ACKNOWLEDGEMENT

We acknowledge the guidance, assistance and help provided by various persons at different
stages of the present study. First of all we are grateful to Mr. Manoj Pattnaik, Reporting officer
and Mr. Sanjoy Pattnaik, Secretary of RCDC for providing us opportunity and full-fledged
support to conduct this study. We are extremely thankful to other field and support staff of the
RCDC for their support and guidance especially Mr. Rupen Pattnaik and Mr. Sukant Kumar
Jena for providing most valuable field level support.

We are also thankful to IRMA and OTS Coordinator, Prof. Jayant Negi for providing this
wonderful opportunity to implement our learning in field level work.

We would like to thank our faculty guide Prof. Haribandhu Panda for his support.

Deepti Ranjan Bedbak (24009)

Sushanta Kumar Tripathy (24068)
Vijay R Rayanagoudar (24036)

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 EXECUTIVE SUMMARY
I Title : Developing a NTFP Business Plan for Undivided
Koraput District of Orissa
II Organisation : Regional Center for Development Cooperation
(RCDC)
III Reporting Officer : Mr. Manoj Pattnaik
IV Faculty Guide : Prof. Haribandhu Panda
V Student’s Name : Deepti Ranjan Bedbak (24009), Vijay R
Rayanagoudar (24036) and Sushanta Ku. Tripathy (24068)
Objectives:
1) To identify the products that give maximum realization based on certain criteria.2)To provide better
value realization to the primary collectors for their NTFP collections.3)To provide regular and timely
market information on NTFP trade.4)To provide strategies for procurement of NTFP.5)To provide
regular and timely supply of market information on NTFP trade.
Scope of the study:
The study was restricted to undivided Koraput districts of Orissa. NTFP trading involves a lot of secrecy
with most of the traders not opening up the data we required and the Gram Panchayats not maintaining
the data properly.
Methodology and Sources of data:
Included surveys of 10 wholesalers at Saloor and Jagdalpur and surveys of 50 small & large traders in
the four districts namely; Koraput, Nabarangapur, Rayagada and Malkangiri with semi-structured
questionnaire. In depth personal interviews of primary collectors and SHG group members. Informal
discussions with the SHGs and various NGOs, Govt officials, Forest department officials were also
done. Secondary data from the TDCC, Forest department and gram panchayats were also collected.
Used product selection matrix to select the best possible NTFP products for various clusters of a
particular district.
Major findings and conclusions:
There is a very high amount of exploitation of the tribal by the traders who procure the produces in
almost half the price that they realize after selling by some simple value addition. The exploitation is
more so because of the timely credit being supplied by the traders to the needy primary collectors during
scarcity. There is scope for lots of simple value addition that can fetch good realization to the primary
collectors. There is an urgent need for intervention to alleviate the exploitation of the tribals. Using
product selection matrix for different product it has been seen that there is a lot of scope for tamarind,
amla, sialileaves, hill brooms, honey and mahua business in the undivided Koraput district spread across
different clusters. But only 30-60 % of the total produce is being traded. The market prices are highly
fluctuating & mostly dependent on the supply and the season. Lack of knowledge about proper
harvesting techniques; insufficient market information, unsure prices for the produces etc. are some of
the bottlenecks the primary collectors face in the trade.
Recommendations:
Forming SHG can strengthen the tribal population & avoid exploitation to a certain extent. The tribal
can get better value realization for their collections (of forest produce) by doing small value addition
and mass marketing through SHGs. We recommend formation of SHGs at various clusters identified
which shall procure goods from the primary collectors at a rate higher than the existing market price (as
part of the procurement plan). Then process the goods & sell it to the major wholesalers outside the state
bypassing some of the intermediaries in the value chain to get better price. The recommendation is
product wise and cluster wise. Setting up of small enterprises for further value addition for some
products viz. hill broom, sialileaves and honey is also being proposed.

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 TABLE OF CONTENT

Chapter Title Page No.

ACKNOWLEDGEMENT i
EXECUTIVE SUMMARY ii
LIST OF TABLES v
LIST OF FIGURES vi
LIST OF ANNEXURES vii
LIST OF ABBREVIATIONS viii
I INTRODUCTION 1
1.1 The Business Plan 4
1.2 Mission of the Business 5
1.3 Vision of the Business 5
1.4 Objectives of the Business 5
1.5 Scope of the Study 6
1.6 Methodology and Sources of Data 6
1.7 Limitations of the Study 6
1.8 Chapter Plan 7
II REVIEW OF LITERATURE 8
2.1 Policy of the State Government on Procurement and Trade of NTFPs 8
2.2 Major Issues in NTFP Management and Trade 11
2.3 Fit Requirement 12
III THE PRODUCT AND THE MARKET 14
3.1 The Nature of the Product 14
3.2 The Nature of the Actors Involved 16
3.3 The Nature of the Market 17
3.4 Characteristics of the Products Selected 20
3.5 The Existing Market of NTFP 39
Chapter Title Page No.

IV PROCUREMENT PLAN 42
4.1 Procurement Plan for Koraput District 43
4.2 Procurement Plan for Malkanagiri District 45
4.3 Procurement Plan for Rayagada District 47
4.4 Procurement Plan for Nabarangapur District 49
V SHG FEDERATION 51
5.1 Competitive Advantages of the SHG Federation 51
5.2 Costs, Risks and Benefits of SHG Federations Vis-a-Vis Existing 53

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 Channels
5.3 Area of Operation of the SHG Federation 54
5.4 Structure and Composition of the SHG Federation 54
5.5 Activities of the SHG Federation 57
5.6 Compliance Ensuring Mechanisms 60
5.7 Risks and Benefits 61
5.8 Quality Assessment and Pricing Methods 62
VI MARKETING PLAN 63
6.1 Pricing Strategy 65
6.2 Promotional Strategy 65
VII FINANCIAL DETAILS 66
7.1 Terms of exchange 66
7.2 Self-reliance – Dependence - Locus of control 66
7.3 Liability of members 67
7.4 Nature of Costs and Risk (Surplus/loss) - Sharing mechanisms 67
7.5 Financial Analysis 67
VIII SUMMARY AND CONCLUSION 73
REFERENCES 74
ANNEXURES

LIST OF TABLES

Table No. Title Page No.

1. District Wise Availability of Hill Broom 20

2. Different Grades Hill Broom 21
3. Different Types of Hill Brooms in Malkanagiri 22
4. District Wise Availability of Mahua 23
5. District Wise Availability of Tamarind 24
6. District Wise Availability of Siali Leaves 28
7. District Wise Potentiality of Green Amla 34
8. District Wise Availability of Honey 36
9. Details of the Clusters Identified in Koraput District. 43
10. Details of the Clusters Identified in Malkanagiri District 46
11. Details of the Clusters Identified in Rayagada District 47
12 Details of the Clusters Identified in Nabarangapur District 49
13 Nature of Activities of the SHG Federation 60
14 Financial Details of Raw Materials Requirements 67
15 Net Profit from Sales 68
16 Financial Ratios 68

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 LIST OF FIGURES

Serial No. List of Figures Page. No.

1. Fit Requirement 12
2. Widening the Scope of the Produce Tamarind 25
3. Trade Channel of Tamarind 27
4 Widening the Scope of the Produce Amla 34
5 Price Trend of Amla 36
6 Structure of intermediaries in the Value Chain of NTFP Produce 41
7 Different Clusters in Koraput District 43
8 Different Clusters in Malkanagiri District 45
9 Different Clusters in Rayagada District 47
10 Different Clusters in Nabarangapur District 49
11 Structure of a SHG Federation 56
12 Marketing Through SHG Federation (Proposed Value Chain) 64

LIST OF ANNEXURES

Annexure Title Page. No.

1. LIST OF NTFP ITEMS i

2. NTFP PRODUCTS – BOTANICAL NAMES,USES AND iii

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 POTENTIALITY
3. SEASONALITY INDEX OF VARIOUS NTFP PRODUCTS v
4 IMPORTANT LOCAL WEEKLY MARKET PLACE OF NTFP vi
FOR NABARANGAPUR DISTRICT
5 IMPORTANT LOCAL WEEKLY MARKET PLACE OF NTFP vi
FOR MALKANAGIRI DISTRICT
6 WEEKLY NTFP PRICE BETWEEN JUNE AND JULY 2004 vii
7 PRODUCT SELECTION MATRIX MODEL viii
8 POSSIBLE ENTERPRISES xv
9 PROCUREMENT AND SELLING PRICES OF VARIOUS NTFP xix
10 FINANCIAL STATEMENTS FOR AMLA xx
11 FINANCIAL STATEMENTS FOR TAMARIND xxiii
12 FINANCIAL STATEMENTS FOR SIALI LEAVES xxvi
13 FINANCIAL STATEMENTS FOR HONEY xxix
14 FINANCIAL STATEMENTS FOR HILL BROOM xxxii
15 FINANCIAL STATEMENTS FOR MAHUA xxxv
16 CHECK LIST FOR INFORMATION COLLECTION FROM xxxviii
PRIMARY COLLECTORS AND FOREST OFFICIALS
17 CHECK LIST FOR INFORMATION COLLECTION FROM xLi
TRADERS/AGENTS

LIST OF ABBREVIATION

CYSD Center for Youth and Social Development

DFO Divisional Forest Officer
FD Forest Department
GP Gram Panchayat
KL Kendu Leaf
MFP Minor Forest Produce
MT Metric Tonne
NEWS National Education and Welfare Society
NGO Non Government Organisation
NTFP Non Timber Forest Produce
NWFP Non Wood Forest Produce
OFDC Orissa Forest Development Corporation
ORMAS Orissa Rural Development and Marketing Society
OTS Organisational Traineeship Programme
RCDC Regional Center for Development Cooperation
SC Scheduled Caste

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SDS Social Development Society
SHG Self Help Group
ST Scheduled Tribe
TBO Tree Borne Oilseed
TDCC Tribal Development Cooperative Corporation of Orissa Ltd.

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