Study on Mahua Sub Sector - Cgsird.gov.in

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Executive Summary Seventy five per cent of the tribal households in our country are engaged in Mahua flower collection meaning a population of around 7.5 million is into this livelihood activity. Various studies indicate that a household gets between Rs 2500-5000 in a normal Mahua year. An estimate says that 28600 person years of employment are generated in mahua flower collection every year(FGLG India, 2008). But the income for the primary collectors/processors in this transaction is very low. This is often attributed to an unorganized market and little access of the primary collectors to the market. The major issues in Mahua flower sub sector are • Distress selling and low price realization at the producer end • Unsustainable harvesting and often environmentally damaging practices in collection • Depletion of the resource base and its concentration in the hands of large farmers • Non availability of credit for producers • Absence of quality standards and non adherence to quality parameters • Failed initiatives leading to a hands off approach by state agencies • No major commercial breakthroughs in alternative products development The study find three major leverage points namely credit, storage and knowledge. The recommendations along with their financial implications are given below. Recommendations: Credit • A micro credit fund should be created for meeting the cash needs of Mahua collectors and Mahua procurement is assisted through this fund. The fund may be placed in the hands of producer organizations. • Appropriate credit cum insurance product may be designed to meet the specific requirements keeping the Mahua trade cycle in mind. • At the apex level, the fund should be managed by a special purpose vehicle for at least three to five years. The experiences gained in the process may be incorporated in future design. • A decentralized procurement mechanism should be created so that primary collectors get better price of their produce. This mechanism should be managed at the cluster level by an organization of primary collectors. Van Dhan Samitis and Mahua Banks are initiatives that need to be considered while designing such a mechanism. Existing MFP cooperatives may be encouraged to take up collection of Mahua flower. CGMFP federation had already issued circulars in this respect. Recommendations: Storage A decentralized storage infrastructure with large number of mini godowns at vantage places should be created in public private partnership mode. This infrastructure should be placed in the hands of the panchayats who would charge a fee and manage the godowns. The following two models can be considered. • Panchayats construct and manage, charge a storage fee • Panchayats construct, producers manage and pay a rent
Recommendations: Knowledge A combination of local wisdom and modern practices would reduce spoilage, improve quality and fetch better prices. • Knowledge and practices relating to harvesting and post harvesting treatments need to be codified. Protocols developed and suggested by Ministry of Environment and Forests should be popularized through training and campaign programmes. • Orientation of the primary producers and traders on grading and marking of Mahua as prescribed in Mahua Flower Grading and Marking Rules, 2008 should undertaken on a regular basis. Other significant recommendations • Plantation of Mahua trees needs to be encouraged given the level of depletion of resources. Plantation programmes by state forest department and various other agencies should have a component for Mahua plantation. NREGA can be harnessed for the purpose of both plantations on individual lands and common lands. A variant of Tree patta model can be worked out for poorer families having no or less land. • A National Transit Code may be formulated/facilitated for inter state movement of Mahua as Mahua is both exported and imported by Chhattisgarh in substantial quantities. This would cut down on transaction costs. • As trade through mandi has come down drastically, mandi tax may be imposed only on the produce traded through mandi. • An inter state consultation forum on excise regulations relating to Mahua flower may be evolved so that the effects of sudden changes are minimized. Financial implications of recommendations The micro credit fund should start with an initial corpus of Rs200 million targeting financing 10-20 per cent of annual trade in Mahua flower in terms of value. The storage infrastructure would cost around Rs400million for 1000 mini godowns. Knowledge related interventions others would cost around Rs100 million. The total cost of the intervention comes to Rs700 million which is expected to benefit at least 20 per cent of state population or four million people. PRIs are expected to play a critical role in the whole process. The model suggested has a better poverty outcome than the poverty alleviation programs being implemented at a lesser cost. 1. Background
Page 1: Report of the Study</strong
Page 5 and 6: Characteristics Madhuca longifolia
Page 7 and 8: 1.2 State Context The state of Chha
Page 9 and 10: 2.4 Major tools used The tools used
Page 11 and 12: 2.6 Limitations The study is limite
Page 13 and 14: 3.1.2 The processing sub system Pro
Page 15 and 16: Mahua Sub-sector Map Market/ Stages
Page 17 and 18: 3.3 The Policy and Institutional Co
Page 19 and 20: • Retailers keep a margin of 8-10
Page 21 and 22: Van Dhan Samitis of Bastar Van Dhan
Page 23 and 24: Recommendations: Credit • A micro
Page 25 and 26: 4.5 Financial implications The micr
Page 27 and 28: Annexure 2 Literatures reviewed 1.
Page 29: Slide 3: Brew making in a tribal ho

Study on Mahua Sub Sector - Cgsird.gov.in

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