Marketing of Non- timber Forest Products in India: Opportunities and Challenges Dr. Parag DUBEY Faculty of Marketing Indian Institute of Forest Management (IIFM) PO Box 357, Nehru Nagar Bhopal (MP), INDIA -

NTFPs- Current Scenario About 100 million people in India live in and around forests to get a part of their livelihood from NTFPs About 70 million are tribals - mostly forest dwellers Women are the main gatherers & earners from NTFPs Family is the basic unit around which the social organization of the tribal society takes its form

NTFPs Classification in India Shiva and Mathur, 1996 GROUP-I NTFPs of Plant Origin - Edible Plant Products - Spices and Condiments - Medicinal Plants-Aromatic Plants - Fatty Oil Yield Plants - Gum & Resin Exuding Plants - Tan Yield Plants - Dye & Colour Yield Plants - Fibre & Floss Yield Plants - Bamboo-Canes - Fodder&Forage - Fuelwood, Charcoal Making - Bidi Wrapper Leaves - Other Leaves for Plates - Beads for Ornaments - Saponin & Marking Nut Plant-Others

NTFPs Classification in India Shiva and Mathur, 1996 GROUP-I NTFPs of Animal Origin - Honey & Bees Wax - Lac & Shellac - Tussar and Other Silk - Insects and Animal-Hides, Skins and Feathers - Horns, Bones and Shellac-Ivory and Musk NTFPs of Mineral Origin -Mica, Sand, Gravel -Other Minerals GROUP-II Services-Tourism, Recreation, Wildlife

National Forest Policy, 1988 & NTFPs Minor forest produce provides sustenance to tribal population and to other communities residing in and around the forests. Such produce should be protected, improved and their production enhanced with due regard to generation of employment and income. The rights and concessions from forests should primarily be for the bonafide use of the communities living within an around forest areas, specially the tribals.

National Forest Policy, 1988 Their domestic requirements of fuelwood, fodder, minor forest produce and construction timber should be the first charge on forest produce. Protection, regeneration and optimum collection of minor forest produce along with institutional arrangements for the marketing of such produce.

TRIFEDNationalNAFED TDC/FDC StateACMF L AMPSPACSPrimaryACSGCCPMSFSS NTFPs Collectors/Tribe Institutional Setup for NTFPs Marketing in India

Issues in NTFPs Management 3000 plants species which yield NTFPs (CSIR, 1985) 150 excluding medicinal plants, are commercially exploited Little is known of the actual production, use, and the way of marketing The state forest department is responsible for NTFPs development process, from inventory to product marketing Absence of a definite action plan at state and national level for extraction and marketing Collection, processing, and marketing continue to operate in a traditional way in most parts of the country. Non-sustainable harvesting Lacking of Value-added NTFPs

Constraints to NTFPs Sector Local markets are thin, a small change in supply has large effect on the market High transportation cost in moving NTFPs from rural to urban centers Ineffective policies and legislations Production and processing methods are rudimentary

Marketing of NTFPs Mostly Gathered from Forest Production Often Seasonal Producers Frequently Poor/Landless Quantity is Small at HHs Level % of Sale Price Received Extremely Small Information on Exploitation lacking Weak links to official Marketing System Limited Marketing Practices Non Existence of Marketing information Lack of Marketing Capabilities Poor Institutional and Infrastructure Support

Common NTFPs Market Channels

The Exploitative Nature of NTFPs Market Bigger Trader/Manufacture NTFP Consumer Collector Local Trader/Agent Export Processing [Curved Arrows depict the financial flow] NTFP [Size of circle depicts the value of NTFPs ]

A Tribal Family Income Forest (50%) Agriculture (18%) Cattle(14 %) Other Employment (18%)

Time Utilisation by Male & Female adults in a Tribal Family Agriculture (18%) Cattle(14%) Other Labour Agriculture LEISURE NTFP Collection Other Labour Household NTFP Collection Agriculture

NTFPs & RURAL LIVELIHOOD Safety nets for rural households income in lean agriculture season or when crop failure Gathering and marketing at the local level are mostly done by women and children Empowering women and increase their contribution to household incomes

Marketing of NTFPs in M.P. State Controlled NTFPs Leased NTFPs NTFPs under free trade

Important NTFPs Markets in MP & India

State Management of NTFPs State Forest Department had nominal control on the trade of any NTFPs Nationalisation of tendu leaves in 1964 Contracts for collection of tendu leaves from government lands were awarded to private parties The petty traders purchase leaves grown on agriculture lands The revenue received by the government was very low, compared to the profit earned by the contractors

Objectives of Nationalization To control the theft of tendu leaves from the forest and other government lands; To enhance the state revenue To ensure payment of proper wages to the tendu leaf pluckers and To free the downtrodden from the clutches of the middlemen and traders

Co-operative Management of NTFPs In 1988, the State government of MP took a decision to co-operatize the management of –Diospyros melonoxylon (Tendu) leaves –Terminalia chebula (Harra) fruit –Shorea robusta (Sal) seeds –Sterculia urens (Kullu) Boswellia serrata (Salai) Gums Totally remove the middlemen involved in collection, storing, processing, grading and marketing of nationalised NTFPs, Three-tier organization was formed for effective implementation of co-operative management

NTFPs Contribution to Total Export Economic Significance of NTFPs

NTFPs Production & Employment Potential Economic Significance of NTFPs

Price Spread in Phyllanthus emblica

Empowerment for Poverty Eradication To raise NTFPs Collector's incomes and improve quality of life Organize Rural Women’s Groups & their Federations Knowledge & Awareness Investment Support Government Departments Financial Institutions Panchayati Raj Institutions Markets & other Institutions

Self Help Groups (SHGs) Networks of the Poor SHGs Village Organization Block Committee Group level NTFPs Collection Thrift and credit activities Monitoring Executive Committee from SHGs Strengthening for Marketing NTFPs Arrange line of credit to the SHGs Social action & Support activities Village development Executive Committee from Village Organization Support to Village Organizations for Marketing Secure linkage with Govt. Departments, Financial Institutions & Markets Monitoring of the Groups Micro Finance Functions SHGs

The Strategic Interventions Required NoEssentials of NTFP Marketing Intervention 1Non-destructive harvesting of NTFPs  A record of NTFPs collection at Gram Sabha level  A procedure to ensure non- destructive harvesting 2Tackling the exploitative nature of the NTFPs market  The Pharmaceutical /NTFPs Companies to procure raw material from Gram Sabha (or SGHs of gram sabha) or from known dealers who in turn have procured from gram sabha

NoEssentials of NTFPs Marketing Intervention 3Ensuring greater financial return & employment generation to the local people  Local processing of NTFPs  Micro–finance (revolving funds)  Optimum utilization of both male and female capabilities 4Improving the well- being of the tribal woman  Improving the health of the forest &promoting NTFPs regeneration  Greater financial return to women with focus on the needs of the family  Male members to be involved to reduce resource wastage & to utilize their capacity to the optimum

Strategic Intervention to Ensure Better Return to the Primary Collector Export Local Trader/ Manufacture [Curved Arrows depict the financial flow] NTFP Consumer Local Processing A Bargained transaction Collector Big Trader/ Manufacture NTFP [Size of circle depicts the value of NTFP]

Improve Regulations & Policies Affecting the Development of NTFPs Rules governing production and trade of NTFPs should be transparent Need to allow rural communities to get more involved in value addition & trade of NTFPs Remove high barriers to entry for rural communities to engage in large-scale trade and exports Need to eliminate blocks which increase transaction costs Need to harmonize NTFPs policies to promote integration of regional markets

Commercialization of NTFPs Big traders & manufacturers to depend on micro-enterprises for supply of semi-processed NTFPs Big traders can invest on skill enhancement for micro-entrepreneur and adopt a transparent system of procurement The Gram Sabha should have a record of all NTFPs collected quantities to ensure non- destructive harvesting

Women entrepreneurs to be encouraged to take up local processing and to adopt local use Developing marketing information system No resource wastage

Thank You.