26-Nov-2021: 9 Van Dhan Vikas Kendra clusters have been made operational in Nagaland covering Zunheboto, Wokha, Tuensang, Phek and Mokokchung districts

Nagaland has emerged as another example of tribal entrepreneurship that has showcased to the entire country how cluster development and value addition can help members earn significantly higher income. These clusters are one of the many developed under Van Dhan Yojana(PMVDY) introduced by TRIFED, Ministry of Tribal Affairs, in association with State departments. The scheme aims at empowering tribals by providing them support in terms of financial capital, training, mentoring, etc. in order to expand their business and enhance earnings.

Nagaland Beekeeping and Honey Mission (NBHM), the nodal Agency for honey production in the State, has been the implementing agency for the said set of clusters. It has implemented the Van Dhan Yojana programme solely for beekeeping activity as the only MFP in the first phase, which was initially implemented with five Van Dhan Vikas Kendra Clusters in four districts. Since Honey production is a seasonal activity and during offseason or dearth period the Van Dhan SHG members remained idle. Therefore in order to operationalize the Van Dhan Vikas Kendra Cluster activity throughout the year the State Implementing agency (NBHM) envisaged to venture for other minor forest products such as Hill broom, oyster mushroom, ginger and nut gall.

The genesis of oyster mushroom cultivation begun with a trail on few selected SHGs during the pandemic which eventually prompted the State implementing agency to embark on a larger scale after witnessing the numerous production, scope for marketing opportunities and its consumption benefits for health aspects. VDVKCs are now engaged in the oyster mushroom cultivation on a larger scale, targeting approximate production of five (5) metric tonnes in raw in the coming months with two variety "pink and white”.

Through the efforts of TRIFED, the ‘Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and Development of Value Chain for MFP’ has impacted the tribal ecosystem in a major way. Procurement has gone up from Rs 30 crores to Rs 1843 crores using GoI and State Government Funds across the country. The Van Dhan tribal start-ups, a component of the same scheme, has emerged as a source of employment generation for tribal gatherers and forest dwellers and the home-bound tribal artisans.

For the state of Nagaland alone,  285 VDSHGs have been sanctioned subsumed into 19 VDVK Clusters out of which 9 VDVKCs (135 VDSHGs) have been made operational covering Zunheboto, Wokha, Tuensang, Phek and Mokokchung districts. The VDVKC is currently producing Wild honey, Amla, Nutgall, Zanthoxylum, Roselle, Ginger, Turmeric, Hill Broom, Oyster Mushroom through value addition of MFPs, which has benefitted the lives of almost 5700 members attached to it. Till date sales of 35.32 lakhs has been achieved by the VDVKCs helping in the economic upliftment as well as empowerment of tribal communities in Nagaland.

The Van Dhan tribal start-ups, a component of the same scheme, has emerged as a source of employment generation for tribal gatherers and forest dwellers and the home-bound tribal artisans. Sh. Narendra Modi Hon’ble Prime Minister inaugurated the first Van Dhan Kendra on 14th April 2018 at Bijapur, Chhattisgarh as value addition centre for tribal produce and in less than two years, 37,362 Van Dhan Self Help Groups (VDSHGs), subsumed into 2240 Van Dhan Vikas Kendra Clusters (VDVKCs) of 300 forest dwellers each, was sanctioned by TRIFED. Since the inception of the Van Dhan Yojana, TRIFED was tasked to establish 50,000 Van Dhan Self Help groups and after launching the program in mission mode this year, TRIFED achieved the milestone of sanctioning 50,000 VDSHGs on 15thOctober 2021, and now stands at the count of 52,976 VDSHGs which are subsumed into 3110 VDVK Clusters.

The scheme has already proved to be a beacon of change which has positively impacted the tribal ecosystem by being a source of employment generation for tribes and the beauty of the programme lies in the fact that it ensures that the proceeds from the sales of these value-added products goes to the tribals directly.

8-Mar-2021: 1770 Van Dhan Kendras sanctioned so far in 22 states and one Union Territory

A total of 1770 Van Dhan Vikas Kendras (VDVKs) have so far been sanctioned in 22 States & one Union Territory for promotion of tribal entrepreneurship and livelihood generations wherein a total of about 5.27 Lakhs beneficiaries have been associated. This includes 5 VDVKs sanctioned for Uttar Pradesh State as per details below:

It is envisaged to scale up implementation of the program in 26 States and 308 Districts including 39 aspirational districts where significant forest dwelling tribal population and rich source of Minor Forest Produces. Further it is envisaged to explore opportunities to forge convergence with other central line Ministries to boost the initiative.

25-Jun-2018: Government proposes to set up 3000 Van Dhan Kendras involving 30,000 SHGs across the country

The Government proposes to set up 3000 Van Dhan Kendras involving 30,000 SHGs across the country under the Van Dhan Scheme of the Ministry of Tribal Affairs. In a new game changing initiative, the Prime Minister launched the Van Dhan Scheme of Ministry of Tribal Affairs and TRIFED on 14th April, 2018 during the celebrations of Ambedkar Jayanti at Bijapur, Chhattisgarh.  Emphasizing the important role of value addition in increasing tribal incomes, the Prime Minister stated that Van Dhan, Jandhan and Goverdhan Schemes had the potential to change the tribal-rural economic system. All these three schemes in tandem need to be promoted for this purpose by the State Governments.

Under Van Dhan Scheme, 10 Self Help Groups of 30 Tribal gatherers each have been constituted at Bijapur, Chhattisgarh. They are then trained and provided with working capital to add value to the products, which they collect from the Jungle.  Working under the leadership of Collector, these groups can then market their products not only within the States but also outside the States. Training and technical support is provided by TRIFED.

Van Dhan Mission is an initiative for targeting livelihood generation for tribes by harnessing non-timber forest produces, the true wealth of forest i.e. Van Dhan with an estimated value: Rs.2 Lakh Cr. per year. It shall promote and leverage the collective strength of tribes (through SHGs) to achieve scale. It also aims at build upon the traditional knowledge & skill sets of tribes by adding technology & IT for value addition. Further it is to set-up tribal community owned Van Dhan Vikas Kendras (the Kendra) in predominantly forested tribal districts. A Kendra shall constitute of 10 tribal SHGs, each comprising of upto 30 tribal NTFP gatherers or artisans i.e. about 300 beneficiaries per Kendra.

Value addition assumes critical importance in ensuring remunerative prices to the tribals in this approach. Three stage value addition would be the corner stone for enhancing incomes of the tribals under the scheme. The grass root level procurement is proposed to be undertaken through SHGs associated with Implementing Agencies. Convergence and Networking with other Govt. departments/scheme shall be undertaken to utilise the services of existing SHGs like Aajeevika, etc. These SHGs shall be appropriately trained on sustainable harvesting/collection, primary processing & value addition and be formed into clusters so as to aggregate their stock in tradable quantity and linking them with facility of primary processing in a Van Dhan Vikas Kendra.

The scheme has huge potential to empower the tribals. The convergence of the scheme with Panchayati Raj is envisaged. Initially, the focus of the scheme will be in aspirational districts and gradually the scheme will be implemented in all tribal areas, Tribal Affairs Minister Shri. Jual Oram explained.

7-May-2018: Ministry of Tribal Affairs to expand Van Dhan Vikas Kendras in Tribal Districts across the country

After the launch of the Van Dhan Vikas Kendra at Bijapur by the Prime Minister, Shri Narendra Modi on 14th April, 2018 and his call to converge Jan Dhan, Van Dhan and Govardhan Schemes, the Ministry of Tribal Affairs, Government of India proposes to expand Van Dhan Vikas Kendras in Tribal Districts across the country. 

As per the plan, TRIFED  will facilitate establishment of MFP-led multi-purpose Van Dhan Vikas Kendras, a cluster of 10 SHGs comprising of 30 tribal MFP gatherers each, in the tribal areas. This initiative is aimed at mainstreaming the tribal community by promoting primary level value addition to MFP at grassroots level. Through this initiative, the share of tribes in the value chain of Non-Timber Forest Produce is expected to rise from the present 20% to around 60%. About 3000 such Van Dhan Kendras are proposed to be set up in two years in the forested Tribal Districts of the country. To begin with, this initiative is proposed to be taken up on priority in the 39 Districts with more than 50% tribal population and to then gradually be expanded to other Tribal Districts in India.

The scheme will be implemented through Ministry of Tribal Affairs as Nodal Department at the Central Level and TRIFED as Nodal Agency at the National Level. At State level, the State Nodal Agency for MFPs and the District collectors are envisaged to play a pivot role in scheme implementation at grassroot level. Locally the Kendras are proposed to be managed by a Managing Committee (an SHG) consisting of representatives of Van Dhan SHGs in the cluster.

The initiative aims to promote MFPs-centric livelihood development of tribal gatherers and artisans. MFP or what may be  more aptly referred to as Non Timber Forest Produces (NTFPs) are the primary source of income and livelihood for about 5 crore tribal people in the country.  Notably, most of the tribal Districts in India are forested Districts. Tribes have enormous traditional skills in the processes involved in collection and value addition of NTFPs. Based on local skills and resources the ideal model of tribal development has, therefore, to be NTFP centric.

In the past, the Government of India has brought in certain reforms in the sector through Provisions of Panchayats (Extension to Scheduled Areas) Act, 1996 and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 which conferred ownership rights on tribal Gram Sabhas in respect of MFP found in their area.

In 2014, the Scheme of MSP for MFP was introduced which provides minimum support price to MFP gatherers for selected MFPs. While the steps are in right direction, however, most of the trade related to the MFPs is unorganized in nature, which has led to low returns to the gatherers and high wastages due to limited value addition. Thus, a more holistic approach with robust institutional mechanisms is required for strengthening the backward and forward linkages of MFP supply chain and particularly for mainstreaming the tribal community.

The Prime Minister while launching the pilot project at Bijapur District, Chhattisgarh on 14.04.2018 stated that the “Van Dhan, Jan Dhan and Govardhan would be the basis for transforming the rural and tribal economy in the future”. 

Key Highlights of Van Dhan Initiative:

At unit level, aggregation of produce would be done by SHGs having about 30 members each forming Van Dhan Vikas ‘Samuh’. The SHGs would also undertake primary value addition of the MFPs using equipment such as small cutting and sieving tools, decorticator, dryer, packaging tool etc. based on MFPs available in the area.

A typical Van Dhan Vikas Samuh would have the following facilities:

Provision for required building/ infrastructure support to be established in one of the beneficiary’s house/ part of house or Government/ gram panchayat building

Equipment/ Tool Kit comprising of equipment such as small cutting and sieving tools, decorticator, dryer, packaging tool etc. based on MFPs available in the area.

Fully equipped training facilities for a batch of 30 trainees with provision for raw material for training purpose and supply of trainee kits (comprising of bag, scribbling pad, pen, brochures, training manual, booklet etc.)

Provisioning of working capital for the SHGs through tie up with financial institutions, banks, NSTFDC etc.

A cluster of ten such SHGs within the same village shall form a Van Dhan Vikas Kendra. Subject to successful operations of the samuhs in a Kendra, common infrastructure facilities (pucca Kendra) may be provided to the Kendra in the next phase in terms of building, warehouse, etc. for use of the samuh members

An illustrative list of major MFPs which may be covered under the initiative are tamarind, mahua flower, mahua seed, hill broom, Chironjee, honey, Sal seed, Sal leaves, bamboo split, myrobalan, mango (amchur), amla (churan/candy), seed lac, Tez patta, cardamom, black pepper, turmeric, dry ginger, cinnamon, coffee, tea, sea buckthorn tea, etc. Apart from these, any other MFP with potential for value addition may be included.

6-Apr-2018: Ministry of Tribal Affairs to launch first ever “Van Dhan Vikas Kendra” at Bijapur, Chhattisgarh

Minor Forest Produce (MFP) is a major source of livelihood for tribes living in forest areas.  The importance of MFPs for this section of the society can be gauged from the fact that around 100 million forest dwellers depend on MFPs for food, shelter, medicines and cash income. It provides them critical subsistence during the lean seasons, particularly for primitive tribal groups such as hunter gatherers, and the landless. Tribes derive 20-40% of their annual income from MFP on which they spend major portion of their time. This activity has strong linkage to women’s financial empowerment as most of the MFPs are collected and used/sold by women. MFP sector has the potential to create about 10 million workdays annually in the country.

Ministry of Tribal Affairs has taken a number of initiatives for socio economic development of tribes like introduction of Forest rights Act, PESA Act and has been implementing schemes for development of MFP by providing financial support to State TDCCs and TRIFED for market development of MFPs. Recognizing the critical importance which MFP hold for tribes and its potential to create large scale employment opportunity thereby, helping in reducing poverty and increasing empowerment of tribes particularly women and poor people of the poorest and backward districts of the country, Govt. of India has introduced an ambitious scheme of “Mechanism for marketing of Minor Forest Produce (MFP) through Minimum Support price (MSP) and development of Value chain for MFP”.

The scheme was started with the objective of providing fair price to MFP gatherers, enhance their income level and ensure sustainable harvesting of MFPs. The MSP scheme seeks to establish a framework to ensure fair prices for the produce collected by them, assurance of buying at a particular price, primary processing, storage, transportation etc. while ensuring sustainability of the resource base. It is a holistic scheme for development of MFP trade and covers 24 MFPs.

Value addition assumes critical importance in ensuring remunerative prices to the tribes in this approach. Three stage value addition would be the corner stone for enhancing incomes of the tribes under the scheme. The grass root level procurement is proposed to be undertaken through SHGs associated with Implementing Agencies. Convergence and Networking with other Govt. departments/scheme shall be undertaken to utilise the services of existing SHGs like Aajeevika, etc.  These SHGs shall be appropriately trained on sustainable harvesting/collection, primary processing & value addition and be formed into clusters so as to aggregate their stock in tradable quantity and linking them with facility of primary processing in a Van Dhan Vikas Kendra. The stock after primary processing shall be supplied by these SHGs to the State Implementing Agencies or direct tie up for supply to corporate secondary processor. For creation of secondary level value addition facility at district level and tertiary level value addition facility at State level, Big Corporates shall be involved under PPP model. This PPP model will be based on utilising Private entrepreneur skills in undertaking processing as well as marketing of the produce and Central/ State Govt. support in terms of creating infrastructure and providing enabling environment for undertaking value addition of systematic scientific lines. These will be sophisticated large value addition hubs managed by Private entrepreneurs.

The Ministry of Tribal affairs has approved establishment of the first  multipurpose “Van Dhan Vikas Kendra” on pilot basis for establishment in Bijapur  District of Chhattisgarh State for providing skill upgradation and capacity building training and setting up of primary processing and value addition facility. This first model Van Dhan Vikas Kendra is being implemented  for training of 300 beneficiaries with a total outlay of Rs 43.38 lakhs for training, providing equipments & tools for primary level processing and infrastructure & building for housing the Kendra. This Kendra to start with will have processing facility for Tamarind brick making, Mahua flower storage facility and Chironjee cleaning and packaging.

TRIFED has assigned the work for establishment of this pilot Vikas Kendra in Bijapur District of Chhattisgarh to CGMFP Federation and Collector, Bijapur would be the coordinating force. The selection of the tribal beneficiaries and formation of the SHGs has been undertaken by TRIFED and the training is scheduled to start from 10th April, 2018. To start with Van Dhan Vikas Kendra is being established in a Panchayat Building so that the primary processing can be commenced by the SHGs. The Kendra will be shifted to its own building once the same is ready.

The Van Dhan Vikas Kendras will be an important milestone in economic development of tribes involved in collection of MFPs by helping them in optimum utilization of natural resources and provide sustainable MFP-based livelihood in MFP-rich districts.