 Institutional Arrangement in Parelakhemundi Division :

Source of collection: This division has a very good

potential for amla. Harida and bahada.Due to institutional

problem, overlapping of season for cash crop like maize

there is a lack of interest for this business.

.In the year 2015-16, total volume of processed product

collected is 16.65 ton. Main source of collection are primary

collector and local traders and contribution from SHGs is

very low.

Involvement of stakeholders: There are very few primary collector in this division due to scope for other income like maize cultivation during this season.most of the SHGs are not preferring to do this business as a unit.so most of the product coming from primary collector.total 40 sample was taken for SHGs member in which 30 members are given product as individual and only 10 have given in SHGs

Target villages: A total of 10 villages were

chosen for the procurement of product for

manikpur aggregation point out of which product collected was only from 5 village

The collection from all the targeted villages cannot

happens due to reasons like lack of awareness of

collectors, involvement of targeted villages in some

unscheduled scheme from Govt. / Non- Govt.

works in the village. Which

Distract people to involve in NTFP collection. Sometime reason may be like communication

gap from the resource person in the peak season of the NTFP product.

Product Knowledge: most of the primary collector has good knowledge regarding seasonality, processing etc. Over all it is found that more people are preferring to give semi-processed or processed product. As it includes less value addition activity. Even though people are giving in these forms still at the aggregating point activities like sorting & grading are to done before final packing with the help of labor in case the volume is huge.

48%42%

10%

Quantity

primarycollector

Local trader

village SHGs

0

2

4

6

8

10

12

manikpur


51 | P a g e

Financial Arrangements: The mode of payment & duration varies for each stakeholder in the value chain. It is highly recommended to the SHGs to give instant payments to the primary collectors.one of the main issue in this division is regarding fund. As most of the SHGs giving loan to others for some other business like maize cultivation there is lack of fund for this NTFPs business by which they are unable to purchase from primary collector as a result primary collector are giving product to local traders by which they are not getting instant money.


transportation which is from the primary collector and SHG. In the second stage the product moves to

the Aggregating point through intermediate mode of transportation. And finally to the Cluster point

from the Aggregating point.


point the basic modes are Headload & 3-wheeler. The transportation charge is bearded by the primary collector.





Physical Infrastructures plays a vital role in the value chain. It ensures the quality of the product.

But in case of Talachampi the VSS house is used for storing and it is quite sufficient for the

aggregated volume to store. But the lack of drying yard and drying mat hampers the quality as well


• SHG

primary transport

ation

Aggregating point

Intermediate


Finaltransport

ation

52 | P a g e

as sometimes it leads to loss.in most of the SHGs and at aggregation point in this division there is

lack of drying yard.store house and weighing machine by which interest for doing this business is

decresing.

Product mobility: As found in our study most of the people in this division are doing maize

business and mainly they are taking loan from SHGs. So for this NTFPs business SHGs lacking

fund and they are unable to purchase product from primary collector by which most of the primary collector giving their product to local traders. From local traders product is coming to

aggregation point.


7.6 Institutional Arrangement in RAYAGADA Division :

Source of collection: This division has a very good

potential for Amla.As before this value chain they were

traditionally giving product to local traders with little value

addition

.In the year 2015-16, total volume of amla

collected was 16 metric ton followed by Bahada

(0.5 metric ton).this business is emerging in this

division and has a bright future ahead.Most of the primary collector in this division prefer to give

processed product i.e amla.

Target villages: The collection from all the targeted villages cannot happens due to reasons

like lack of awareness of collectors, involvement of targeted villages in some unscheduled

scheme from Govt. / Non- Govt. works in the village. Which distract people to involve in NTFP


point Cluster point

62%13%

25%

Quantity

primarycolllector

vill. SHG

Local trader

53 | P a g e

collection. Sometime reason may be like communication gap from the resource person in the

peak season of the NTFP product.

Product Knowledge: As most of primary collector and SHGs member are doing this business for last 2-3 year they have a very fair idea about the harvesting period, processing. As per the filed survey for 30 members which includes both individual & member of SHG. It is found in case of primary collectors 90% are aware of the harvesting procedure. At the SHG level similar stats were found. And at the Aggregating SHG also members of SHGs are well aware with the value addition activities.

Over all it is found that more people are preferring to give semi-processed or processed product. As it includes less value addition activity. Even though people are giving in these forms still at the aggregating point activities like sorting & grading are too done before final packing with the help of labor in case the volume is huge.

Financial Arrangements: The mode of payment & duration varies for each stakeholder in the value chain. It is highly recommended to the SHGs to give instant payments to the primary collectors. Most of the primary collector are getting instant payment.



Primary collector Hard cash Instant

SHG To Account of SHG 30





Cluster point from the Aggregating point. Transportation is a big issue in this division because the target village are far away from the aggregation point. So in this division transportation cost is a

major input cost. Due to this product mobility is also getting affected



the primary collector. n the second stage i.e. to move the product from SHG to Aggregating point basic mode of



54 | P a g e

Physical Infrastructure: This division facing the same problem like storage, drying yard etc.

Product mobility: product mobility is a big challenge in this division due to its geographical presence. Most of the target village are nearer to deep forest and far away from aggregation

point where road are unavailable. so product after processing has to come to a point where

transportation facility is there and from that point again it is going to aggregation point. As a

result there is more transportation cost involved and product mobility also becoming slow which

is affecting its quality.

CHAPTER 8

PRODUCT

Mainly there are seven medicinal NTFPs procured through this Dabur-Baitarani value chain. The harvesting period, processing method, potential areas are vary from product to product. So it is necessary to have complete idea about these medicinal product which are the focal point of this whole value chain. By knowing actual harvesting period and processing the efficiency of value chain can be enhanced. In some cases the local area knowledge is also greatly help in knowing the property of the product. So below there is a comprehensive idea about these seven medicinal NTFPs.

8.1 HARDA:

Botanical name: Terminalia chebula

Regional name: kraukanga

Part of the tree collected: Mature fruit

Harvesting period: November-mid-January

Harvesting Technique: collection from ground


• SHG

primary transport

ation

Aggregating point

Intermediate


Finaltransport

ation

55 | P a g e

Processing technique: within two days of collection it should be deseeded and the apocarps should kept separate. Then it should dry under sunlight for next 7-8 days .After complete drying it should properly kept in gunny bag with seal ensuring it is free from moisture

Weight loss after Processing: One can get maximum 600-700gm from one kg of raw Harida i.e. there is 40-50% weight loss

Locally used technique: interestingly we found in some area some people deseeding it by keeping it in vertical posture and punching from upper side. In some cases for easy deseeding some are keeping it in water for 8-9 hour by which it will break easily. But it is not sure whether this method affects its medicinal value or not?

Quality checking: For best quality it should be free of seed, crunchy sound should come during shaking, it should be free of foreign particle and should be not affected by fungus.

8.2. BAHADA

Botanical name: Terminallia bellerica

Regional name: Lasakanga, kenupadasu, tandatana

Part of the tree collected: Fruit

Harvesting period: November-February

Harvesting Technique: collection from ground

Processing technique: within two days of collection it should be deseeded and the apocarps should kept separate. Then it should dry under sunlight for next 8-9 days. After complete drying it should properly kept in gunny bag with seal ensuring it is free from moisture

Weight loss after Processing: One can get maximum 600-700gm from one kg of raw Bahada i.e. there is 40-50% weight loss

Locally used technique: interestingly we found in some area some people deseeding it by keeping it in vertical posture and punching from upper side. In some cases for easy deseeding some are keeping it in water for 8-9 hour by which it will break easily. But it is not sure whether this method affects its medicinal value or not?

Quality checking: For best quality it should be free of seed, crunchy sound should come during shaking, it should be free of foreign particle and should be not affected by fungus.

8.3 AMLA

Botanical name: Emblica officinalis

Local name: jurakanga , jhuria

Part of the tree collected: Fruit

Harvesting period: November-January

Harvesting Technique: Plucking slowly from branches ensuring there should no breakage of branch. One can use plucking stick

Processing technique: it should kept on steam ensuring there is no direct contact with boiled water. one can use a big pot in which water vapors will touch to a cloth kept above pot and above that Amla can cooked. After steaming the seed should separate from fruit and deseeded fruit should kept under sunlight for drying for next 10-12 days. Then it should packed in gunny bag with proper stitching.

56 | P a g e

Weight loss after Processing: There is almost 80% weight loss after complete drying I.e. one can get maximum 200 gm of dry Amla from 1 kg raw Amla

Quality checking: It should be cooked only on steam, it should completely devoid of foreign particles and salt. It should not be affected by fungus

8.4 SATAVARI

Botanical name: Asparagus racemosus

Local name: Isworjata, sib-jata, penansapari

Part of the tree collected: Root stuck/thin root

Harvesting period: December-February (it may vary place to place depending upon moisture content)

Harvesting Technique: As it is a underground product, one can get it by digging soil and uplifting total bush, by leaving 2-3 roots for further germination rest of the root can brought for processing. Processing technique: it should washed properly in water and then the upper thin skin should remove. Pilling should done immediately after collection make sure the internal thread should remain unaffected during pilling. Then it should cut into pieces (3-4 cm each) and should kept under sunlight for 6-8 days

Weight loss after Processing: one can get maximum 200 gm of processed satavari from one kg raw Satavari

Locally used technique: As pilling takes a lot of time in some places people used to keep raw Satavari in water for 1 & half days by which pilling become easier.

Quality checking: The size should be of 4-5 cm, upper thin skin should be removed properly before drying .Tt should not be affected by fungus

8.5. VIDARIKAND (BHUINKAKHARU)

Botanical name: Puria tuberosa

Local name: patalkahanra,paldakana

Part of the tree collected: Root stuck (pumpkin)

Harvesting period: November-February (Depending upon the moisture content of soil)

Harvesting Technique: it is mainly present as underground product. After harvesting it should be washed properly in water.

Processing technique: After collection it should cut into pieces (palm size pieces) and then it should kept under water for next 7-8 days

Weight loss after Processing: one can get maximum 100-200 gm of processed product from 1kg of raw product

Quality checking: size should be of palm size, it should be devoid of any foreign particle and soil particle.

8.6. TALMULI

Botanical name: Curculigo orchioides

Local name: Kalimusili,kaukanda,jindakhajur

Part of the tree collected: Root stuck

57 | P a g e

Harvesting period:December-February

Harvesting Technique: only upper shoot like portion should collected living tip of the root

Processing technique: After collection it should be washed properly in water, then it should cut into pieces of 1-2 cm and then it should kept under sunlight for 8-10 days for complete drying

Weight loss after Processing: one can get maximum 250gm from one kg raw product

Quality checking: size should be of 1-2 cm, it should devoid of foreign particle and should not be affected by fungus

8.7. DHATKI FLOWER

Botanical name: Woodfordia fruticosa

Local name: Dhaturi fula , Rakshi Fula

Part of the tree collected: Flower

Harvesting period: FEB- mid MARCH

Harvesting Technique: plucking flower with leaves and then the leaves are separated.

Processing technique: Removal of foreign particles like leaves and small broken branches. Then the flowers are exposed to mild sunlight for 2- 4 days.

Weight loss after Processing: 300 gms.

Locally used technique:

Quality checking: The best quality Dhatki is having Reddish color after drying and secondly there should be minimum moisture so as if should not form bundle when tightly bounded in hand.

8.8 VARIETY OF PRODUCTS:

Table1: Different Amla variety found during study.

Skin Seed size Colour Size Wt. after processing 1kg

Quality

Thick Small Green Big 400 gms Best

Less thick Medium Green Medium 350 gms Better

Thin Big Green Small 300 gms bad

Table2: Different Harida variety found during study.

Skin Seed size Colour Size Wt. after processing

1kg

Quality

Thick Small yellowish Big 600 gms Best

Less thick Medium Green+black Medium 500 gms Better

Thin Big Green+black Small 450 gms bad

58 | P a g e

Table3: Different Bahada variety found during study.

Skin Seed size Colour Size Wt. after processing 1kg

Quality

Thick Small Brownish green Big 650 gms Best

Less thick Medium Brownish green +

black

Medium 600 gms Better

Thin Big Brownish green +

black

Small 550 gms bad

Table 4: max. Collection per day raw.

Name of the

product

Dhatki Satava

ri

Talamuli Amla Harida Bahada Bhuikakharu

Max.collection

per day in kg

5 6 4 15 6 6 8

59 | P a g e


CHAPTER 9

Discussion and Recommendations:

Based on the finding from the existing value chain from institutional arrangement and cost and other

opportunity cost. Some of the key recommendation to enhance the efficiency in the value chain are

as follows:

1. Potential Target Village selection for procurement: proper identification and

selection of potential villages are very critical aspect. It directly creates impact on the

quantity and collection of products. If the selection is not done properly it will affect the volume. So during the selection of villages certain things should be kept in mind. Like :

The village should be near to the forest and should have adequate product potential.

The village should not be more than 10 km from the Aggregating point. More the

distance more will be the internal transportation cost which will shrinkage the margin

for both primary collector & respective collection/Aggregating point.

The village should have proper transportation & road linkage.

60 | P a g e

The village should have pro-active SHG and or individual primary collectors.

Availability of fund with the SHG during NTFP season.

The people of that village should have keen interest & willingness in doing this

medicinal ntfp activity. I.e. people should also take this activity as an additional

source of income. The village should have comparatively less other opportunity during the medicinal

NTFP season.

Some other key activities:

Activity like FGD with the villagers, SHGs and local traders should be conducted by

the CRP and DRP before the NTFP harvesting season so that proper information

regarding product harvesting, season and processing procedure can be passed to the

collectors.

Declaration of MSP well ahead of harvesting period. Resource mapping exercise should be done with the community who frequently visit

to forest for NTFP collection which includes potential collectors.

Record maintenance which includes identification of potential collectors and SHGs.

Linear model: According to this model the procurement villages should be in a linear

so that the procurement and mobility of product will be fast and in-time.

61 | P a g e

2. Characteristics of Ideal Stakeholders: For the smooth functioning of the value chain

all the actors involved like primary collectors, SHGs, CRP, DRP should have the basic

criteria. Ensuring these will enhance the existing value chain.

62 | P a g e

63 | P a g e

64 | P a g e

3. MSP according to Quality: For the medicinal NTFPs the minimum support price (MSP)

has been declared by Dabur. But as there is a lot of difference in terms of quality in the

product as well as processed product the

MSP doesn’t justify. For e.g. In case of

Dhatki flower the MSP greatly vary from Rs. 10 -17 per kg. This huge price range

creates a problem as there is further loss

of weight. So a standard price format

should be made to decrease the price

gap. This transparency in price will

encourage the primary collectors to give more of good quality & processed product. And

it will help in trust building and bond. Similarly in case of other products like Bahada,

Harida and Amla the quality greatly vary in context to area. As discussed earlies in the product chapter. So deciding the MSP according to quality will ensure high quality

processed product from the primary collector.

4. Proper and Equal division of Labor at Each level : As there is lack of processing

tool for the products so if the products are not processed at primary level then all the

burden passes to the SHG and also to

the Aggregating point which creates

problem for processing as the quality

becomes huge in this stage. By passing

the processing will not only creates

processing difficluty but also it hampers on the quality and decline in medicinal

value of the product. Also if processing is

not done in proper time then the amount

of loss during processing also increases.

So to avoid this it should be ensured that a minimum of half the total quantity should be

given by the primary collector in the processed form and rest can be raw or semi-

processed. This will decrease the burden for the next level in the value chain. Similarly

besides equal participation from the members of SHG it also should be ensured that out of total collected stock atleast 70% of products should be given in the processed form to

the next level i.e. to the Aggregation point. Following this trend will help in proper timely

movement of products in the chain.

65 | P a g e

5. Proper monitoring schedule: Proper monitoring is a vital event in the whole chain for

maximum volume of product collection as well as for maintaining of good quality of the

Product. It is found during

the study that there is a

lack of timely monitoring at CRP and DRP level at

some areas which creates

a situation of product

leakage. To check these

issues proper co-

ordination between three

major stakeholders i.e.

Primary collector, CRP and DRP is must. Some

activities which must be kept in mind are:

Interaction with the primary collectors and SHGs before one month of fruiting.

Declaration of MSP before harvesting period.

Skill training programme before just starting of fruiting season. It includes live processing

demonstration or transfer of skill from other trained members and potential collectors.

Interactive programme should be conducted specially for processing because processing is a

challenge if not done as per instruction which can leads to loose of interest of NTFP collectors. During the programme activities and competition like who can break or process a

certain amount of product in lesser time. Which will create an interest among the NTFP

collectors to involve in medicinal NTFP activity. Lesson and tricks can be learnt from the

winner.

Distribution of leaflet regarding product information especially harvesting period as during

study it is found that many collectors are unable to collect because of lack of fruiting and

harvesting period information and MSP should be done during training programme.

Books regarding product knowledge has been

Printed in odia language

which needs to be

distributed during training

programmes.

DRP

CRP

PC

66 | P a g e

6. Accessibility other than availability: As it is difficult to make product assessment of

forest produce due to geographical barriers. We need to do the estimation of product

spectrum. It can be done on the basis of stock assessment from last couple of years.

The product assessment will help to arrange funds accordingly way ahead of the NTFP

seasons. 7. Transfer of skills & processing knowledge: The major issues with the medicinal

NTFPs is the processing which is found to be very challenging for the collectors as a

result they prefer to give the product without doing any value addition i.e. in the raw

form. It not only loss for the primary collectors but also it creates difficulty in the further

value chain. The lack of in-time processing also hampers the product in terms of

medicinal values and weight loss and

sometimes the products becomes

unable to process. So overcome this issue to some

extends we can arrange workshops and

the processing demonstration may be

given by those individuals who have

good processing knowledge and those

who are giving the product regularly in the processed form. This will encourage to the

collectors to give more of product in the processed form.

67 | P a g e

8. Identification of locally used tools and techniques: As there is no processing tools

& machinery are available till now so it is a very difficult to process the products. People

are willing to give in the raw form but not in the finished form. But in some areas it is

found that they are using local knowledge to process the product and they are finding it

somewhat easier. E.g. in the case of

Harida generally people break it by

using stone pieces and hitting it

flat. As a result there is a loss as some parts become powder. But if

harida is hitted keeping it vertically

so there will be no such loss and

also it will break easily. This

technique is being done by people

of Jamadhara in Bonai division

from last few years and Similarly

for Satavari which is the most difficult to process and mainly the

issue is it has to process within two

days otherwise it will be impossible

to peel out the skin of Satavari.

Without peeling off the skin it has

no use it means complete wastage

of the product. Also it will affect the interest of the collectors. Some of the best practices

are seen in the nearby villages of Sulumaha Aggregation point.

68 | P a g e

9. Proposed model : The VLLC (Village Level Leading Collector)model

VLLC: Village Level Leading Collector is the one who is having good processing skills, product

knowledge, knowledge about seasonality of medicinal NTFPs, regularly giving maximum processed

product during every season. This model is feasible in case where the SHGs are not very much functional

and pro-active. It is found during the study that there is a lack of equal participation from the SHG

members which affects the product mobility in the value chain.

This model will be very much useful in these conditions. The role of the VLLC would be to guide the

collectors during the harvesting and specially during the processing which is a vital phase. As the VLLC

are good at processing so they will encourage the primary collectors to process the product and give

over to Aggregating point. Which will increase the efficiency of the value chain.

• Proposed Resource mapping model:

PC VLLC CRP Agg. point

69 | P a g e

• Innovative marketing strategy:

1. Product display at local haat: It is a cheap and effective way to promote product and

making people aware of the medicinal products. During field study we came across this

method being used in Jamadhara Aggregation point in Bonai division. As a result of it they

are able to pool more products irrespective of the target ten villages.

2. Incentive to collectors: Incentive to the primary collectors or SHG can be given to those

who gives certain quantity of product. E.g. for primary collector who will give 25 – 30 kg processed product will be given 50 paise more per kg. And those who will give 50 kg or

above processed product will be awarded with Rs.1 per kg.

Similarly incentive brackets can be made for SHGs also.

3. Identity Card to primary collectors: A card can be given to NTFP collectors who are engaged

in this activity specially those who collect medicinal NTFPs. This will help in tracking

resource and primary collector.

Table: A general format that can be used in the card

Name of PC

Name of

Divisio

n

Name of

village

Sl. No in

village

Sl. No in

Divisio

n

Name & No. of

product

given

Quantity in Kg-

Processe

d _ &

Raw _

Last year

quanti

ty

contri

bution

This year contribution

70 | P a g e

CHAPTER 10

Case study on successful SHG

Jay Hanuman SHG

ESTD-2006

Total member-14

Village-Talachampi

Division-Koraput

This is something really inspiring what one can say a best example of unity and women empowerment. In a tribal dominated district like Koraput , a village called Talachampi.14 tribal women of the village started there SHGs a long back in 2006.The objective was that to save some money in the group fund which will be useful in future need. Doing business or something else was not at all in the focus. This scenario continued for next 2-3 year like they used to save money in the bank account and used it for their own purpose. After some time they realized to do some business and there the seed of success was showed. In the year 2009 they started doing rice business on their own money and gained some profit of 15000 and continued to do the business for next 2 year. But after 2 year the business stopped due to some reason and they started a new business of poultry by taking loan of 40000 from bank. But unfortunately business went on loss and as they failed to give bank due Loan linkage was closed and bank account was ceased. Then like a ray of hope Baitarani- Dabur project came to them with a proposal of doing business of Dhataki flower as this area is a potential area for Dhatki flower. After so much hesitation they started collecting dhataki flower by their own from nearest forest and gave to dabur by doing some processing. As there is no input cost involved in this business they gained some profit though it was much less.it was in the year 2013.Again in 2014 volume of dhataki collection increased and already they have some idea about this business as a result profit increased. In the year 2015 they started collecting raw product from nearest village under the existing value chain and volue collected was increased dramatically .in that year trhey made a profit of 20000 and more interestingly there knowledge was increased regarding the business.in this year they have their own shop in which they are giving day to day product like soap,oi;,salt to primary collector and taking raw flower from them.Now they are maintaining their own record regarding business, now they are very much self-sufficient to do this business without any ones supervision like DRP or CRP which is really a inspiring story. They are making a good profit from this business at the same time they are empowering

themselves setting examples for other SHG women to do this business

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Case study on Leadership

Aggregation point-Sitapadi

Name-Bishnu majhi

Division-Baliguda

Age-23

This is about a young leader called Bishnu majhi of Baliguda division.He has set a good example of

Leadership by which one can say that in any adverse situation one can succeed if he will accept that

challenge. Before 2 year sitapadi was just like another aggregation point at which processing of these

Medicinal NTFPs are done. Before 2 year it was facing common problems like lack of physical

infrastructure, Lack of sufficient fund, Lack of equal participation from SHG member by which it was a

forceful business for the sitapadi SHG member. After the implementation of CRP model by This Dabur-

Baitarani enterprise to monitor all the activities at aggregation point and also at SHG point Bishnu

Majhi took the CRP charge for this sitapadi aggregation point. At first he faced some common problem

like convincing the primary collector and SHG member to do this business as most of them was not

taking it as a serious source of income. He started community mobilization at different villages of

potential areas under him and circulated message regarding this business and also gave training

regarding processing .As he belong to same sitapadi village he was able to convince the SHG member

of that business for doing this business. At the starting of season he conducted maximum meeting which

paid off and product was collected from targeted village but there was a challenge again as most of

the product procured are were in raw form. Somehow he was able to convince his village women to

processed and finally all product was processed.it was in last year.in this year again it was a great

success as sitapadi became the number one aggregation point in terms of volume collected.

Surprisingly 10 ton raw product has been processed by this village SHGs without any processing tools.

So Bishnu has a great influence in this success as he was able to convince these women in believing in

this business and by proper monitoring. He has set a good example if leadership quality which may be

inspiring for other CRP to become successful.

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ANNEXURE 1: QUESTIONNAIRE FOR PRIMARY COLLECTORS AND SHG

Date of survey:

1. Name of the Division:

2. Name of the Aggregation Point:

3. Name of the village:

4. Name of the SHG:

5. Name of the Respondent:

6. Gender: 1. Male 2. Female

7. Age (in Years): 18 - 35

36- 52

53 - 69

70 Above

8. Nature of Collector: 1. Primary Collector 2. Member of SHG

9. Number of members of SHG involved in NTFPs Activity:

10. Cultivable Land (In Acres): Landless

0.5 - 2

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2 - 3.5

3.5 - 5

5 Above

11. Method of Harvesting: 1. Collection from ground

2. Plucking

3. Both (1& 2)

4. Uprooting completely: yes No

5. Branch cutting yes No

6. Setting fire on the ground: yes No

12. Harvesting Procedure: 1. Self

2. Labour *labour Charge w.r.t Govt. Norms

3. Collective *collective for SHG

13. Number of Product: 1. Amla 2. Baheda 3. Harridan 4. Dhatki

5. Bidarikanda 6. Satabari 7. Talamuli

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14. Collection (In kgs/hour) for : 1. Amla 2. Baheda 3. Harida

4. Dhatki 5. Bidarikanda 6. Satabari 7. Talamuli

15. Number of Hour involved in collection per day :

* w.r.t ntfp activity clock

16. Number of Activities Involved : 1. Raw Collection 2. Drying

3. De-seeding 4. Rough packing 5. Transportation

6. Final Drying 7. Sorting, Grading & Re-packing

Product : HARIDA

A. No. Of days involved :

B. Season (month) of harvesting to final product :

A. Product given to whom : SHG Aggregation point Cluster pt.

B. Product given in which form : Raw Semi-finished finished

C. Raw product collected in kgs. Processed/Raw product in kgs

D . Collection (In kgs/hour) for : Harida

E. Collected at what price & traded at what price : _____________ ___________

Weight Loss :

1. Wgt. Loss in gms. During conversion of product from raw to Dry stage :

2. Wgt. Loss in gms after de-seeding :

3. Wgt. Loss in gms after drying :

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4. Wgt. Loss in grams after removal of foreign particles :

5. Wgt. Loss in gms due to low quality/moisture :

*wgt. Loss for individual products.

Process followed :

Number of Activities Involved : 1. Raw Collection 2. Drying

3. De-seeding 4. Rough packing 5. Primary Transportation

6. Final transportation : Yes No

7 . Final Drying 8. Sorting, Grading & Re-packing

Input Cost :

1. Labour charge in Raw collection(in Rs.)

2. Time taken(in hours) to de-seed of 1 kgs of Harida

3. Cost of Gunny bag Standard Volume/bag (in Kgs)

4. Cost of Stitching thread * e.g- how many bags can be stitched in one bundle.

5. Method of transportation : Headload Cycle two-wheeler

3-wheeler 4-wheeler

6. Distance from dispatch point : SHG_______ Agg.point________ Cluster________

Product : BAHADA


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Product given to whom : SHG Aggregation point Cluster pt.

D . Collection (In kgs/hour) for : Bahada


Process followed :


3. De-seeding 4. Rough packing 5. Primary Transportation



Input Cost :


2. Time taken(in hours) to de-seed of 1 kgs of Bahada


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3-wheeler 4-wheeler

6. Distance from dispatch point : SHG Agg.point Cluster

Weight Loss :





5. Wgt. Loss in gms due to low quality :


Product : AMLA






D . Collection (In kgs/hour) for : Amla

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Process followed :

A. Steaming & de-seeding : yes No

B. Boiling & de-seeding : yes No

C. Drying : yes No

D. Internal transportation : Yes No

E. Final transportation : Yes No

Input Cost :


2. Firewood required for boiling 1kg Amla kg.

2. Time taken(in hours) to steam/boil &de-seed of 1 kgs of Amla




3-wheeler 4-wheeler

Distance from dispatch point : SHG Agg.point Cluster

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Weight Loss :


2. Wgt. Loss in gms after steaming & de-seeding :





Weight Loss :

Product : HARIDA








Product : DHATAKI



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D . Collection (In kgs/hour) for : Dhataki


Weight Loss :


2. Wgt. Loss in gms after final drying : * to be asked at Agg. point



Process followed :


3. Rough packing 4. Primary Transportation



Input Cost :


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2. Time taken for sorting, grading & packaging(in hr/kg) :




3-wheeler 4-wheeler


Product : BIDHARIKAND






D . Collection (In kgs/hour) for Bidarikand :


Weight Loss :


2. Wgt. Loss in gms after final drying &quality checking : * to be asked at Agg. point

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Process followed :





8. Cleaning with water 9. Chopping

10. What is the approximate size to be cut into ?

Input Cost :


2. Time taken(in hr) for chopping 1kg of dhataki





3-wheeler 4-wheeler

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Product : TALAMULI






D . Collection (In kgs/hour) for Talamuli :


Weight Loss :




Process followed :

Number of Activities Involved : 1. Uprooting

2. Cleaning 3. Chopping



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9. What is the approximate size to be cut into ?

Input Cost :


2. Time taken(in hr) for chopping 1kg of dhataki





3-wheeler 4-wheeler


Product : SATABARI





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D . Collection (In kgs/hour) for Satabari :


Weight Loss :




Process followed :

Number of Activities Involved : 1. Uprooting

2. Cleaning 3. peeling 4. Chopping




9. What is the time between uprooting & peeling ?

10. Do you take out the thread from satabari ? Yes No

Input Cost :


3. Time taken(in hr) for peeling 1kg of Satabari

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3-wheeler 4-wheeler


17.Problem faced during procesing Raw to finished product & Any Recommendations : ____________________________________________________________________

Calculation of competing Incomes :

Type of Activities *Season/duration No. Of days invovled

Remarks/ cost

1. MGNREGS

2. Agri.Labour

3. Migrant Labour

4. Non-Agri

5. Agriculture

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6. **Other activity of SHGs

* season should match with ntfp harvesting period.

* *to be asked to SHG only.

ANNEXURE 2: QUESTIONNAIRE FOR AGGREGATING POINT SHGs

Name of division :

Name of Agg./vill :

No. Of products : _______ _________ ____________ _______________

Product collected from: 1. Primary collector 2. SHG

3. Local Trader (Name)

1. Final value addition : Yes No

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2. Both Collection & value addition : Yes No

3. Number of Activities Involved : 1. Raw Collection 2. Drying

3. De-seeding 4. Rough packing 5. Transportation to Cluster

6. Final Drying 7. Sorting, Grading & Re-packing

4. Distance from Cluster(in kms) : _____

5. Method of transportation :

3-wheeler 4-wheeler

6. Input cost :

Time taken for processing(in kg/hr) :

Time taken for sorting, grading & packaging(in hr/kg) :

Cost of Gunny bag Standard Volume/bag (in Kgs)

Cost of Stitching thread * e.g- how many bags can be stitched in one bundle.

7. Wgt. Loss in gms due to low quality/moisture :


- Wgt. Loss in grams after removal of foreign particles :

8. Challenges & Recommendations :

A. Timely dispatch of product : yes No

* If No give reasons : ________ _______ _______

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B. Lack of tools & Infrastructure affecting processing : Yes No

C. Timely Payment : Yes No

ANNEXURE 3 : QUESTIONNAIRE FOR LOCAL TRADERS DATE :

Name of Div/village: _________ ___________

1. Name Of product : _________ _________ ___________ __________ ____________

2. Whether a memeber of SHG: Yes No

3. Source of Collection : Primary collector : ________________________________

SHG : __________________________________________

4. Product collected in which form & what price: ______________ ____________

5. Product traded with whom: 1. SHG ____________ 2. Agg. Point ______________

6. Product traded in which form & at what price: _____________ _____________

7. Recommendations & suggestions :

___________________________________________________________________

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REFERENCE:

Report of the Committee on Minor Forest Produce Report of the sub‐group‐II On NTFP and their Sustainable management Enhancing Livelihoods through Minor Forest Products by N C Saxena

CSS-REPORT

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