Non-Timber Forest Products

And Rural Livelihoods

with special focus on Existing Policy and Market Constraints

A study in Bolangir and Nuapada districts

on behalf of DEPARTMENT OF INTERNATIONAL DEVELOPMENT

Government of UK

for the proposed

WESTERN ORISSA RURAL LIVELIHOODS PROJECT

by

VASUNDHARA Bhubaneswar

Non-Timber Forest Products And Rural Livelihoods

A study in Bolangir and Nuapada districts

with special focus on

Existing Policy and Market Constraints

Research Team Neera M Singh

Manas Ranjan Mishra Prateep Kumar Nayak Shiv Shankar Santra

Rekha Panigrahi Pravat Chandro Sutar

Prasant Kumar Mohanty

October 1998

Vasundhara Private Plot 29, Near OMFED Chowk

Chandrasekharpur Bhubaneswar – 751016

Orissa

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CONTENTS I Background 1.1 Objectives of the Study 1.2 Methodology

II NTFP Policies in Orissa III NTFPs – District Overview for Balangir District and Recent Development in Khariar Division. 3.1 Forests in Balangir 3.2 Recent changes in NTFP disposal in Khariar Forest Division IV Village Studies –NTFP diversity, uses and Dependence 4.1 Village studies in Balangir District 4.1.1 Brief profile of study villages 4.1.2 Common analysis 4.2 Village studies in Nuapada District 4.2.1 Maharajore Village 4.2.2 Bhainsadadar village 4.3 Socio-economic Profile of Collectors V Gender roles in NTFP collection and marketing VI Economic Dependence on NTFPs. VII Product Profiles (including Market & micro-enterprises) 7.1 Kendu Leaf 7.1.1 Regulations over Kendu leaf Trade 7.1.2 Kendu Leaf Grant to Gram Panchayats and Panchayats Samities 7.1.3 Kendu Leaves Production in Bolangir 7.1.4 Delayed Payment and Under-Payment for Kendu Leaf: 7.2 Mahua Flower 7.2.1 Use 7.2.2 Mahua Flowers as “Forest Produce” 7.2.3 Availability and Production 7.2.4 Method of Collection 7.2.5 Sharing of produce between Mahua tree-owners and collectors 7.2.6 Production of Mahua Flowers in Bolangir district 7.2.7 Aspects of the market setup 7.2.8 Mahua Storage Enterprise 7.2.9 Examples of Mahua based Micro-enterprises 7.3 Mahua Seeds 7.3.1 Case: Gadiajore Women’s Group 7.4 Char Seeds 7.5 Sal seeds 7.6 Other NTFP based Micro-enterprises 7.6.1 Broom Grass Case Study VIII Exploitation Of Primary Collectors In NTFP Trade: IX Major findings and recommendations 9.1 NTFP policy change 9.2 Royalty of NTPFs 9.2.1 Kendu leaves 9.3 Micro-Enterprises for local level/primary collectors institutions/cooperatives for procurement,

processing and marketing 9.4 Role of TDCC,OFDC etc. 9.5 Establishment of R & D facilities Annexures

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I List of NTFPs in the surveyed villages of Bolangir and Nuapada II Availability, collection, processing and marketing of NTFPs III Office Order no 93/ dated. 29/4/98 of DFO, Khariar Road, for auctioning of NTFPs IV Disposal of NTFP items by Range Officers on realization of Departmental Royalty for the purchasers

of MFP items V Major centers of NTFP production and marketing in Balangir VI Possible benefit to KL pluckers through share of Royalty VII Various types of NTFPs collected for consumption only (use and local name). Tables Table 1.1 Main characteristics of the study villages Table 1.2 Sample size for the study villages. Table 1.3 a Classification of households as per Wealth Ranking (sample HH out of the village), Village

Kharlikani. Table 1.3 b Classification of households as per Wealth Ranking (sample HH out of the village), village

Kandrabhatta Table 1.4c Classification of households as per Wealth Ranking (sample HH out of the

village), village Gadiajore Table 2.1a Collection of Sal seeds in the district Table 2.1 b Agents,Collection of Royalty and Income to the primary collectors Table 2.1c Loss due to Privatization during 95-97 Table 3 Listing in descending order of value of production based on Govt. prices Table 3.1 Listing of items in descending order of value of output* Table 4.1 List of NTFPs in the study villages. Table 4.2 Availability, Collection, Processing and Marketing of NTFPs Table 5.1 Gender Roles in NTFP Collection, Processing & Marketing of Marketed NTFPs Table 5.2 Gender Roles in Collection and use of Consumption NTFPs. Table 5.3 Gender roles in agricultural activities Table 6 a1 Contribution of NTFPs to Household Income of vill.Bhainsadadar of all HHs Table 6 a2 Contribution of NTFPs to Household Income of vill.Bhainsadadar of Landless Households Table 6 a3 Contribution of NTFPs to Household Income of vill.Bhainsadadar of marginal farmers Table 6 a4 Contribution of NTFPs to Household Income of vill.Bhainsadadar of small

farmers Table 6 a5 Contribution of NTFPs to Household Income of vill.Bhainsadadar of medium

farmers Table 6 a6 Contribution of NTFPs to Household Income of vill.Bhainsadadar of big

farmers Table 6 b1 Contribution of NTFPs to Household Income of vill.Kharlikani of all HHs Table 6 b2 Contribution of NTFPs to Household Income of vill.Kharlikani of Landless Households Table 6 b3 Contribution of NTFPs to Household Income of vill.Kharlikani of marginal farmers Table 6 b4 Contribution of NTFPs to Household Income of vill.Kharlikani of small

farmers Table 6 b5 Contribution of NTFPs to Household Income of vill.Kharlikani of medium

farmers Table 6 b6 Contribution of NTFPs to Household Income of vill.Kharlikani of big farmers Table 6 c1 Contribution of NTFPs to Household Income of vill.Kandrabhatta of all HHs Table 6 c2 Contribution of NTFPs to Household Income of vill.Kandrabhatta of Landless Households Table 6 c3 Contribution of NTFPs to Household Income of vill.Kandrabhatta of marginal farmers Table 6 c4 Contribution of NTFPs to Household Income of vill.Kandrabhatta of small

farmers Table 6 c5 Contribution of NTFPs to Household Income of vill.Kandrabhatta of medium

farmers Table 6 c6 Contribution of NTFPs to Household Income of vill.Kandrabhatta of big

farmers

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Table 6 d1 Contribution of NTFPs to Household Income of vill.Maharajore of all HHs Table 6 d2 Contribution of NTFPs to Household Income of vill.Maharajore of Landless Households Table 6 d3 Contribution of NTFPs to Household Income of vill.Maharajore of marginal farmers Table 6 d4 Contribution of NTFPs to Household Income of vill.Maharajore of small

farmers Table 6 d5 Contribution of NTFPs to Household Income of vill.Maharajore of medium

farmers Table 6 d6 Contribution of NTFPs to Household Income of vill.Maharajore of big farmers Table 6 a1 Contribution of NTFPs to Household Income of vill.Bhainsadadar of all HHs Table 6 a2 Contribution of NTFPs to Household Income of vill.Bhainsadadar of Landless Households Table 6 a3 Contribution of NTFPs to Household Income of vill.Bhainsadadar of marginal farmers Table 6 a4 Contribution of NTFPs to Household Income of vill.Bhainsadadar of small

farmers Table 6 a5 Contribution of NTFPs to Household Income of vill.Bhainsadadar of medium

farmers Table 6 a6 Contribution of NTFPs to Household Income of vill.Bhainsadadar of big

farmers Table 7a Gender Composition of Kendu Leaf Collectors as per Sample Households Table 7b Composition of KL Collectors vrs Cardholding pattern by age group and

Gender, Maharajore Village Table 8 a KL Grant to the Bolangir District Table 8 b1 Quantity of Kendu Leaves Produced (in Quintals) Table 8c Average Sale Price for Bolangir vs. Average Sale Price in the State Table 8d Total Sale Proceeds for the District and for the State Table 9a Per quintal Expenditure on Mahua Flower storage and Transport Table 9b A Typical Price Variation Series (1998) Table 9c Flow of Mahua from Primary Gatherer /Producer Table 9d Mahua Storage Enterprise Table 10a Costs involved in Extraction of Mahua oil in Ghani Table 10b Income from Mahua Oil Extraction Enterprise Table 11 Income per Labor Day in Broom grass Processing Enterprise Charts Chart 1 Village and Higher Level Price Variation in Mahua Flower Price

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ACKNOWLEDGMENTS

We would like to acknowledge the support of the following for this study: Antodaya, Kaniguma, Kalahandi District Forestry Forum, Balangir DFO, Balangir Shri P.C. Mallick, DFO, Khariar Regional Centre for Development Cooperation, Bhubaneswar Sabuja Biplab, Balangir Lokdrusti, Khariar Vasundha Vikas Samiti, Suliamal, Patnagarh Viswas, Khariar And last but not the least, our thanks to the villagers of Kandrabhatta, Kharlikani, Godiajore, Maharajore, Bhainsadadar and Landapathar for the time and knowledge that they shared with us. This report has drawn heavily on the insights emerging from a recently completed research Project on NTFP supported by Vikalpa and Bio-Diversity Support Program; and another ongoing research Project on Kendu Leaves and NTFP based enterprises supported by Action-Aid. The discussion and debate on NTFP issue in the NGO community and at different forums has informed the Policy analysis presented in this report.

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I BACKGROUND The lives and livelihoods of people living in and around forests are critically and intricately linked to forests. Rural people depend on forests for a variety of products. Apart from timber and fuel-wood, rural women and men gather a large number of Non-Wood Forest Products for consumption as well as for sale. Rural poor especially the landless depend on marginal common lands and State forestlands for gathering products for consumption as well as sale in the lean summer months. Thus issues of rights and access to forests and forest products are issues of basic livelihood to a vast majority of rural people. Apart from agriculture and wage labor, collection and sale of NTFP are a significant livelihood activity for the rural poor. This livelihood option, however, has not received sufficient attention till now. Foresters have been giving more attention to the more significant revenue generating product i.e. Timber, relegating all other products as relatively insignificant “Minor Forest Products”. While, other rural development interventions have had little interface with forests and forestry and have not taken into cognizance dependence of poor on forest lands and marginal common lands. Forests have primarily been managed with revenue objectives and the function of forests as provider of variety of products and services to the local population has been severely over-looked. With timber felling being banned all over, the erstwhile Minor Forest Products are now becoming the major forest products from the forests. Even for management of Non-Timber Forests Products and its trade, revenue objectives get primacy despite the 1988 Forest Policy laying emphasis on local needs and rights of tribal women and men. Collection of Non-Timber Forest Products is a very labor intensive, low-returns activity and is hence taken up by the poorest sections in the village having the lowest possible opportunity cost of their time. In complete disregard to subsistence and economic dependence of local people and their ethnic/natural rights, Forests and all the products growing therein are treated as State Property and gatherers are treated as mere labor force. It is ironic that while hundreds of millions of rupees are spent on Poverty alleviation; the economic interests of the poorest of the citizens are blatantly over-looked for a gain of few millions to the State Exchequer. In Orissa, apart from the three nationalized forest products, trading rights for almost all-marketable NTFPs are given away as monopoly leases. This situation is peculiar to Orissa, and has been termed as “illegal” after almost ten years of existence by the High Court. Here it is not just the gains to State Exchequer which guide the decisions relating to placing of forests, forest products and livelihoods in hands of private parties and industries. In fact, even the State has been losing crores of revenue through these monopoly lease arrangements. Despite serious criticism of the State’s NTFP Policies from all quarters and serious protests, there has been no change in the situation. This poses serious questions about the State’s intents and commitment to its poor people. Dr.N.C. Saxena, Secretary Rural Development, Government of India in his field notes after visit to Nuapada district in April 1998 quotes the discussion at a Workshop in Khariar. “Unless structural changes are made both in land relations (and access of poor to common lands and `State lands’) and empowerment of the people, sinking more money would only lead to more leakages and will be of little benefit of the people” (italic words added). He also quotes another remark by the Collector Phulbani that if policies related to minor forest produce are made people friendly, he would not require any rural development funds because the change in policies would itself lead to increase in people’s income by several times in a sustained manner. Any serious rural development intervention has to address these problems. Without addressing some of these structural problems, we would only be tinkering with the peripherals, and at best improving the “livelihoods” of the peripheral circle that shield the inner core of the poorest from receiving any benefits from any development project/ intervention. 1.1 OBJECTIVES OF THE STUDY In this backdrop of critical importance of NTFPs for the livelihood of the poorest, the study was taken up with the specific objectives of • exploring the dependence of forest neighboring population, esp. the Landless and the poorest on forests and

NTFPs; • understanding the policy and market constraints restricting the access of poor to the full potential offered by

these NTFPs and • analyzing how these constraints can be eased out.

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1.2 METHODOLOGY Study Components The study consisted of the following components: • Village Studies • Market studies • Micro-enterprises/ NGO interventions for NTFP based enterprises • Desk-study to understand the State level Policy Environment for NTFP trade. Participatory processes and exercises were adopted for the purpose of data collection for village studies including PRA tools, Group discussion, Focused group / sub-group discussions, Personal interviews / household survey. After the data was collected it was arranged in a master sheet for further analysis. Village Studies 1.2.1 Selection of Village The study includes two districts i.e. Bolangir and Nuapada. Due to time limitation the study was restricted to two villages in Nuapada district and two in Bolangir district as per the TOR. In addition to these villages some work was done in Gadiajore village in Bolangir though not in as great a detail as the four study villages. Since the study focuses on Non-Timber Forest Produce the common criteria which was given priority in case of all villages was its proximity to a forest area and a certain basic minimum level of NTFP availability. Apart from this the specific sampling criteria followed in selection of the villages are given below: 1. Distance from the inter-state border. 2. Tribal composition of population. 3. Geographical locations in terms of covering the major zones. 4. Approachability / Accessibility factor. 5. Distance from urban centre. Table 1.1 Main characteristics of the study villages

Bolangir district Nuapada district Kharlikani Kandrabhatta Maharajore Bhainsadadar Ethnic Composition Mixed castes. Accessibility To urban centers Close to major urban centre. Proximity to main road To forests Closer to forests. Forests condition Highly degraded.

Tribal village. Interior pocket village - away from the urban centre. Closer to forests. Dense forest.

Mixed castes. Far from the Orissa-M.P. inter-state border. Closer to forests Dense forest.

Tribal dominated Close to Orissa and Madhya Pradesh inter-state border. . Closer to forests. Dense forest.

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Anthropogenic pressure Intense biotic pressure. Twelve Panchayats depending on the same forest. Dependence on NTFPs Major dependence on fuelwood. NTFPs available are quite less.

Small villages around resulting in low pressure on the forest. Major dependence on NTFP collection, consumption, marketing and processing.

Relatively low biotic pressure. Considerable dependency on NTFP. Better approachability / accessibility.

Low biotic pressure Considerable dependency on NTFP. Poor approachability / accessibility.

1.2.2 Sampling For detailed household survey separate sampling techniques were adopted for the two districts. Sampling was done to cover all major groups on the basis of caste, land holding and occupational pattern. This was done in consultation with the villagers. TABLE 1.2 Sample size for the study villages District Village Name Total No. of HHs HHs sampled Balangir Kharlikani 132 28 Balangir Kandrabhatta 35 12 Nuapada Maharajore 74 31 Nuapada Bhainsadadar 89 32 A 30% sampling was done in both the villages of Nuapada district. The households were selected from four broad categories like Landless, Marginal farmers, Small farmers and big farmers (details given in the table). The sample size was 30% of the total households in the village and not of the households in each category. Specific formats for each NTFP item was developed on the basis of which data was collected. A slightly different sampling technique was followed in the two villages of Bolangir district. The villagers were involved in a Wealth Ranking exercise wherein they put the households of the village into different categories. While doing so they assigned various indicators to each such category. Sample households were chosen from those categories on the basis for data collection / household survey. Wealth Ranking in Balangir villages: Participatory Wealth Ranking method was used to classify households according to well-being as per villagers’ perception in all the three villages of Bolangir. In all the three villages self-sufficiency in food (i.e. paddy) came out as the main criteria indicating wealth. The relative importance of forests in livelihood options for the poor is indicated by dependence on forests emerging as one of the Wealth/ Poverty indicators. The poor and the needy were said to have relatively higher dependence on forest products to make the two ends meet. Even in comparisons of income from paddy with income from NTFP, it is evident that forests is one

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of the most significant livelihood support as important or at times more important than agriculture for some of poorest people. Table 1.3 a: Classification of households as per Wealth Ranking (sample HH out of the village), Village Kharlikani Standard of living

Total no. of households

Caste groups Indicators

Good Five Kulta, Brahmin and Mirdha

• Agriculture is the major source of income and employment.

• Engage two to five persons as haliya (contract labor) for agriculture.

• Paddy production is enough to meet the annual needs.

• Besides paddy other crops are also grown, namely, sugarcane and vegetables).

• Need not work as laborers. • Big family • Do not sell fuel wood or Sal

leaf cups for subsistence. • Size of the land holding and

encroached land is more. Medium Twenty-five Kandha, Sahara,

Keunta, Goud and Mirdha

• Paddy production from own field is sufficient for four to five months.

• They possess up to five acres of productive land and the encroached land occupancy is also less.

• Income through labor work is seasonal. • Need based involvement in selling of

fuelwood. • Family size is also small.

Poor One hundred and two

All the above caste groups are represented though the majority of families are tribals.

• Most of the families are landless and do not even have homestead land. Majorities of the huts are built on government wasteland and other encroached land.

• A total dependency on labor throughout the year.

• Fuelwood selling and stitching of Sal leaf cups is done as a supplemental income.

• As there is no assured source of income hence a

hand to mouth existence persists. Table 1.3 b: Classification of households as per Wealth Ranking (sample HH out of the village), village Kandrabhatta Standard of living

Total no. of HHs

Caste groups

Indicators

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Good 3 Bhuen, Majhi.

• Have a land holding up to a maximum of ten acres. • Agriculture is the major source of income and

employment. • Have fruit yielding trees that provide supplemental

income. • Need not seek employment through labor work. • Have negligible dependency on forest based products

for food. Medium 15 Bhuen,

Majhi, Mallick

• Have a land holding up to a maximum of five acres. • Seek occasional employment as wage labor. • Involvement in own land during the agricultural

season. • Have comparatively lesser number of fruit trees. • Depend more on forest based products for a

supplemental source of income. Poor 9 Bhuen,

Majhi, Mallick

• Have a small land holding of not more than two acres, and in some cases the land is not cultivable.

• Mostly depend on wage labor for livelihood. • Number of fruit trees is minimal. • Dependency on forest is greater, both for food and

income. Table 1.4 c: Classification of households as per Wealth Ranking (sample HH out of the village), village Gadiajore Standard of living

Total no. of HHs

Caste groups

Indicators

Good 5 General Thakurs.

• Have a land holding of more than five acres. • Agriculture is the major source of income and

employment. • Have fruit yielding trees that provide supplemental

income. • Need not seek employment through labor work. • Need not migrate for employment .

Medium 22 General, SC & S.T. Seth, Tadi, Nayak, Bagh, Bariha.

• Have a land holding up to a maximum of five acres. • Seek occasional employment as wage labor and

migration. • Involvement in own land during the agricultural

season. • Have comparatively lesser number of fruit trees. • Depend more on forest based products for a

supplemental source of income. Poor 25 Bhuin,

Tadi, Bariha, mainly SC & ST

• Landless families and land up to 1.5 acres. • Mostly depend on wage labor, and forest for

livelihood. • Migrate four times a year for employment • Dependency on forest is the greatest, both for food

and income. `

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1.2.3 Study Team The study team comprised of five persons for the purpose of the village study. Two sub-teams, each with two members, were formed and each sub-team took up two villages in one district for detailed study. The fifth member of the team provided inputs in all the four cases. The sub-teams prepared the individual case reports, which were then analyzed. Two member’s teams also did marke t studies and Micro-enterprises studies.

II NTFP POLICIES IN ORISSA The Policy environment relating to NTFP trade is characterized by the following underlying tenets: • Forests are State Property thus all products growing on forests are owned by the State. • Revenue maximization for the State is the major objective of Forest Management. The laws relating to forest administration do not recognize any rights of forest dependent communities on collection, processing and sale of NTFPs, except as some customary rights, if any, of local tribals to gather and collect forest produce, for bona fide consumption. Revenue maximization objective of the State over-rides the economic interest of the poor gatherers who only figure as under-paid labor in the entire NTFP trade. The potential of NTFPs to give economic returns to the poor of the State remains grossly under-utilized. These basic tenets guiding the NTFP policies have not changed even after a decade of the National Forest Policy that emphasizes on tribals and local needs having the first charge over forests. While much Poverty Alleviation programmes seek to raise the economic levels of vast masses below Poverty line; the one intervention that can directly dramatically impact the income levels of poor has been perennially neglected. The major characteristics of the Policy environment relating to NTFP is: 2.1 NATIONALIZATION OF IMPORTANT NTFPS: The Orissa Forest Produce (Control of Trade) Act, 1981 provides the scope for State Monopoly over certain forest products, which the State may notify as Specified Forest Produce from time to time. These products even when found on private land holdings and on non-forest commons are treated as forest products [sec2 g{i (a, b, c)}, Orissa Forest Act,1972). Three of the most important NTFPs, i.e. Bamboo, Kendu leaves and Sal seeds have been nationalized. Kendu Leaves (KL) is being procured by State through Kendu leaf Department and Sal seed by OFDC/TDCC. In case of Bamboo, OFDC is the official procurer; but OFDC enters into agreements with Paper industries appointing them as Raw material procurers. Thus most bamboo forests are “leased out” to Paper industries and bamboo is made available to Paper industries at nominal rates. In fact, villagers have to pay much higher prices for Bamboo than the industry (Rs. 4.30 per piece as against an approx. rate of 15 paise per bamboo for the industry) (Saxena, 1996). The Kendu Leaf collection is defined by the Kendu leaf (Control of Trade) Act, 1962. The primary aim of the law and policy for Kendu leaf is to eliminate private trading of Kendu leaf by concentrating the production process in the hands of the State Government with resultant increase in the revenue to the State. The Primary collectors/growers are compensated only for their labor. Thus today a situation has arisen in the KL production process that for every one rupee paid to the primary collector/grower, the State appropriates a profit ranging from Rs.2.50 (1993-94) to Rs. 9.00(1989-90). There have been no attempts to share this profit with the primary collectors/growers or even to provide them with some basic facility. Nationalization has in no way helped the Kendu leaves collectors or growers (CPNR, 1996).

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2.2 NATIONALIZATION OF EVEN THE NON-NATIONALIZED NTFP ITEMS: Though de jure only three items i.e. Sal seeds, bamboo and Kendu leaf are Specified/ Nationalized, but the State has, through an administrative order, brought under its exclusive control almost all marketable NTFP through monopoly leases. A private party in the garb of a Joint Sector Company, Utkal Forest Products Ltd., was given long-term lease for 29 items for ten years in 1989. Apart from UFP, monopoly leases have been given to TDCC, OFDC and even private parties. It is surprising that after years of thriving of State sanctioned monopoly trade in non-nationalized NTFPs, it has now been “discovered” that this monopoly trade was “illegal”. And to correct this illegal practice, there was a letter from the State Ministry to the PCCF (dated 5th March 1997) specifying that the monopoly leases for the non-Nationalized NTFPs are not “Monopolies”; and that these do not constrain the Government from granting similar leases to other agencies also in respect of the same lease area. However the “monopoly lease holders’ continue to operate as the only “authorized” traders in the NTFP trade. Thus, the State controls all the threads of NTFP production process. The control of the State even extends to the designated forest products growing on private lands and non-forest Government lands. The Orissa Forest Code and Orissa Forest Produce (Control of Trade) Act, 1983 lay emphasis on encouraging the appointment of Tribal/ Labor Cooperative/ Gram Panchayats as procurement agents for NTFPs. However the involvement of grassroots level cooperatives and Gram Panchayat in NTFP trade has been completely ruled out by giving long-term State wide/division wise monopoly leases. 2.3 STATE ADMINISTERED PRICES OF NTFPS: The relevant Acts relating to NTFPs have given the responsibility of fixing administered prices of Forest Products to the State Government. For this an Advisory Committee is to function at State level for nationalized products and at the Revenue Development Commissioner (RDC) level for other forest products; to advise the State Government in matters of fixation of procurement prices of the Specified forest produces. These advisory committees are to have representation of Government, Procuring agencies, Traders, Manufacturers using NTFPs as raw materials, elected people's representatives and Growers (who produce NTFPs from their land holdings). There is no representation of Primary collectors who collect these products from forests or from non-forest commons. The committee only advises the State Government on prices and it is not mandatory for the State Government to accept the recommended price. The price fixation of other NTFPs have been decentralized from the RDCs’ level to the District level. As per the relevant Acts {OFP(CT) Act1, 1981 and OKL(CT) Act, 1962}, the prices fixed for the NTFP are mainly based on considerations of minimum wages. Prices are not worked backwards from the market prices, to provide value of these products to the primary producers. The prices fixed by the state hold have little relevance in the absence of mechanisms to ensure that these prices are paid. The monopoly leaseholders depend in varying degrees on the local sub-agents/traders for procurement of NTFPs. In reality the primary collector hardly get the State administered prices. 2.4 RESTRICTIONS RELATED TO STORAGE, TRANSPORTATION, PROCESSING AND

MARKETING:

1 The Orissa Forest Products (Control of Trade) Act, 1981, Section (7), states that while fixing the price of specified forest products, regard may be paid to, among other things, “general level of wages for unskilled labor prevalent in the unit and the provisions of the Minimum Wages Act,11 of 1948”.

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The laws related to NTFPs place restriction on the amount of NTFP that can be stored by a person, whether collectors or growers. This varies from item to item. The law also provides for registration of growers of specified forest products whose production is in excess of the specified quantity. Similarly for transporting NTFPs, transit permits issued by the forest department are required. There are a number of other restrictions governing the transportation of NTFPs. Restrictions for primary level value addition may also exist if interpretation of laws is so made by the enforcers. Higher level processing requires permission through registration from the forest department. The processor/manufacturer is also supposed to submit prescribed declaration, accounts and returns. The Forest Department is the enforcing authority for these laws. These restrictions and permits help in enforcing the trading regime determined by the laws and the policies of the Government. It was found during the study in four villages, that even though legally a household can store up to 2 quintals of Mahua flowers for consumption, villagers have faced harassment by the local excise officials and the local license holders for liquor brewing for being in possession of much less quantities. 2.5 IMPACT OF PRIVATE MONOPOLIES ON GOVT. REVENUE AND THE INCOME OF PRIMARY

COLLECTORS Private monopolies not only reduce the income of the primary collectors but also adversely affect the revenue to the Government. Collections as reported to the Government have also been going down for many of the products. Which can either be due to under-reporting of collections to avoid payment of royalty or due to actual low collections adversely affecting incomes to rural people. In this context, Sal seed procurement in the Bolangir has been compared over a period of 6 years. During the first three years, 1992 to 1994, the collection was carried out by the OFDC while the collection since then, 1995 onwards is being carried out by a private monopolistic purchaser - Priti Oils based at Rampali in Rengali block of Sambalpur District. The collection figures are provided in the following tables. TABLE 2.1a Collection of Sal seeds in the district Year Target Collection Royalty Primary Collectors’

Income (@ Rs 1.75 per kg)

Agent

1992 227 471,996 397,112 OFDC 1993 176 (-22,882) 308,028 OFDC 1994 243 36,444 425,187 OFDC 19952 250 25 13,750 43,750 PRITI 1996 250 69 15,941 120,444 PRITI 19973 120 40 18,000 69,501 PRITI 1998 43 6,450 TABLE 2.1 b Agents,Collection of Royalty and Income to the primary collectors

Years Total Quantify

Royalty Income to primary collectors

Agent

Total of 1992 to 1994 646 485,558 1,130,327 OFDC

2 Royalty was charged at Rs 100 per m.t. of collection. Penalty was charged @ Rs 50 per the shortfall of collections from the target fixed by the Government. 3 From this year onwards royalty is being charged @ Rs 150 per MT on the whole of the target amount irrespective of the quantum of actual collections.

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Total of 1995 to 1997 134 47,691 233,695 PRITI Loss due to Privatization 512 437,867 896,632 Avg. Annual Loss 171 145,956 298,877 Table 2.1c : Loss due to Privatization during 95-97 Man-days of employment lost ( at Govt. rate) 11,955 Man-days of employment lost ( at local rate) 18,680 Notional loss of subsistence person-days (calculated as equivalent of 500 gm of rice per person per day) (rice @ Rs 600 per qtl) (Rs 2.40 per day)

124,532

As can be seen from the tables privatization has reduced the income of the primary collector community by Rs 3 lakhs per annum. At the same time it has not increased the royalty of the Government. In terms of reduction in Royalty the Government has lost an estimated average amount of about 1.5 lakh rupees. In case of Sal seeds, non-collection of Sal seeds at many occasions have led the gatherers to give up collecting Sal seeds. Bolangir is not a major producer of Sal Seed. Hence such situations must be taking a serious toll of rural livelihoods being not a major Sal seed producing area and also in cases of other NTFPs collected through a private monopolistic system. It is also adequately clear that the Government is not serious about the welfare of the primary collectors. The Government has attempted to solve the problem of low royalties in Sal seeds by charging penalty of Rs 50 per MT of shortfall from the targeted amount in 1994-95 and charging royalty on the entire target amount since 1996; but has done nothing to see to it that the actual collections are enhanced. 2.6 NTFP AND JOINT FOREST MANAGEMENT: Government of Orissa (GOO) has been encouraging villagers to protect Reserved Forests from 1988. In 1993 the GOO issued a resolution to facilitate Joint Forest Management. As per this resolution, VSS (Van Samrakshan Samiti) with whom the Forest Department enters into a Joint Forest Management arrangement is supposed to get 100% of all intermediate produce from the jointly managed forests. This implies all rights over NTFP (intermediate produce) of the VSS. However this has no meaning, since regulations over NTFP trade remain the same even in JFM areas and the ownership rights over NTFP do not get transferred to or even shared with the co-managers. Surprisingly, the perspective of relating to the primary collectors/ producers of NTFP as mere labor by the State/ Forest Department does not change even when local communities get accepted as co-managers of forestlands under Joint Forest Management. Thus, instead of the promised 100% (of the value) of the intermediate produce, members of VSS only get wages for collecting NTFPs from forest lands of which they are supposed to be managers. 2.7 NTFP AND THE EXTENSION OF PANCHAYATI RAJ TO SCHEDULED AREAS

(AMENDMENT) ACT: The recent Act for Extension of Panchayati Raj to Scheduled Areas gives ownership rights over Minor Forest Produce to the Gram Sabhas in the Scheduled Areas. A committee set up to look into the implications of transfer of ownership rights to Gram Sabha in Scheduled Areas recommends that such rights (more in usufructory rights form) should not be restricted to Scheduled Areas but should be extended to all areas. Following the Central Act, the State has enacted Orissa Act for the same. However, the Orissa Act has tried to circumscribe the Constitutional Provisions of the Central Act by adding a clause `consistent with relevant laws in force’ while incorporating the Constitutional provision concerning the competence of the Gram Sabha to manage community resources and dispute resolution as per the customs and traditions of the people. Thus, tribals can have ownership rights over Minor Forest Produce, but only if the relevant laws in force allow that. This is clear violation of the Constitutional Provision of the Central Act since in case of any inconsistency the relevant laws have to be changed instead of negating the rights granted to Gram Sabha as per the Central and State Acts

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in this regard. Instead of clear rights to Gram Sabha, space has been kept for involvement of higher order Panchayati Raj institutions instead of the Gram Sabha by mentioning assignment of powers amongst the Gram Sabha and the Panchayat at the appropriate level. In practice NTFP trade modalities have not changed in Scheduled Areas even after this Act; and despite Gram Sabhas being the constitutional owners of NTFPs private and Government monopolies are outraging the rights of tribals even in the Schedule V areas. There has been a letter from the Forest Secretary, GoI on the issue to the State urging the States to implement the State Act. Over the last two years there has been considerable pressure building on the Government to justify its NTFP Policy, review and change it to ensure greater benefits to the primary collectors. The case of Mandibisi Mahila Mandal has brought forth starkly the hypocrisies of the State and the Development process. After a long struggle Aama Sangathan an apex forum of Mahila Mandals (women’s groups) including Mandibisi Mahila Mandal has got the lease to trade in broom grass and hill brooms. The very fact that tribal women had to fight for a right to sell freely broom grass and tie up brooms in this era of “liberalization” expose the inconsistencies in the Government Policies. Despite several Workshops, discussion and debate and pressure from various quarters and despite the legislation for ownership rights to Gram Sabhas in Scheduled area; the Government of Orissa has not brought about any changes in its policies to open up NTFP trade. 2.8 OVERALL IMPACT OF THE CURRENT NTFP POLICIES The overall impact of the current policies and laws are: i) Depression of prices received by the primary collectors for NTFPs, especially due to monopoly leases and high royalty fixed by the Forest Department, with a resultant deprivation of their livelihood. ii) Restriction on Processing/ Value Addition on NTFPs by primary collectors thus restricting avenues for increase in income and employment at the village level. iii) Low utilization of potential of NTFPs due to low returns to the primary collectors as they find it uneconomic to collect NTFPs if the prices offered to them are too low. Apart from the implications on the livelihood of the primary collectors, it also leads to loss of income to State. iv) Continued exploitation of the tribals and other forest dependent communities by the traders/moneylenders. As discussed earlier the monopoly system has not been able to eliminate the exploitative traders, who now operate either as unofficial sub-agents of the monopoly procurers or collect forest products without a license. v) Loss of revenue to the State Government: Organizations like TDCC, in spite of having monopoly procurements rights over many products, have neither been able to serve their objective of welfare of tribal people and nor have they been able to provide revenue to the State Exchequer. Despite efforts to check illegal trade and smuggling of forest products by control in trade, it still continues with consequent loss to the state exchequer. vi) Low stake of forest dependent communities in sustenance of forests : The chords of symbiotic relationship of forest dwellers with forests has been severed through changes which have led to State appropriation of local resources disregarding local natural rights. Due to the

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treatment of the primary collectors only as wage labor rather than producers, and due to the low returns to them from the collection of forest product, their stake in protection of forests have been reduced. It is ironic that while crores of rupees are spent for tribal development and rural development programmes; for a few crores of royalty to the State exchequer the right to livelihood of a large forest dependent population is gravely compromised. The enormous possibilities of augmentation of income of the poorest remain untapped due to faulty policies regulating NTFP trade and restricting access of poor to forest products and their markets. Strengthening NTFP based livelihoods of forest neighboring population would also strengthen local stake in forest conservation and would help in sustainable forest resource management.

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III NTFPS: DISTRICT OVERVIEW FOR BALANGIR DISTRICT & DEVELOPMENTS IN NUAPARA DISTRICT

3.1 FORESTS IN BOLANGIR Though Bolangir is one of the most important districts of the state in terms of production of NTFPs, the district does not have a very large forest cover. As per the Forest Departments published documents the district has a forest cover of 1437 sq. km, amounting for about 16.1% of the total area of the district. The state average stands at 36.7 %, approximately 2.3 times the district averages. As per the satellite imagery information provided by the FSI the Forest Cover in the District is 12%. Here again the state average is 2.5 times that of the district. Bolangir also has a greater proportion of open forests in its total forests than the proportion for the state as a whole. While the state has approximately 60% of its forest under dense forests and 40% under open forests, Bolangir has Dense and Open forest in a 50:50 ratio. Of the various blocks in the district Tureikela, Khaprakhol, Muribahal and Saintala have the best forest cover in terms of Reserve Forest followed by Titilagarh, Bolangir and Gudvela. The rest of the blocks have not much of Reserved Forest but have a good proportion of other forests. Bolangir has also seen a phase of rapid deforestation of forests mainly due to large-scale timber smuggling, esp. from the teak forests in the district. With a forest area that is about 2.5% of the state total Bolangir has more than 7% of the state’s saw mills (A Decade of Forestry, 1992). Of the sawmills within 10 km of a reserve forest, often used as an indicator of the exploitation rate of the forest, the district has more than 10% of the state total. 3.2 NON-TIMBER FOREST PRODUCTS IN BOLANGIR Bolangir district is one of the most important districts in terms of NTFPs. The district has the highest (quantity) and best (quality) of Kendu Leave production in the State. Probably it also is the largest producer of Mahua Flowers in the state. Kendu leaves and Mahua Flowers are the most important NTFPs of the state in terms of value of output. The district is the largest producer of Neem Seeds, 2nd largest producer of Char seeds and Babul seeds, 3rd largest producer of Bantulsi seeds and 5th largest producer of Chakunda seeds; as per the average figures for NTFP production for 93-94 and 94-95 (the last years for which comparative data was available). To indicate the relative monetary importance of various NTFPs in the district, the quantity and value of productions have been compared as given in the following tables. In the first table Price as fixed by the State Welfare Board and in the absence of the same as fixed by the District Price Fixation Committee have been used to calculate value. In the second table Village level prices as collected at Khuripani village in Khaprakhol Block have been used. Mahua seeds do not find a place in the list because of very low reported official collections figures. However, there is substantial production and collection of Mahua seeds and it is used for extraction of oil of local consumption. There are also channels wherein local traders buy Mahua seeds. At an estimated minimum production of Mahua Seeds of more than 40,000 quintals and a price of Rs 550 per quintal the total production would be worth more than 2.2 crore rupees. Thus Mahua seeds are the third most important NTFP of the district after Kendu Leaves and Mahua Flowers. From Table 1 it is obvious that in terms of total income generated for the primary collectors and the Government Kendu leaf holds the most important position in the district, followed by Mahua Flowers. But in terms of village level prices and that indicate the income flowing to the primary collectors Mahua flowers take the top spot followed by Kendu Leaves.

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Table 3: Listing in descending order of value of production based on Govt. prices NTFP Item Year Quantity(qtl) Price Value (Rs. Lakhs) Kendu Leaves 94-95 82770 620 513.17 Mahua Flowers 94-95 192610 200 385.22 Bantulsi 93-94 2252.45 550 12.39 Neem Seeds 93-94 1601.98 550 8.81 Babul Seeds 93-94 1042.26 450 4.69 Genduli Gum 94-95 90 5000 4.50 Char Seed 94-95 143.62 3000 4.31 Sal Seed 94-95 2429.6 175 4.25 Chakunda Seeds 93-94 480.54 550 2.64 Harida 94-95 500.75 250 1.25 Hill Broom 94-95 100 950 0.95 Thorn Broom 94-95 452.9 200 0.91 Siali Leaves 94-95 145 380 0.55 Bahada 94-95 170 300 0.51 Aonla 94-95 10 400 0.04 Table 3.1: Listing of items in descending order of value of output* Year Quantity(qtl) Price(per quintal) Value Mahua Flowers 94-95 192610 400 770.44 Kendu Leaves 94-95 82770 620 513.17 Char Seed 94-95 143.62 3000 4.31 Bantulsi 93-94 2252.45 112.5 2.53 Genduli Gum 94-95 90 2500 2.25 Sal Seed 94-95 2429.6 75 1.82 Chakunda Seeds 93-94 480.54 100 0.48 Harida 94-95 500.75 1.5 0.01 *Based on Village level prices as collected at Khuripani village in Khaprakhol Block

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3.3 RECENT CHANGES IN NTFP DISPOSAL IN KHARIAR FOREST DIVISION (NUAPADA DISTRICT) In an encouraging development in Khariar Forest Division, the DFO has cancelled the lease of NTFP items to Utkal Forest Products (annex I), in the interest of the primary gatherers and the Government Revenue. The DFO claimed that UFP was exploiting the primary gatherers as well as cheating the Government by under reporting collection figures. The total royalty given by UFP for the entire State is to the tune of 37 lakhs while proper collection from Khariar Division alone can give around 30 lakhs royalty to the State. According to the DFO (also reported in the local newspaper The Samaj on 27.7.98), in good crop year production figures of some of the main NTFP items as against the reported collection figures by UFP are as follows: NTFP Estimated Production Reported Collection by UFL Char Seed 15,000 quintals 3500 quintals Babool seeds 6000 qtl 800 qtl Neem seed 3000 qtl 900 qtl Tol seed 15000 qtl 250 qtl The DFO cancelled the lease of UFP and adopted a system of Royalty Permit similar to that for Mahua Flowers for issuing permits to traders. The actual reported collection figures have gone up manifold and so has the royalty realization to the Government. The rates received by the primary collectors have also been much higher. The actual figures are not yet available. This case demonstrates practically that instead of monopoly lease system, Royalty Permits system and introduction of competitors has increased collection of NTFPs. The details of the impact of introducing competition need to be looked into in greater detail.

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IV. VILLAGE STUDIES NTFP Diversity, Uses and Dependence 4.1 PROFILE OF STUDY VILLAGES IN BALANGIR DISTRICT 4.1.1 Kharlikani Kharlikani is situated at a distance of seven kilometers from Bolangir on the Bolangir -Titilagarh highway. There are one hundred and thirty-five households in the village. The entire village is divided into four Padas (hamlets). Almost eighty percent of the people depend on agriculture directly or indirectly as a major source of income. Other alternate sources of livelihood are income from wage labor, seasonal migration to brick kilns and timber and non-timber forest products. Besides, there are three government service holders and three private vehicle drivers in the village. Caste wise distribution of Households

Pada No. of HH Castes Kulta Pada 42 Kulta, Gouda, Keunt, Dolko, Sahara, Sunde, Lohara Basti 53 Kulta, Gouda, Keunt, Kondh, Sahara, Mahato, Brahmin Mirdha Pada 28 Mirdha, Sahara, Sahara Sahara Pada 12 Sahara, Gouda Total households 135 Forests surround Kharlikani on three sides by Reserve as well as Patra (village forest) forests. The Patra forestlands have been encroached by the villagers who have agriculture land alongside. The area of patra jungle encroached is directly related to the amount of agriculture land one has because patra surrounds the agriculture land which is encroached by land owners (see table on land holding pattern). There are no trees left on the un-encroached part of Patra forest area and are now mainly used as common grazing land. The village it is actively protecting forests and a youth club has recently started protection of three different patches of Patra Forest. The Reserve Forests surrounding the village are Maatkhai R.F. and Kalijharan R.F.. All the forests have open access both for collection of NTFP and fuelwood. Villages in the surrounding twelve Panchayats depend on these forests for their needs. Hence the amount of forest produce and its diversity has reduced drastically. It is now difficult to find out a mature tree suitable for timber in the nearby forests. (See box for forest produce, also refer table on NTFP ). Main forest products collected by the villagers Fuelwood Bahada Timber Kurdu Wood for fencing

Char Kardi Kendu leaf Mushroom Sal leaves

Mahua fruit Betuni Bhelwaan Khajuri Aonla

Harida Siali patta Mahua flower Saag Kusum

Village – Kharlikani Gram Panchayat Sikachida Post Office Sikachida Police Station Bolangir Block Bolangir

Forests Legal status : RF and Patra Range : Bolangir KL : Bolangir Forest Divn. : Bolangir

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Agriculture Agriculture is mainly rainfed though some little patches of land have an access to irrigation from a limited number of wells and a small water harvesting structure within the village area. Productivity is low and uncertain. A dry spell of monsoon or a heavy downpour regularly affects crop production over a short period of time. Only five families in the village have enough land to grow crops to meet their yearly food requirements and all these households come within the highest category in wealth ranking. Crops grown in relation to type of lands

Type of land Crops grown Bahal Paddy, Sugarcane Berna Paddy, Vegetables like Brinjals, Chili etc. Mal Paddy, Sugarcane, Vegetables Aant Highland paddy and pulses. Market Since Bolangir is seven km from the village the people of Kharlikani depend on the Bolangir market for both buying and selling of products. Though there are weekly hats in the surrounding villages (at a distance of 10 and more km) none of the households depend on them. For sale of forest products they do not have to move out of the village as the Kutchia (middlemen) collects it from the village. Some find it convenient to sell it to the Kutchia and the others are forced to sell as they had already taken loans against the forest products collected. However some households who occasionally take forest products like mushroom, kardi, saag, brush stick etc for sale at Bolangir market. The households who are involved in fuelwood selling completely depend on Bolangir market. Nearness to an immediate urban centre provides a ready market for the people of Kharlikani. 4.1.2 Kandrabhatta Kandrabhatta is a small village on the foothills of Gandhamardan range of mountains. The village consists of thirty-nine households which is inhabited mostly by the Kondh tribals and few Goud families. It is located at a distance of eighty kilometers from the district headquarters, i.e. Bolangir. The nearest urban centre Patnagarh is situated at a distance of forty kilometers. The main income sources of the villagers are agriculture, forest and wage labor. Forest Kandrabhatta is surrounded by dense forests on two sides . The forest still has an abundant yield of some major NTFPs. The villagers collect about thirty-five different types of NTFPs (see table on NTFP). However, not all NTFP item collected is processed or marketed. Very few of them are marketed and rest of them is used in the household. The poor and the landless do not own Mahua trees but collect Mahua flowers and seeds from the forest. Forests provide a substantial portion of their

Land holding pattern Landholding No. of HHs Large 5 Medium 7 Small 8 Marginal 25 Land less 90

Village Kandrabhatta GP Maharapadar Block Khaprakhol District Bolangir

Forest Rang (T) Latur KL Range Khaprakhol KL Division Bolangir Forest Division Bolangir

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income (see table on income distribution). The consumption of various forest products as food is very high within the village and still higher among the poor. It was noted that some people subsist only on forest products for days together during the lean period. Agriculture The study reveals that only three households produce sufficient paddy to meet their food requirements throughout the year. The main crops such as paddy grown in the Bahal and Mal land and vegetables in Mal land. The status of agricultural production is fairly good, as there is enough water availability for a longer period, which may be attributed to the dense cover of vegetation on the mountain slopes. Interaction with weekly markets

The village market

Day Period of dependence

Distance from village

Purpose of visit

Kapsipalli Monday Seasonal 16 km Sell of Narangi and Saru Jogimunda Tuesday Seasonal 12 km Nothing specific Tetelpalli Wednesday Seasonal 8 km Sell of seasonal fruits Maharapadar Thursday 12 months 5 km Buying and selling of various

commodities Rengali Friday 12 months 12 km Mainly for selling of forest

fruits, vegetables. Khaparakhol Saturday Seasonal 7 km Occasional buying and selling Putula Mohul Sunday Seasonal - Forest fruits - Kendu, Char,

Badhal, Maya 4.1.3 Gadiajore Gadiajore is situated at a distance of 70 kms Northwest of Bolangir in Dangbahal Panchayat, Patnagarh block. There are 45 households within the village with a total population of 185. The main castes in the village are ST (22 HHs), SC (7 HHs), General (22 HHs) and 1 household of a Muslim family. Among the ST the main sub groups are Boriha, Bhuin, Dhudka and Polia, among the SCs the main castes are Seth, Tadi and Rai. The general caste families consist of Thakur, Naik, Sahu, Meher and Bagh. The village economy is based on agriculture, forest produce collection, wage labor and seasonal migration. Agriculture: The main crops grown are high yielding variety of paddy in low land (Bahal) and high land paddy & vegetables in high lands (Berna). The yield of paddy according to the landholding supports only 3 HHs for the entire year. About 15 HHs get paddy for 4-5 months. The rest of the farmers including marginal and landless have very small amount of paddy production. The entire village depends heavily on forests for their livelihood. There exists a well-managed forest protection committee in Gadiajore, which besides functioning as a forest protection committee is also the initiator of other development works within the village. Market Saturday Loharma 6 kms

Land holding pattern Landholding No. of HHs. Large 0 Medium 3 Small 15 Marginal 9 Land less 14

Forest: Forest section- Sargada Range-Patnagarh Forest Division-Boluza Kendu Leaf section -Choliyadar Kendu Leaf Range - Ghasen KL division- Patnagarh Total Reserve Forest area 289.35 hectares

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Tuesday Domkipalli 4 kms (seasonal) 4.2 NTFPS AND RURAL LIVELIHOODS IN BALANGIR STUDY VILLAGES: 4.2.1 Barter System Barter system is still prevalent in the area. The commodities that are bartered by people vary from season to season. Paddy is the most common commodity bartered for a whole range of other consumer goods. From the time of harvest about 4-6 months paddy is used in barter. The local people also barter Mahua flower during Mahua season. Due to continuous drought and subsequent shortage of paddy the buying power of the people has drastically come down. People generally do not prefer to spend money to buy various things that they would have purchased in lieu of paddy. Problems related to Mahua storage has also curtailed the possibilities of Mahua being bartered in large quantities as in Kandrabhatta. Mahua is also frequently bartered with salt, potato and onion from the Kutchia. The rates of exchange are decided by the Kutchia and are usually based on the prevailing market rate of the respective items. 4.2.2 Wage Labor Daily wage labor is a major source of income. Besides agricultural labor type of work varies from earthwork, construction work, land reclamation and other odd jobs. Only men go to Bolangir or other nearby places outside village to work as daily wage laborers. Women usually abstain from going outside the village due to various reasons like problems in travelling, low wages, social customs etc. Earnings for men vary from Rs. 25/- to Rs.40/- in the towns depending upon the type of work. Women get a preference in some agricultural activities such as transplanting, weeding etc. because they are considered most suitable for those types of work. Women earn a daily wage of Rs 15-20 in agricultural work and Rs 20-25 in other types of work. 4.2.3 Migration Few HHs in Kharlikani go out on seasonal migration. The migrating families belong mostly to SC and ST category and few of them are lands less. During their stay in the village these people solely depend on wage labor and selling fuelwood for livelihood purposes. The period of seasonal migration varies from two to six months. There are mainly two types of work for which people migrate. Firstly as Kendu leaf binding workers to places outside the district from July to December. Roughly twenty-five households move to different places with all family members for the entire duration. About hundred people (most with the family) go to places like Hyderabad, Allahabad, Talcher, and other places to work in the brick kilns. The contractor ( who is the middleman) gives an advance to the interested parties (who are willing to migrate) during the period of Nuakhia (an important local festival). The second payment is made when people leave their villages for work. The contractor pays to and fro travel charges and makes the last payment on return to the village. However before the last payment is released he deducts all expenditures towards food and others from that money. Those who go for working in the brick kiln gets Rs 10/- per 100 bricks made. Rough calculation shows that a fresher can make 400-500 bricks a day and others with practice can make more than 600 bricks a day. Thus, people earn about Rs 40-60/- per day. Though

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migration is not considered to be profitable people migrate because they look upon it as an alternate to the situation of ‘no work’ in the village. However going away for employment does not in anyway decrease the overall importance of the local livelihood support systems that exist for these people in the vicinity of the village. The time for migration is adjusted between the NTFP and the agricultural season. March to July is the peak season for NTFP that keeps these people engaged and helps them to earn their livelihood. June-July also is the time for agricultural activities and people find local labor work. Again in December harvesting provides opportunities for labor followed once again by the NTFP season. Thus, the period from July-August to November-December is the hard period for these landless poor people as a result of which they migrate outside. Periods of drought increase the rate of migration. 4.2.4 Fuelwood Selling Collection and selling of fuel-wood is one of the major income sources for majority of the households in Kharlikani (specifically the landless and poor). The landless and poor categories of people mostly depend on fuelwood headloading. The entire forest area surrounding Kharlikani is free for all for collection of fuelwood. Though the activity is carried on throughout the year, July to November is the peak period. An estimate by the villagers reveals that except for ten to twelve House holds all other households engage themselves in fuelwood selling. Both men and women collect and sell fuelwood . While the women carry it as head load, men use either bicycles or carry it as Bhar4 on their shoulders. The nearest market is at Bolangir. For collection of fuelwood people go to the forest in the morning and collect the required amount and return in the afternoon . The collected wood is taken to the market the next day. A headload carried by a woman weighing approximately 35 - 40 kilos sells at Rs. 12/- and may also fetch up to Rs. 20/- during the rainy season. A Bhar of fuelwood collected by a man sells at a Rs. 25/- to Rs. 30/-. The difference in price is due to the nature of wood collected. While women collect fuelwood in the nature of dried twigs and branches, men mostly collect split wood from bigger branches that are more suitable for cooking. 4.2.5 Non Timber Forest Products In the recent years there has been a decreasing trend in the availability of various NTFPs in the forest areas which has caused an increase in difference between the poor and the land owning class. According to the local villagers the forest has shown a steady decreasing rate as a source for NTFPs over the last 10 to 20 years. NTFP items like Kendu, Mahua flowers and fruits, tamarind, mango etc., though considered to be forest products, are no more abundantly available in the forest because the number of trees have been reduced drastically. Most specifically, Mahua trees are no more available in forest in many villages. Collection of the above items is now basically done from the trees in the agricultural fields and encroached patra forests. As a result, collection of these items is usually restricted to only those who have 4 A Bhar or Bhari is two bundles of fuelwood tied to a stick and carried on the shoulders weighing approximately forty kilos.

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land or patra forest (See table on Mahua Collection). This fact is evident from table (Mahua collection) which shows that the rich category who are land owning people in the village collect more Mahua flower and fruit as compared to other categories. However in case of other products which are collected from the forests only it is the poor categories that collect more. For the last ten years Kendu has also ceased to exist as a poor man’s fruit in many villages as there are no mature fruit bearing trees in the forest. The declining rate of the major NTFPs from forest especially Mahua is a cause of serious concern. 4.3 PROFILE OF STUDY VILLAGES IN NUAPADA DISTRICT 4.3.1 Maharajore General profile: There are a total number of 73 households in the hamlet. 29 households belong to ST caste (Gond tribe) out of which 4 households immigrated from Dandibasa to this place ten years back, 30 HHs are from potter caste, 14 HHs from Gauda caste (milkman) of which 4 HHs have shifted to a neighboring village. Agricultural land

Land us The total cultivable area of the village is 33.9 hectares, of which total cultivated area is 29.4 hectares. Paddy is the main crop, besides paddy, ragi, kulthi; some farmers also cultivate black gram. Some framers owning dugwells also take up vegetable cultivation. Schedule tribe people were found to be comparatively better off in possession of land holdings than potter and milkman castes. Landholdings includes both Patta and encroached lands. Patta lands at large are under the ownership of tribal people whereas more encroached lands are under the occupancy of milkman. The landholding of tribals ranges from less than one acre to ten acres whereas the maximum landholding of other two social groups was three acres. Agriculture Paddy is the main crop, besides paddy, ragi, kulthi, black gram are some of the other crops cultivated by the farmers of the village. Some private dugwell owners also undertake vegetable cultivation. A total of about 1 hectare and 0.4 hectares of land is brought under vegetable cultivation during Kharif and Rabi season respectively. Forest The village is adjacent to Gurudungar Proposed Reserve Forest5 (PRF). The forest is dominated by miscellaneous species. Few trees of Mahua, Char etc. are scattered within the forest. Dependency of villagers on the forest is chiefly for firewood for self-consumption and Kendu leaves for sale. Timber extraction for construction purposes is carried out from neighboring forest located near Mahulpadar village. Villagers also collect edible leaves, fruits, forest vegetables, and climbers for consumption purposes. 5 Proposed Reserved Forests: Demarcated Protected Forests proposed to be declared as Reserved Forest.

Land use pattern of the village (In hectares) Total cultivated area : 29.4 Upland : 14.5 Medium land : 10.5 Lowland : 4.4

Maharajore hamlet Block Boden Gram Panchayat Boden District Nuapada Revenue Village Temri

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Water use Maharajore has 18 private dugwells, one water harvesting structure and 2 ponds. One of the ponds is privately owned. Private wells are used for the purpose of washing utensils but more significantly for irrigating vegetable fields. There are two tubewells in the village exclusively for drinking purpose while the government well is used for bathing. Other water resources include nalas (5 in number) flowing across the village. Livelihood The main livelihood sources for villagers are agriculture, wage labor, sale of forest products, seasonal migration and pottery.

NTFP Profile The villagers collect Mahul (Mahua flowers), Tol (Mahua seeds), Char and Kendu-leaves for self-consumption and selling purposes. Of these collection of Mahul and Kendu leaves is of major economic importance. Other NTFPs are collected less frequently and in minor quantities, for specific purposes such as for medicines, socio-cultural events and other purposes but are not sold or exchanged as traders do not buy these produces. Since other products are not traded neither by the local traders nor in the market, it stands as a major constraint for other available products. All households irrespective of castes are involved in NTFP collection. Of all the NTFPs Kendu leaves provide the highest income. For all groups except the big farmers the income from Kendu leaf was the higher than that from Mahua flowers, the second most important produce. Kendu leaves are collected mostly from the forests and sold at the Phadi in the nearby village. The leaves are sold in bundles of 40 leaves at 26 rupees per 100 bundles. Kendu leaf collection provides employment during the period of the greatest need. However the payments are often delayed by more than two months and sometimes by more than one year. A major problem relating to Kendu leaves collection in this village was the non-issue of collector’s cards. Collec tors without this card have no valid proof of their collection and are often cheated by the Phadi workers. Mahua trees are found more on Private lands. Thus, collection of Mahul is done more by the large landowners owning Mahua trees. People without Mahua trees of their own collect from forest and other public lands. But there are very few trees in the forest and most of them are not vigorous producers. A few households get into sharing arrangements with people owning large number of Mahua trees owners whereby they collect Mahul from their trees. The share of the tree owner ranges from half to two-thirds of the total collection. Domestic consumption of Mahua is not much and most of the Mahua is exchanged mainly for salt (1 kg of Mahua for 2 kgs of salt). Excess of Mahua flowers, after being exchanged with annual requirement of salt, is sold. Local rate of salt is Rs. 2.00/kg and average price obtained for Mahua sold for cash is Rs 4.40/kg. There is also some exchange for other commodities such as potato and in certain instances dress materials. The price of Mahua flowers remains high at the beginning of collection period then decreases during the peak collection period but starts rising towards the end of the collection period. Selling price for Mahua varies from Rs 3.00-Rs.5.00/kg during collection season. Initially, selling price of Mahua remains at Rs. 4.50 to Rs.5.00 and towards end of second week of collection period, it falls to Rs. 3.00/kg and towards last week of collection, it rises to Rs. 6.00/kg. Mahua is also sold by drying and storing it for fetching higher price i.e. Rs 6.00/kg during off-season. However it is to be noted here that the price of Mahua flowers has been high this year on account of the low production. Tola oil is extracted from the Mahua kernels and consumed for edible purposes. Production is not large enough for selling and generally all Tola oil is consumed. Char is generally sold unprocessed. Traders follow a simple practice to grade the quality of char seeds. 10 to 20

28

seeds sampled from the quantity brought for sale are put in a pan of water and the seeds that sink are considered to be good seeds. The price is fixed on the basis of percentage of good seeds. If all seeds sink, the price is fixed at Rs 25.00/kg; if 75% sink the price is Rs18.00/kg and so on. If all the seeds float then a nominal price of Rs 2.00 to 3.00/kg is paid.

Forest profile Forest section Khariar Range Boden Nearest forest patch Gurudangar Proposed Reserve Forest(PRF) Division Khariar Kendu leaves Range Boden Kendu leaves Section Khariar Kendu leaves Division Khariar 4.3.2 Bhaisadadar Bhainsadadar village comes under Motta Nuapada Panchayat of Nuapada block, Nuapada district. There are three hamlets in the village namely Basti, Dadar and Pandey sahi. The village has a heterogeneous population of different castes and tribes; Gond (ST), Saura (ST); milkmen (SC); Harijan (SC) and potters (OBC). There are 89 households in the village and the total population is approximately 400 (refer annexure for caste wise HHs distribution). Of the total households 11 are landless and 42 are marginal farmers (holding less than 2.5 acres of land). At a rough estimate at least half of the villagers are below the poverty line. Agriculture Paddy is the chief agricultural produce of the village. The yield of paddy is very low and only families in the medium or large farmer category produced enough paddy to sustain themselves for the entire year. The small farmers produced about two-third of their annual requirement and marginal farmers produced about one-third of their annual requirement. None of the landless households did sharecropping and thus they did not produce any paddy. Forest Nearest Reserve Forest (RF) patch is Kechuapari RF which falls under Khariar Forest Division. The village also has a patch of Patra jungle (protected forest). The villagers are dependent on the forest for fuel wood and timber for domestic needs. Quite a few forest based food items are also collected for subsistence. Edible fruits such as Kendu fruits and Jamun are generally consumed but never collected in a mass scale. Kendu leaves and Mahua flowers are collected primarily for sale although a small part of the collections may be kept for domestic use. On the other hand Mahua seeds and Char seeds are collected primarily for consumption and a small part may be sold. Collection of Char seeds is not a primary activity but is carried out along with activities like fuelwood gathering. Other NTFPs such as Aonla and Harida are collected infrequently for medicinal purposes. Timber yielding species mainly include Teak; Bija and dominant fuelwood species are Dhaura, Sisha, Bheruan, Salhen, Karla etc. Tree based produce from Private lands Apart from forest produce various tree-based produce are also derived from trees on private land. Mahua seeds and Mahua flowers are primarily obtained from Mahua trees on agricultural land and other private land. People owning large number of Mahua trees often let out trees for collection by other people. The owner receives from one-third to half of the collection as his share.

29

Weekly Market

Place Market Day State Distance from the village (kms) Dharambandha Monday Orissa 7 Kothi Tuesday Madhya Pradesh 6 Aamanara Wednesday Orissa 9 Rasala Thursday Madhya Pradesh 9 Khariar road Tuesday Orissa 30 Nuapada Sunday Orissa 35 Major Haats that the villagers frequently approach for buying their domestic commodities are Dharambandha (in Orissa) and Kothi (in Madhya Pradesh). Other markets are approached occasionally. Collection and selling of NTFPs in Nuapada district NTFPs Dominant

source of collection

Purpose of collection Extent of collection

Sold to Market channel

Mahua Flower

Agricultural plots

Mainly for exchange and selling

Good amt. of collection

Local traders

Ranchi

Tola Agricultural plots

For consumption of oil Low Not sold

Char Agricultural plots, forests

For consumption and selling

Low Local traders

Kendu leaves

Forests Selling Moderate to high

Phadi

30

4.4 SOCIO - ECONOMIC PROFILE OF COLLECTORS The prime importance of Non Timber Forest Produce to development stems out of their importance in the livelihoods of the poorest sections of the rural society. It is an accepted fact that NTFP income has a positive income redistribution effect. NTFPs provide an independent income source to the poorer households. Even within the poorer people NTFP income is earned more by women. But there it is hard to say if there is any impact on the economic equity between men and women as the women do not have much control over how this income is spent. The role of NTFPs in enhancing economic equity is also strengthened by the fact that for the most disadvantaged sections like widows and old people uncared for by their children, NTFP collection is very often the only significant income source. NTFPs add a relatively greater amount to the total non-NTFP income of poorer people as compared to the better off. However in absolute terms households with larger land holding get larger incomes from NTFP. For all the study villages the income from Minor Forest Produce was higher in case of the lower income groups. Apart from in village Maharajore the income from paddy in comparison to income from Minor Forest Produce is of not much significance for the landless groups as in other three villages who do not cultivate any paddy. Starting from the marginal farmers onwards the relative contribution of NTFP income vis a vis the income from paddy comes down with each higher land class with just one exception that in Kandrabhatta, Bhainsadadar and Kharlikani the share increases slightly as one moves from small farmers to medium farmers. In the first two villages the increase is due to the disproportionately larger quantity of Mahua received by the medium farmers through own collection and share received from Mahua collected by other people from their land. In Kharlikani the reason is that medium landholders receive almost double the income from Kendu Leaf collection as there are more members per family to collect in medium farmers. In Kharlikani and Bhainsadadar households with higher land holding receive greater income from NTFP in absolute terms. The greater income is due to the larger income from Mahua flowers on own land. On the other hand in Kandrabhatta the average income from NTFPs moves down from about 2287 rupees in case of the Landless to 1927 rupees for marginal farmers and then down to 1016 rupees for the small farmers. However with an average income of 3192 rupees, the medium farmers, there are no large farmers in the village, have the highest income. Kandrabhatta being a more forest rich area as compared to the other three villages explains the fact that the landless and marginal farmers have higher incomes from NTFPs than the next higher land holding class. Thus the landless and marginal farmers do not face as much supply constraint as faced by the landless and marginal farmers in other villages. This is also exemplified by the fact that in Kandrabhatta income from Mahua flowers, the income from which is directly linked to the number of Mahua trees possessed by a person and hence to landholding, is higher than even small farmers in Bhainsadadar and medium farmers in Kharlikani. In Maharajore there is a decrease in percentage share at every step as one moves up the land holding categories. The average income from all Minor Forest Produce is also higher than that of the landless and the marginal farmers in Bhainsadadar and Kharlikani. Thus the equity enhancing impact of NTFPs is greater in areas with larger public forests. In terms of income earned from NTFPs women score higher than men did. Women do most of the NTFP collection. For example in case of Kendu leaf collection women (including girl children) composed 100% of the collectors in Kharlikani, 94% in Kandrabhatta and 78 % in Maharajore. On the average Women(including girl children) composed 88 % of the Kendu leaf collectors.

31

4.5 FACTORS INFLUENCING NTFP COLLECTION : EXISTING CONSTRAINTS Collection of certain NTFP items in the village is fully dependent on the demand in market (market driven NTFP collection).The list of items which comes within this category is high. This includes more or less all major NTFP items except Mahua flower and fruit with varying intensities. The produces not affected by market demand are associated with traditional values or are beneficial otherwise like medicinal values etc. 4.5.1 UNCERTAIN AND FLUCTUATING MARKET In the local system, the Kutchia or the middleman comes to the village prior to the start of the season of any particular NTFP and ask the people to collect it. He also declares the price for the NTFP items and an understanding is reached that he would buy the NTFP at that price. For example, in village Kharlikani collection of Char was started three years back basically because of this reason. Three years back the middlemen had come for collection of Char and then after people started its collection on a commercial basis. Similarly, five years back Patta (fibre of plants like Siali) collection was done by the villagers on a larger scale. Presently, no single HH collects Patta for selling, as they do not find any market demand for it. In Kandrabhatta, a major NTFP like Sal seed is no more being collected for the last ten years as the contractor buying the same has stopped buying. Sal seed cannot be sold in the open market as its marketing rights have been leased out to a private party. Many such NTFP items do not find ready market, hence are not being collected. However, a small amount is collected for HH consumption. 4.5.2 IRREGULAR PAYMENTS Non-collection of some NTFP items is also caused by the irregularity on payments. The example of Kendu leaves can be studied in this context. Kendu Leaf collection in both the study villages has been on the decrease during the last three years. Collection of Kendu Leaf is found to be a steady income source that provides an average household income of Rs. 500/- to Rs. 700/- per annum. Collection prices to pluckers are generally given in installments. However, people have experienced that the prices for the last few days of collection are usually not disbursed. As per the present year (1998) figures, on an average each KL collector has a due of five to ten days collection amount. The pending payments also vary depending on the total days of collection. Those who have collected for fifteen days and then stopped have an average pending payment of two to three days each. Those who have been involved for the entire period of collection or more number of days i.e., up to forty-five days have, on an average, a greater amount of pending payment. This year the KL pluckers’ cards have already been taken away from the people with no signs of disbursing the dues (till September). The last dues of KL collection are always given by July each year. These irregularities have serious impacts and people are forced to approach moneylenders while their rightful due does not reach them in time. People get discouraged in the process of collection as a result of which the number of days spent for collection per HH has diminished over the last two years. Some also choose not to collect at all as they find it unprofitable or not useful. Most people now go for collection for the initial twelve to fifteen or twenty days as this lowers the amount of pending payment. The overall impact of this drastically reduces the KL collection, which not only affects the poor collectors but also the state exchequer. Sal seed is another example in the same context. Sal seed in the area has been leased out to Preeti Oils. Three to four years back the situation of irregular collection of Sal seed had reached a stage of non-payment to the collectors. In the last two years no Sal seed collection has taken place.

32

4.5.3 BUREAUCRATIC HINDRANCES Mahua flower has traditionally been an important part of local seasonal diet. A portion of total collection of total Mahua flower is stored for household consumption and the rest are sold out or exchanged for salt, potatoes, or onion. The consumption quantity varies between ten kg to one quintal depending upon the family members. In a typical tribal rural set up Mahua flower is exchanged with rice for about two to four months especially during the rains that is the rice scarcity period. However, in the last two to three years tribals of Kandrabhatta had to stop the practice of storing Mahua for consumption purposes. People feel that there has been a serious threat and an encroachment into their traditional rights to use Mahua. The excise officials along with the owners of local brewing units come to village, conduct search of each household and seize whatever quantity of Mahua is found stored in the village. Seizing of stock and harassment takes place irrespective of the govt. regulations regarding permissible limits for storage of Mahua, which is 2 quintals per household. In the past people also used to store Mahua flower for off-season selling which fetched almost double the amount if sold during the season. Majority of the villagers used to store half the total quantity collected by them. But, presently due to the threat to store people sell off immediately whatever quantity is collected. Reduction in storage time has also brought down the total quantity of consumption per household. A rough estimate shows that a household which was storing more than one quintal of Mahua flower for consumption earlier is now able to consume only (store it for a brief period) 15 to 20 kg per annum. Even if some people store more quantity, they are forced to sell it off at very low prices once they sense the threat of seizure. People still depend upon the barter system of acquiring goods. The forest products are mainly sold to the local middlemen at low rates. There is only one market day in a week and all kinds of essential commodities are traded.

33

Table 4.1: List of NTFPs in the study villages.

NTFP Dist: Bolangir Dist: Nuapada Sl No

Local Name English Name

Kharlikani

Kandrabhatta

Gadiajore

Bhainsadadar

Maharajore

1 Mohul Mahua Flower

A, S, C A, S, C A, S, C A, S, C A, S, C

2 Tola Mahua seeds

A, S, C A, S, C A, S, C A, S, C A, S, C

3 Kendu Patra Tendu Leaf A, S, C A, S, C A, S, C A, S, C A, S, C 4 Chara Chiranjee A, S, C A, S, C A, S, C A, S, C A, S, C 5 Kendu Tendu A, S, C A, S, C A, S, C A, C A, C 6 Chatti Mushroom A, S, C A, S, C A, S, C A, C A, C 7 Patra Sal leaf A, S, C A, C A, S, C A, C A, C 8 Saaga Leafy

Veg. A, C A, C A, C A, C A, C

9 Kardi/ Hendua

Bamboo shoot

A, C A, C A, C NA NA

10 Veluaan Bhalia A, C A, C A, C N. A. N. A. 11 Aonla* Aonla A, C A, C A, C A, C A, C 12 Bahada* Bahra A, C A, C A, C N. A. N. A. 13 Harida* Harra A, C A, C A, C A, C A, C 14 Pata Fibre A, C A, C A, C N. A. N. A. 15 Kathi Brush stick A, C A, C A, C N. A. N. A. 16 Kusum Kusum N. A A, C A, C N. A. N. A. 17 Tentuli Tamarind N. A A, C A, C N. A. N. A. 18 Jamu koli Black

Berries N. A A, C A, C N. A. N. A.

19 Banji Bamboo N. A A, C A, S, C N. A. N. A. 20 Kanda Roots &

Tubers N. A A, C A, C N. A. N. A.

21 Nageshwar N. A A, C A, C N. A. N. A. 22 Mahu Honey N. A A, C A, C N. A. N. A. 23 Karanj Karanj N. A A, C A, C N. A. N. A. 24 Bela Woodapple N. A A, C A, C N. A. N. A. 25 Aamba Mango N. A A, S, C A, C N. A. N. A. 26 Panasa Jack fruit N. A A, C A, C N. A. N. A. 27 Sargi Manji Sal seeds N. A A, C A, C N. A. N. A. 28 Barada N. A A, C A, C N. A. N. A. 29 Limba Neem N. A A, C A, C N. A. N. A. 30 Chatal N. A A, C A, C N. A. N. A. 31 Kenti N. A A, C A, C N. A. N. A. 32 Kernely N. A A, C A, C N. A. N. A. 33 Thelka N. A A, C A, C N. A. N. A. 34 Asadia N. A A, C A, C N. A. N. A. 35 Siyadi N. A A, C A, C N. A. N. A. 36 Gerul N. A NA NA A, C N. A. 37 Chironta N. A. N. A. N. A. A,C N. A. A = Available, S = Sold, C= Consumption * Together the three products are known as Triphala or Myrobalans

34

Table 4.2: Availability, Collection, Processing and Marketing of NTFPs NTFP Items Collection Source Availability Marketing Processing Consumption purpo

sive Non-purposive

Mahua flower Yes -- Forests, Agricultural land

Cutting of Mahua trees from forest has reduced its availability.

Village based marketing through Kutchia (middleman) . Occasionally sold in the nearby market, also exchanged for salt, onion, potatoes etc.

Drying in sun before selling

Amount of HH consumption has drastically come down due to interference of Excise dept. and change in food habits. Consumed as food and fodder.

Mahua Fruit Yes -do Cutting of Mahua trees from forest has reduced its availability. Availability is very uncertain and irregular

Village based marketing through Kutchia (middleman). Occasionally sold in the nearby market, also exchanged for salt, onion, potatoes etc. The Teli caste (indigenous oil millers) sells Tolo (seed) oil in the weekly markets.

local level processing of seed into oil and ghee.

Oil is used HHs for cooking and as body oil.

Char Yes Forests and common lands

Decreasing over the last 3-5 years due to the decrease in trees. Natural factors like excessive mist and hailstorm etc. also effect its availability.

Village based marketing. People also exchange it for salt and other commodities in the local market

Separation of seed and pulp indigenously. Absence of higher/further processing due to lack of know-how.

Consumed raw as berry. Increased marketability is leading to decrease in household consumption.

Kendu Leaves Yes Reduced availability due to improper Guchha katta (trimming) and encroachment on common lands. *The sparse density of the trees over an area also affects collection.

Sold at government phadis or collection centres.

Bind 20 leaves into one Keri.

Not found in the study villages.

35

Table 4.2: Availability, Collection, Processing and Marketing of NTFPs contd … Sal seed

Yes Forest Availability decreased and seed-bearing rate has decreased noticeably.

Being a leased out item it was sold to the agent at fixed prices at Kharlikani though in the other villages there is no market demand

Decortication prior to sale.

No consumption in study villages.

Myrobalans Yes Yes Forest Available in small quantities.

No market locally. Drying and salting. Used as medicine.

Kendu

Yes Forest Cutting of trees for fuel wood has decreased production.

Sold only on surplus collection.

Nil Consumed as fruit.

Kanda (Roots and Tubers)

Yes Forest Owing to the present status of the forest available only in Kandrabhatta and Gadiajore.

Marketing is not done. Nil Consumed as food

Mushroom Yes Forest Uncertain & irregular availability. Availability has decreased due to decreased leaf litter.

Occasional selling in case of surplus collection.

Dehydrating a certain amount for consumption round the year is practiced.

Consumed as a food.

Kardi

Forest Drastic reduction in availability due to, cutting of Bamboo both by contractors and local people.

Sale in small quantities by landless and poor people in case of surplus collection.

Processing involves grating, soaking in water and drying.

Consumption through different preparations of food.

Other Seeds Bahada, Kusum,

Karanj, Nageswar etc.

Yes Forest Collection needs specific.

No market demand. Traditional processing practices.

Consumed as medicine.

37

V GENDER ROLES IN NTFP COLLECTION & MARKETING Women play the principal role in the collection, processing and sale of Non Timber Forest Produce. Among the poorer people NTFP based income is important for the household as a whole. From the perspective of its being an occupation predominantly practiced by women NTFPs acquire even greater significance. Income from agriculture and income from NTFPs are the two most important resource based incomes in the forest neighboring rural areas. However agricultural income is not directly relevant to women, who are customarily, denied land ownership rights. Agricultural development can provide women only with added opportunities for agricultural labor at wage rates that are sometimes highly discriminatory. Development of the NTFP sector not only has a more direct impact in terms of enhancing the income of women but most often puts that income right in to their hands. An understanding of the role of women in the NTFP economy and the importance of NTFP based income for rural women is essential for undertaking a programme to allocate funds for the development of various economic activities in the rural areas. While men excel in work that requires greater physical strength, women excel in work that requires greater skill or requires greater stamina (or greater willingness to slog for very long hours). Social approval is another factor that influences the kind of work women choose to do. The dependence of women on NTFP based income can be seen in the light of the above. 5.1 NTFP COLLECTION Women do not obtain as good employment as men in other work The greater involvement of women in NTFP collection is often, but not always, due to the fact that they are not able to get good alternative employment. For instance in the village Kandrabhatta the women were not allowed to go to Bolangir town to work because of that would involve coming back late and thus involved a risk (of being physically assaulted!). In agricultural operations like weeding and transplanting women were preferred over men. But the work in Bolangir town was mostly construction work and women were not preferred in that kind of work. Thus women had little other option in the agricultural lean season than collecting NTFPs. Thus it seems from one angle that women collect NTFPs more than men as the latter have more profitable employment avenues. But this is not true as very often men upon not getting employment would rather sit idle, e.g. Kharlikani village, than get involved in NTFP collection. NTFPs like Kendu leaf often give returns of more than 40 rupees per day, which is higher than what going to the town for work would pay, but the men do not collect Kendu leaves. Thus the unwillingness on the part of men may be because of a distaste for the long and tedious working hours or may be the existing socio-cultural norms classify KL collection as women’s work and men who collect KL are looked down upon. NTFPs involving long tedious working hours have greater participation from women NTFPs such as Kendu leaves, broom-grass, Siali / Sal leaves need to be collected over very long hours to be profitable. A typical day for a Kendu Leaf plucker starts at around six o’ clock in the morning and ends around six in the evening with a small break for lunch. It is also found that all such NTFPs, like the collection of leaves and grasses, which require the plucker to walk long distances, have greater participation from women.

38

NTFPs that require climbing trees usually have greater participation of Men NTFPs like Char were found to be collected more by men than by women. That women have a lower participation however does not probably imply that they lack climbing skills. Most young girls in tribal and rural areas know how to climb trees almost as well as boys of their age do. The lower participation probably comes from social disapproval of women climbing trees. Wherever there is no such disapproval, e.g. Sal leaf plucking in the coppice Sal forest of South West Bengal, women do climb trees for collecting leaves etc. Nearer home in the Nayagarh district it is usual to find tribal women climbing trees to collect leaves and dry branches for fuelwood. Collection of NTFPs like tamarind, mango usually involve a husband wife team with the man climbing the tree and shaking the branches to make the fruits fall while the woman does the gathering. Women do not collect NTFPs deep in the forest In the one village, Kandrabhatta near the Gandhamardan, that is situated close to very dense forests women did not go deep in to the forest to collect NTFPs while men did. On probing the people said that it was because there was Bear menace in the deeper forests and hence only men went to collect. 5.2 NTFP PROCESSING If collection of NTFPs is predominantly the domain of women, processing of NTFPs is even more so. Women primarily do basic processing like drying. The decorticating of Mahua seeds, the de-shelling, de-seeding and pulping of Tamarind, leaf plate making, broom making etc. are done primarily by women. Women and girl children are the predominant workers in Bidi making in areas where Bidi rolling is a major household activity. Household processing of NTFPs allows women to be engaged in profitable work without having to move out of the home too much. This also enables widows and old women living in all female households to obtain employment and allows pregnant and nursing women to be profitably (from a financial sense) engaged during this period. 5.3 NTFP MARKETING Like other sources of income, income from NTFPs also tends to be controlled more by men than by women. This is not a problem specific to NTFPs but to the existing social setup and the position of women in it vis a vis men. However greater control on the selling of NTFPs increases the control of women, although not above the degree of control enjoyed by men, over the income. The final control on income from NTFPs depends on the control on their marketing. There are certain marketing arrangements where the women can obtain greater control than they would otherwise. At the same time it must be noted that while greater control by men often leads to use of the income for non productive / counterproductive ways, oftener than not, increased control by women leads to better management of income to arrange food and basic necessities for the family. 5.4 CONTROL OVER INCOMES FROM NTFPS Barter versus Sale for Cash It is often found that barter sale leads to greater exploitation in terms of price of the produce. However the control of women on the income is more in case of barter. Barter brings in consumables in to the household rather than money. As there is lesser intra-household inequity in the use of consumables than in the use of cash barter is better from

39

the angle of increased control by women. Women also get greater control in case of small sale/barters during the purchase of consumables from the village grocery shop. On the other hand bulk sale usually brings in cash income and increased control of men. Thus women lose out during bulk sale and gain during small-scale sale/barters during purchase of food articles etc. Women also are disadvantaged when the produce is sold at a distant market or Haats. Usually it will be the man who takes the produce to the Haats for sale and often, but of course not always, uses significant portions of the sale proceeds for buying intoxicants like Liquor, Ganja and tobacco. On the other hand sale to Kutchias at village level implies that women are involved in the process and thus have some control on the sale proceeds. Thus sale at one’s doorstep is more advantageous from the point of control over income by women. Mahua flowers are the most used NTFP for small barter / sale for daily necessities. But the current governmental restrictions on the Storage of Mahua flowers force people to sell almost the whole of their produce, a considerable part for cash, during the Mahua season. This has a negative impact on the control women enjoy over NTFP income. The changing consumption pattern leading to greater consumption of cereals in place of forest produce also leads to a monetisation process that is anti women.

40

Table 5.1 Gender Roles in NTFP Collection, Processing & Marketing of Marketed NTFPs Men Women Male Child Girl Child Char Collection

� � �

�

� �

�

De-pulping

�

� �

�

�

Decorticating

� �

�

Selling Fruits

�

� � �

Selling Seeds

� �

�

Kendu Leaves Collection

�

� � � �

�

� � �

Binding

� �

� � �

�

Selling

�

� � �

Mahua Seeds Collection

�

� � �

�

� �

Drying

� �

�

Decorticating

�

� � �

� �

Oil Extraction(Mill)

� � �

�

�

Selling

�

�

Sal Leaves Collection

� � �

� �

Drying

�

�

Stitching

�

� � �

� �

Selling

� � �

�

Child: Someone less than 14 years in age (approx.)

�

: Degree of Involvement

41

Table 5.2 Gender Roles in Collection and use of Consumption NTFPs. Men Women Male Child Girl Child Leafy Vegetables Collection

� � �

� �

Cooking

�

�

Mushrooms Collection

�

� �

�

� �

Tubers Collection

�

� �

�

�

Berries Collection

�

�

Tamarind Collection

�

�

�

De-shelling

�

� � �

� �

De-seeding

� �

� �

Drying

� �

� �

Pulping & Pickling

� �

�

Aonla, Bahada, Harida Collection

� � �

�

�

�

Drying

� � �

� �

Grinding

�

�

Pickling(Aonla)

�

�

Oil Extraction (Bahada)

� �

� �

�

�

Bamboo Poles Collection

� �

�

Splitting

�

Bamboo Shoots Collection

�

� � �

�

Grating

�

� �

�

Drying

�

�

Honey Collection

�

Oil Seeds Collection

� �

�

Drying

� �

�

Decorticating

�

� � �

�

Oil Extraction

� �

�

42

Table 5.2 Consumption NTFPs. continued... NTFP Men Women Male Child Girl Child Broom Sticks Collection

�

� � � �

�

Drying

�

�

Binding

�

� � �

�

Fibre Collection

� � �

�

�

Rope making

� � �

�

Fuelwood Collection

� � �

� � �

�

� �

Table 5.3 Gender roles in agricultural activities Activities Male Female Male

Child Girl Child

Land Preparation �

�

Manure application

� �

�

Ploughing

�

Carrying Seeds to the Field

�

�

Seed Sowing

�

Weeding

�

� �

�

Harvesting

�

�

Seed Collection

�

�

Transporting Produce from field to Home

� �

�

�

�

Storage �

De-husking

�

�

Sale of Harvested Paddy

�

�

Bringing Firewood for boiling Paddy

�

�

Boiling Paddy to before husking

�

�

Drying of paddy

�

�

Crushing paddy for grains preparation.

�

�

43

VI ECONOMIC DEPENDENCE ON NTFP IN STUDY VILLAGES The dependency of villagers on NTFP income can be estimated in both absolute monetary terms as well as relative terms. Both are difficult to calculate. The first, due to difficulties in calculating the total income of a common villager, with varied economic activities and livelihood sources. The calculation of the dependency in absolute monetary terms is made difficult by domestic consumption of NTFPs, large number of small unrecorded sale as in case of Mahua flowers and also due to a large proportion of barter exchanges. It was easier to calculate sale value of major sale items and potential sale value of the major domestic consumption of Mahua oil and compare the total with the total agricultural income. A comparison thus has been made in four study villages between incomes from NTFP sale with income from paddy. 6.1 Kharlikani NTFP has been a major source of income in Kharlikani contributing substantially to the income of the whole village (average 27%) (Please refer tables 6b1 to 6b6). Dependence on NTFP for subsistence is higher for households with smaller land holdings. The steadily depleting forest cover has adversely affected the availability and collection of major NTFPs like Mohua for the landless and poorest sections (1%). Unlike the past, the present status shows that income from Mahua flowers and seeds is more for the higher landholding class i.e., 92%. This is due to the fact that the fruit bearing Mahua tree can only be found in the private lands. The high land holding class need not venture in the forest for collection of any NTFP either for subsistence or as a source of income (0% for Kendu). The statistics of total average income rate from NTFP per sample household is Rs. 3635.00 for the landholding class and Rs. 926.071 for Landless households due to lesser or non-collection of Mohua by the later and does not indicate the amount of dependence. Presently however Kendu leaf collection is the most important source of NTFP followed by char or Chironjee for most of the households. 6.2 Kandrabhatta (Refer to Tables 6c1 to 6c5) Mohua flower gives the maximum income in Kandrabhatta among all the NTFPs i.e. 28%. The village average of income from NTFPs is 59% compared to the income from the paddy. Availability of Mohua trees in the forest is a beneficial to the poorest (Rs.1179.70) who depend on it for their subsistence. The income from NTFP of the Landless and the highest Land owning class is higher than the other two groups due to more collection of Mohua. Storing of Mohua and selling at more remunerative prices during the lean period could be much more profitable as prices vary from Rs. 2/- to Rs. 7/- from the flowering season to the offseason. This is however prevented due to the nexus between the local traders and Govt. officials. Tola or Mahua seeds is mainly exchanged with Mahua seed oil @ 4 -5 kg of seeds with 1Kg of oil by the villagers. Nearness to the dense forests of the Gandhamardan Range provides an adequate supply of diverse NTFPs to the village of Kandrabatta. NTFPs not only augment the income but also provide support to the overall livelihood system through food , medicine ,and other basic amenities where monetary values are difficult to calculate. Availability of NTFPs in the forests or common lands also restrain the poor people from cutting and selling of timber from forests during the dry season.

44

6.3 Maharajore Kendu Leaf is the most important income earner closely followed by Mahua flowers. The average dependence on NTFPs is low because of the typical caste composition of the village with a large proportion of artisans. The total income from NTFPs is more than 20% of the income from paddy. For Landless households the NTFP dependence was higher with total NTFP income exceeding 34% of income from paddy. This figure was more than 45% for marginal farmers, more than 40 % for small farmers, 21% for medium farmers and about 12% for big farmers. In absolute terms the income from NTFPs is highest for medium farmers (Rs 1348) and second highest for big farmers (Rs 949). The amounts are much smaller for small farmers (Rs 421) marginal farmers (Rs 404) and the landless households (Rs 368). This distribution pattern is on account of increasing family size, and thus more hands to collect NTFPs, and larger holdings of Mahua trees as one goes up the land holding class. 6.4 Bhainsadadar NTFPs contribute a large part of the annual household incomes. Kendu leaf is the dominant source of income contributing an average of Rs 1378 per household. Kendu leaves are sold by number and the collectors get 26 rupees for 100 bundles of 40 leaves each. An average collector may collect about 100 bundles per day. Kendu leaves are mostly collected from the forest areas. Mahua flower is the other major income earner with an average contribution of Rs 805 per household. Mahua flowers are sold by weight or by volume. Mahua flower is mostly exchanged for paddy, at 75 to 150 kgs of paddy for 80-kg bag (approx.) of Mahua flowers. Mahua flowers are also sold for cash at prices ranging from4 to 7 rupees. Here it may be noted that the price of Mahua flowers was higher this year on account of the low production. The usual prices of Mahua flowers range from 2 rupees in the production season to about seven rupees during October-November. On the whole the average estimated income from NTFPs was Rs 2315 amounting to 78% of the average income from paddy. The income from NTFPs was equivalent to more than 125 days of employment as agricultural laborer. In relative terms the dependence on NTFPs was even greater for the poorer households, as there was little or no income from paddy. In this situation NTFPs form the only independent source of income. Generally NTFP income was the second largest income earner with income from labor taking the first place in case of the Landless, and the marginal farmers; and agricultural income taking the first place in case of small and medium farmers. In absolute terms income from NTFPs increased with the landholding. This was primarily on account of the fact that most of the Mahua flowers are produced on agricultural lands and other private lands.

45

Contribution of NTFPs to Household Income vrs Contribution of income from Paddy Village: Bhainsadadar Table 6 a1: All the Households HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 5.5 1.192 1.79 2.98 2975 805.5 66.9 64.6

As % of income from Paddy 27% 2% 2% As % of income from NTFPs 129% 35% 3% 3% Table 6a2: Landless Households HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 4 0 0 0 0 50 0 0

As % of income from Paddy As % of income from NTFPs 0% 4% 0% 0% Table 6a3: Marginal Farmers (Holding Less than 2.5 Acres) HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 5.4 0.6 0.9 1.5 1644 806 76 49

As % of income from Paddy 49% 5% 3% As % of income from NTFPs 65% 32% 3% 2% Table 6a4: Small Farmers (Holding More than 2.5 Acres And Up To 5 Acres) HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 5.7 1.3 2.2 3.5 3520 932 65 87 As % of income from Paddy 26% 2% 2% As % of income from NTFPs 145% 38% 3% 4% Table 6a5: Medium Farmers (Holding More than 5 Acres And Up to 10 Acres) HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 6 3..3 4.1 7.4 6900 2950 378 240 As % of income from Paddy 43% 5% 3% As % of income from NTFPs 139% 59% 8% 5%

46

Contribution of NTFPs to Household Income vrs Contribution of income from Paddy Village: Kharlikani Table 6b1: All Households Land Holding Income From various Sources Ryoti Patra Total Paddy Mahua K L Tola Average of Sample 3.68 1.84 5.52 5914.3 633.7 722.6 63.1 As % of income from Paddy 11% 12% 1% As % of income from NTFPs 376% 40% 46% 4% Table 6b2: Landless Households Land Holding Income From various Sources Ryoti Patra Total Paddy Mahua KL Tola Average of Sample 0 0 0 0 12.86 613.3 7.07 As % of income from Paddy 0 NA NA NA As % of income from NTFPs 0% 1% 66% 1% Table 6b3: marginal Farmers ( Holding Up To 2.5 Acres of Land) Land Holding Income From various Sources Ryoti Patra Total Paddy Mahua KL Tola Average of Sample 0 1.75 1.75 300 283.2 785 16.5 As % of income from Paddy 94% 262% 6% As % of income from NTFPs 28% 26% 72% 2% Table 6b4: Small Farmers ( Holding More than 2.5 Acres And Up To 5 Acres of Land) Land Holding Income From various Sources Ryoti Patra Total Paddy Mahua KL Tola Average of Sample 1.6 2.1 3.7 3090 467.5 693 64.4 As % of income from Paddy 15% 22% 2% As % of income from NTFPs 232% 35% 52% 5% Table 6b5: Medium Farmers ( Holding More than 5 Acres And Up to 10 Acres of Land) Land Holding Income From various Sources Ryoti Patra Total Paddy Mahua KL Tola Average of Sample 4 3 7 4700 602.8 1569 66 As % of income from Paddy 13% 33% 1% As % of income from NTFPs 201% 26% 67% 3%

47

Contribution of NTFPs to Household Income vrs Contribution of income from Paddy Table 6b6: Large Farmers ( Holding More than 10 Acres of Land) Land Holding Income From various Sources Ryoti Patra Total Paddy Mahua KL Tola Average of Sample 25 6 31 40000 3360 0 275 As % of income from Paddy 8% 0% 1% As % of income from NTFPs 1100% 92% 0% 8% Village: Kandrabhatta Table 6c1: All Households Land Holding Income From various Sources Ryoti Patra Total Paddy Mahua KL Tola Char Average of Sample 2.9 0 2.9 3700 1065.8 716.7917 164.9 63.417 As % of income from Paddy 28.8% 19.4% 4.5% 1.7% As % of income from NTFPs 170% 49% 33% 8% 3% Table 6c2: Landless Households Land Holding Income From various Sources Ryoti Patra Total Paddy Mahua KL Tola Char Average of Sample 0 0 0 0 1179.7 752 78.38 27 As % of income from Paddy NA NA NA NA NA As % of income from NTFPs 0% 52% 33% 3% 1%

48

Contribution of NTFPs to Household Income vrs Contribution of income from Paddy Table 6c3: Marginal Farmers (Holding Up To 2.5 Acres of Land) Land holding Income from Various sources Ryoti Patra Total Paddy Mahua KL Tola Char Average of Sample 0 0 1.9 2580 993 629.1 148.3 46.2 As % of income from Paddy 38.5% 24.4% 5.7% 1.8% As % of income from NTFPs 134% 52% 33% 8% 2% Table 6c4: Small Farmers ( Holding More than 2.5 Acres And Up To 5 Acres of Land) Land holding Income from Various sources Ryoti Patra Total Paddy Mahua KL Tola Char Average of Sample 0 0 5 4500 230.77 520 33 132 As % of income from Paddy 5.1% 11.6% 0.7% 2.9% As % of income from NTFPs 443% 23% 51% 3% 13% Table 6c5: Medium Farmers ( Holding More than 5 Acres And Up to 10 Acres of Land) Land holding Income from Various sources Ryoti Patra Total Paddy Mahua KL Tola Char Average of Sample 10 0 10 13500 1437.5 964 445.5 145 As % of income from Paddy 10.6% 7.1% 3.3% 1.1% As % of income from NTFPs 423% 45% 30% 14% 5%

49

Contribution of NTFPs to Household Income versus Contribution of income from Paddy Village: Maharajore Table 6d1: All Households HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 5.38 1.01 1.41 2.43 1850.96 127.03 9.29 19.19

As % of income from Paddy 6.86% 0.50% 1.04% As % of income from NTFPs 450.00% 30.88% 2.26% 4.67% Table 6d2: Average NTFP dependence of landless category HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 3.74 0 0 0 1080 63.43 0 0 As % of income from Paddy 5.87% 0.00% 0.00% As % of income from NTFPs 293.14% 17.22% 0.00% 0.00% Table6d3: Average NTFP dependence of marginal farmers HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 5.07 0.18 1.21 1.39 888.57 137.81 5.14 10.71 As % of income from Paddy 15.51% 0.58% 1.21% As % of income from NTFPs 219.82% 34.09% 1.27% 2.65%

50

Table 6d4: Average NTFP dependence of small farmers HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 6.2 0.8 2.4 3.2 1050 164.3 43.2 4 As % of income from Paddy 15.65% 4.11% 0.38% As % of income from NTFPs 249.70% 39.07% 10.27% 0.95% Table 6d5: Average NTFP dependence of medium farmers HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 9 3 3 6 6000 528 0 40 As % of income from Paddy 8.80% 0.00% 0.67% As % of income from NTFPs 445.10% 39.17% 0.00% 2.97% Table 6d6: Average NTFP dependence of Big Farmers HH Size Land holding Income from various sources Patta Encr Total Paddy Mahua Flower Mahua Oil Char Average of Sample 8.67 7.34 4 11.34 8000 660 0 133.34 As % of income from Paddy 8.25% 0.00% 1.67% As % of income from NTFPs 842.69% 69.52% 0.00% 14.05%

I

Table 7a: Gender Composition of Kendu Leaf Collectors As per Sample Households Female Female Male Male Total Kandrabhatta 17 94% 1 6% 18 Kharlikani 35 100% 0 0% 35 Maharajore 42 78% 12 22% 54 Average 94 88% 13 12% 107 Table 7b: Composition of KL Collectors vrs Cardholding pattern by Age group and Gender , Maharajore Village Pluckers Card Holders Gender & Age Category Number Percentage Number Percentage Male 10 18.5% 5 19.2% Female 22 40.7% 13 50.0% Male Children 2 3.7% 0 0 Girl Children 20 37.0% 8 30.8% Total of Sample 54 26

II

VII PRODUCT PROFILES: MARKET ANALYSIS AND MICRO-ENTERPRISES POSSIBILITIES The low prices of Non Timber forest produce is ascribed to various reasons. The all pervasive problems of low bargaining power, low retention capacity, illiteracy and thus gullibility to various forms of exploitation, poor level of cooperative organization, poor access to market information are as real in case of NTFPs as they are for any other rural produce. But NTFPs suffer from added hindrances that stem out of the state’s unwillingness to part with the exclusive right it has assumed over all the NTFPs whether or not they be produced in the Public forests or on private agricultural land. The severe restrictions against all forms of value addition, the high rate of royalty and the corrupt and inefficient practice of according exclusive Monopoly leasing rights to few Government, private and semi-private agencies; restrict possibilities of raising NTFP based incomes of the rural poor. Wherever people have come together to store, process or transport their produce to earn higher incomes the Government has come down heavily on them to put a stop to such activities. The examples of arrests, impounding of stocks in case of the broom making enterprise started by women’s groups at a few places in Orissa have now become well -known. Other than these cases, there is always the threat of harassment by Excise department if one stores Mahua to sell at a higher price in the off season or by forest department if a group of women tries to transport NTFPs to a farther and more favorable market. Of course these policy constraints has not put a complete check on the so-called illicit activities. What should have been taking place legally and with the full support and encouragement from a Government has to be taken up with great sense of apprehension by village women and men and NGOs. NTFP value addition activities - even liquor brewing by villagers - go on surreptitiously, sale to non lease holders who pay higher prices has outstripped the sale to the legal monopolistic procurers, smuggling in to the neighborhood state of Madhya Pradesh which has a more free market and higher prices for NTFPs. No Government can prevent the poor gatherers from their endeavor to earn enough money to add a little salt to their rice. But in the process of it has led to loss of revenue for the state, loss of earning for the primary gatherers and de-legitimization of honest livelihoods.

Potential for Value Addition and Local level processing of NTFPs In the NTFP trade the primary collectors receive a very low share out of the final market value. There is a great scope for increasing the incomes of the primary collectors through various modes of value addition. Various Value addition Opportunities Method Examples Transport Grading Gums, Kendu Leaves Binding , Stitching Broom sticks, Leaf plates De-seeding Tamarind Decorticating Mahua seeds Pulping Tamarind, Mango Storage Mahua flower Aggregation Fibre extraction Siali Fibre Handicrafts Sabai Ropes, chairs, Mats Oil Extraction Mahua Seed

Market Information Many of the value addition techniques, primary processing as well as cottage level processing can be directly adopted at the household level. For others like aggregation, transport to distant markets, storage of items requiring special facilities (e.g. Raw Tamarind), higher end processing like oil extraction, mechanized decortication, mechanized stitching, building customer loyalty, accessing higher market information etc. formation of Self Help Groups cooperatives is essential. At very high levels of processing (solvent extraction) and trade (export) larger cooperative federations or Government corporations have to come in to the picture. Apart from what can be done by the primary collectors themselves in terms of value addition at household level or through the formation of Self Help Groups and Cooperatives, steps in the direction of enhancing the NTFP based incomes of primary collectors have to be taken by the State Government. The most essential step in this direction would be to relax the laws and rules that prevent NTFP processing and storage. The following is a set of case studies of Village level women Groups’ value addition enterprises.

III

7. PRODUCT PROFILES AND VALUE ADDITION ENTERPRISE

7.1 KENDU LEAF Kendu leave plucking is one of the largest source of livelihood for the poor in the Western and Central parts of the State (Bolangir, Sambalpur, Kalahandi, parts of Koraput, Angul, Sundargarh, Keonjhar and Phulbani Districts). All over Orissa, it generates more than one crore person-days of employment during the lean summer months for the lakhs of poor tribals & Scheduled castes, especially women and children. Assuming that it generates at an average 20 days of employment per HH, at least 5 lakhs poor households in these districts are critically dependent on Kendu leaves collection, earning at an average Rs.580 per hh (1993-94) even at the current depressed prices. In these districts the income of more than 60% of the Households are below the state determined poverty line of Rs.11,000/-per year. During the summer months, when there is no alternate source of employment, Kendu leave collection and sale means the difference between survival and starvation to a large number of poor in the State. It is also one of the few source of liquid cash to the poor in the Kendu leave collection areas. 7.1.1 Regulations over Kendu leaf Trade The government of Orissa introduced partial control over Kendu Leaves trade in 1961 prior to which individual traders controlled the trade and cheated both the primary collectors and the State. From 1973, Kendu leave collection and trading was Nationalized through a notification under the Kendu Leaves (Control of Trade) Act, 1961, and departmental working of Kendu leave was taken up. The practice continues till date. The procurement of Kendu leave from the pluckers/ growers, preliminary processing like drying, binding storage etc. is done by the Kendu Leave Department which functions under the control of the Forest Department, Government of Orissa. Marketing of KL6 is done by the Orissa forest Development Corporation ltd. (OFDC), which gets a commission for this. A large infrastructure with both permanent and seasonal staff is engaged for this. One of the objectives of the Nationalization was the elimination of private traders from the KL trade in order to reduce the exploitation of the KL pluckers. However, unfortunately things haven’t changed much for the primary collectors, with the only difference of the State replacing the private traders. The Government continues to treat revenue generation as its primary objectives in the Kendu Leaf trade, and this significant revenue generating activity of the GoO is based largely at the cost of the primary collectors. From the Government’s perspective, the primary collectors are mere unskilled wage labor “employed” by the State to collect produce from their lands, or collect produce which even when growing on their land, is considered as State Property by virtue of being Nationalized. An analysis of the Government figure related to KL revenues in 1993-94, indicates that the procurement wages given to primary collectors is merely 18% of total sales turnover, whereas the profit to State is almost 50% of sales turnover. This trend holds for almost throughout the period after Nationalization, with the maximum royalty received by State Government in 1989-90 i.e. a sum of Rs.114.98 cores whereas the wages paid to the KL pluckers was only Rs.12.22 crores. The royalty on KL received by the State Government varies from Rs. 12.71 crores in 1984-85 to Rs. 114.98 crores (1989-90). The relationships between the averages of Royalty, remuneration to KL pluckers and the total sales turnover of KL for the last ten years is given below. Average of 10 years (1984-94)| Royalty as a percentage 54% of Sales turnover Remuneration to KL pluckers 16% as percentage of sales turnover

6 KL Kendu Leaves

IV

Remuneration to KL pluckers 30% as percentage of Royalty (Source: A public interest pamphlet circulated by MAS, a human rights organization) The remuneration to KL workers per leave has increased slowly from 0.17 paise/leave in 1984-85 to 0.5 paise/leave in 1992-93. In spite of repeated agitations, in 1996-97, the KL procurement price has been increased by a measly 16% to 35 paise for six leaves (0.58 p/leave). This translates to only 3% increase annually, compared to an average inflation rate in double digits during the same period. Revenue generation from Kendu Leaves is primarily based on the labor and resources7 of deprived sections. For example, in the production process of K.L., for every Rupee paid to the Primary collectors, the State appropriates a profit of Rs.2.50/- (1993-94) to Rs. 9.00/- (1989-90). No attempt was made to have a greater share in the KL trade retained by the collectors who are the poorest sections of Orissa's people instead of maximizing profits to the State. The roots of this problem lies in the Colonial heritage of the Forest laws which abolish the natural and ethical rights of the people on those resources on which they depend for their livelihood. Thus the KL (Control Of Trade), 1961, extinguishes all rights of people on K.L. in the favor of the State, wherever it is found, in forest lands, on non-forest commons or even on private landholdings. It condemns the KL pluckers to be mere unskilled wage laborers, without any rights on a Natural product whose extraction cannot be possible without their efforts. This Act enshrines revenue maximization as the prime objective. A comparison between the prices offered to the KL pluckers in the neighboring states of A.P., Bihar, M.P. and West Bengal shows that Orissa offers the lowest price for per hundred leaves to its KL pluckers; while the KL produced in the State are of superior quality. The Government takes pride in its KL policy as an enlightened one wherein the Government provides 11 million person-days of labor to the poor in the State. It prefers to ignore that massive profits are taken in form of royalty at the cost of the same poor, without investing anything for the Kendu Leave production - even the establishment expenses are deducted before the royalty is calculated. No part of the surplus generated from the Kendu leaves is shared with the Kendu leaves pluckers whose labor make the production possible. Exploitation of KL pluckers is further amplified due to delayed and even non-payment of dues to the pluckers, underpayment, harassment by rejection of leaves etc. Though the KL pluckers have been agitating for higher procurement prices and other basic facilities such as coverage under insurance, umbrellas and slippers for collection in the sun etc., their demands remain unheard and unfulfilled. 7.1.2 Kendu Leaf Grant to Gram Panchayats and Panchayats Samities 50% of the profits from the Kendu Leaves trade are to be shared with the Panchayat Samities and Gram Panchayats as per the Kendu Leaves (Control of Trade) Act. However from 1983, the Government has not been able to calculate the profits from KL trade and hence has not released KL grants, instead on an ad-hoc basis 10 crores annually have been released as ad-hoc KL grants to the Panchayats. It is appalling that for the last over 15 years the Government has not been able to work out any basis of calculating KL profits and has used that as an excuse to forfeit its legal commitment to share KL profits with local people. The KL grants to the various Panchayats in various districts is not necessarily based on the collection from those areas. Even though the Contribution of Bolangir district to KL collection in the State in terms of value of production is 25%, the share of the district in ad-hoc KL grants to Panchayats has been 14% during 1993-96 period. The loss to Bolangir district on account of this faulty profit sharing mechanism is to the tune of 14 crore rupees per annum. This works out to a per capita loss of Rs 115 per annum. At today’s prices this amounts to more than 45 days subsistence per capita. If this money were to be channeled to

7 Forests and Marginal common lands support the landless and the poorest for subsistence and livelihood and these resources by virtue of being treated as State Property are placed out of the hands of the poor to generate revenue for the State at the costs of livelihood of the poor.

V

the bottom one-third of the population this would imply more than 140 days of subsistence per individual. Table 8 a: KL Grant to the Bolangir District 93-94 94-95 95-96 KL Grant District (in millions) 14.2 14.25 13.66 KL Grant State (in millions) 100 100 100 KL Grant(District/State) 14 % 14 % 14 % There is conceptual flaw in the KL grants concept. The KL grant concept even if properly implemented would lead to the transfer of the benefits from the Kendu Leave pluckers to others in non KL growing areas or even in the same areas would be appropriated by the powerful rural elite who tend to dominate the Panchayat level politics. Kendu Leaf trade is a stark example of Government Policies leading to impoverishment of rural poor. A more reasonable profit-sharing mechanism through which the primary producers get a fair share of the value of the Kendu Leaves can lead to a rise of income of these KL pluckers by three times, and can help these pluckers many of whom are below the poverty line. At an average, a poor Household in Bolangir District earns around Rs.1000/- per season from Kendu leave collection. Foregoing the Royalty would increase this income by three times. 7.1.3 Kendu Leaves Production in Bolangir Bolangir district is the largest producer of Kendu Leaves in the state. Roughly 15% of the state’s production comes from the district. In terms of total value of output Bolangir’s contribution is roughly 25%. This is due to the better quality of the leaves found in the district. The District is covered by three KL Divisions, Bolangir, Patnagarh and some parts of Titilagarh. The annual turnover and value of KL is given in the following tables. Table 8 b1: Quantity of Kendu Leaves Produced (in Quintals) 1994 1995 1996 Bolangir Division 23124.60 19338.00 24725.00 Patnagarh Division 33517.80 28227.85 24584.00 Titilagarh Division 26128.00 23757.00 27700.20 Total 82770.40 71322.85 77009.20 State 491000.00 386000.00 514000.00 Total of 3 Divisions / State(%) 17% 18% 15% After reorganization, Sonepur is now an independent district. If we exclude Sonepur’s contribution to the production (approximately equal to 50% of Bolangir Division) we get the figures for the new Bolangir district as: Table 8 b2: Quantity of KL produced (in quintals)

1994 1995 1996 Bolangir Division less that of Sonepur(approx.) 11562.30 9669.00 12362.50 Patnagarh Division 33517.80 28227.85 24584.00 Titilagarh Division 26128.00 23757.00 27700.20 Total 71208.10 61653.85 64646.70 State 491000.00 386000.00 514000.00 District / State(%) 15% 16% 13%

VI

The quality of the leaves being better in Bolangir the average sale prices for the leaves are much higher than the average sale prices for the state as a whole. The average for the district is generally more than 40% higher than the state average.

VII

Table 8c: Average Sale Price for Bolangir vs. Average Sale Price in the State District Average 4083.55 4074.52 4102.89 State Average 2895.21 3113.85 2782.00 District Avg. / State Avg. 1.41 1.31 1.47 Table 8d : Total Sale Proceeds for the District and for the State Total 3379.97 2906.06 3159.61 State 14215.48 11732.68 11684.50 District / State(%) 24% 25% 27% 7.1.4 Delayed Payment and Under-Payment for Kendu Leaf: Delayed payments for Kendu Leaf is a very serious problems. KL collection takes place in the Summer months which are the toughest time for villagers to survive. Delays in payment of wages for KL collection affects collectors severely. Sometimes it is after more than a year that pluckers get their dues. A delay of 4 to 6 months is quite common. This has serious impact on the pluckers. The delayed payments of KL wages pushes collectors to money lenders. Many cases have been noticed where villagers have taken loans from money lenders (at times from local Phadi munshis acting as money lenders) against their KL cards. With the high interest rates operating for the local credit system, when the payments finally come there is a big dent in that paying off the interests on the loans taken. Timely payment of KL wages can make a significant difference to lives of people and in reducing incidences of indebtedness. In case of Kendu leaves the Munshis very often ask people to collect more than the regulation 20 leaves per bundle. Some times they demand bundles of 25 leaves. In one of the two study villages the KL collection cards reported collections in terms of multiples of 50 bundles. Upon inquiry it was found that the Munshi rounded off the collection down to the last multiple of 50. That is a collection of 180 bundles would be put down as 150 bundles. There is no incentive for collecting better quality leaves. Hence the pluckers do not care to concentrate on collecting quality leaves. 7.2 MAHUA FLOWER The Flowers and Seeds of the Mahua tree (Bassia latifolia or Bassia longifolia or Madhuca indica) are two of the most valuable NTFPs found in Indian forests. Both Mahua flowers and seeds have been traditionally collected and used in various forms for consumption. Mahua flowers are the most important minor forest produce from the view point of the tribal people. 7.2.1 Use The sugary flower of Mahua (70% sugar content) has been traditionally used as a cereal substitute especially during cereal scarcity months of the late summer to early autumn. Uptil very recent past, Mahua flowers used to constitute up to 80% of the staple diet in these months. Even now local people, especially tribals, in the interior pockets of Bolangir and Nuapada, use Mahua flowers as food for considerable periods of time. In most areas, however, this use of Mahua flowers is on the decline; but as a symbolic acknowledgment of the erstwhile importance of Mahua in their diet, almost every family, in these districts, eats Mahua flowers in some form or the other at least once in a year.

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According to the elderly village folks the nutrition value of Mahua flowers far exceed that of rice and it is also said to possess medicinal properties. A diet of Mahua flowers is believed to develop resistance to colds and fevers. However, with increased demand of Mahua for liquor (Mahuli) brewing, consumption of Mahua is on the decline and local market demand for these forms of consumption is non-existent. The major market demand of Mahua flowers is for liquor making. There is a small demand for Mahua flowers to be used as cattle feed. Mahua flowers are considered as a good cattle feed (Mahua flowers are supposed to be a must for giving to the cattle on Gamha Poornima, the day on which cattle (more specifically bullocks) are worshipped. The use of Mahua to prepare liquor is also ancient and brewing of Mahua flowers is an art known to most people, however the present excise restrictions do not allow household brewing of liquor. The local demand for Mahua flowers for brewing is significant. However the major demand for Mahua flowers comes from Bihar and Maharashtra and also from other areas of the state. 7.2.2 Mahua Flowers as “Forest Produce” Mahua flowers can hardly be termed as strictly a Forest Produce. Although Mahua Flower is classified by the Government as a Minor Forest Produce, more than 80% of the production comes from non-forest land. In both Bolangir and Nuapada, as in all other places where Mahua tree are found, most of the Mahua trees are found in agricultural fields and uplands. There are not many trees in the forest and whatever trees are there they are highly unproductive because of various reasons, the chief reason being smaller crown areas possible under forest conditions. The classification of Mahua flowers as a minor forest produce subject to State regulations seem inappropriate as is the case with other such “forest produce” found primarily on private /non forest common lands such as Kendu Leaf, Tamarind and Char. The practice of imposing royalty over trees on private land was started in the British Period and has been continuing in independent India as well. 7.2.3 Availability and Production The collection season for Mahua flowers starts in late February and continues till mid April. The production of flowers are highly dependent on the precipitation pattern from February to April. Rains and hailstorms during the collection period or immediately before the collection season has adverse impact on the production of flowers. Much of the precipitation during this period is caused by cyclonic depressions in the Bay of Bengal and rain is accompanied by moderate to strong winds and sometimes with hailstorms. This leads to premature flower fall, poor quality of flowers (due to rotting) as well as damage to the canopy. All this lead to lower output and poor quality. 7.2.4 Method of Collection Collection is done from early morning to forenoon. Before collection the land under the crown area of the tree is cleared of weeds and grass to ease collection. Sometimes controlled fire is used to clear the ground flora and leaf litter under the tree. Collection efficiencies depend on availability of harvestable trees as well as flower fall rate, that depends on crown area and season. The production from one’s own trees, dependent upon both the number and quality of trees, was the single most important factor affecting the quantum of production. 7.2.5 Sharing of produce between Mahua tree-owners and collectors Collection from trees owned by other people is a major source of Mahua flowers for the poorer people. The usual share of the tree owner is half of the total produce collected. The availability of other people’s trees for collection is dependent on the number of trees held by households. Only households with very large tree holdings let out trees/ allow outsiders to collect. Most standard sized villages (more than 50 households) have at least a couple of

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households holding above 100 trees. Rarely some households own even more than a thousand Mahua trees. At the other extreme there are a few households who are quite often treeless. The more serious inequality in land distribution is with regards to the lower / semi-irrigated / irrigated lands. While large proportion of the poorer people do not have any low land almost all of them enjoyed de jure or de facto ownership at least over an acre or two of upland. It is on this type of land that most of the Mahua trees are found. Scientific practices for enhancing production of Mahua trees are lacking. But traditional practices like girdling the stem at a height of about a foot from the ground is believed to better yield and lead to timely falling of flowers. 7.2.6 Production of Mahua Flowers in Bolangir district Bolangir is perhaps the most important producer of Mahua Flowers in the state. The annual reported production of Mahua Flowers in the district is around 150,000 quintals. However the actual production figures are way above the reported amount. This is because of: (a) Illicit brewing activity that draws its supply from unreported sources, (b) Unreported collection to evade royalty (c) Amount used for preparing liquor at the household level. (d) Amount used as food by humans and as cattle feed. The production figure for the year 1994-95, the last year for which data was available for most of the NTFPs, was roughly 2 lakh quintals. If we assume that one-third of the total production goes unreported we get an estimate of actual production at 3 lakh Quintals. The value of the reported output at price fixed by the state Government (Rs 200 per qtl) amounts to Rs 4 crores (Rs 40 million). Similarly the estimated production amounts to Rs 6 crores. On the other hand at the average price (hovering around Rs 4 per kg) prevailing at the level of the villages the reported and estimated production stand at Rupees 8 crores and 12 crores respectively. Thus Mahua flowers as a source of income for the district as a whole is second only to Kendu Leaves. 7.2.7 ASPECTS OF THE MARKET SETUP Mahua is a state excise item and is subject to controls exercised by the Government under the Excise laws. Mahua flower is not procured under monopoly leasing system. There is no exclusive lease in any given area and control on collection and sale of the flowers is not exercised so much by the Forest department as by the Excise Department. On the other hand the Excise Department issues storage permits. Technically anyone can obtain a license by paying the required license fee and the fees are very nominal starting from Rs 1 per year for a license store up to 5 quintals to Rs 2000 per year for a license to store unlimited quantity. The storage licenses for Mahua flowers are not as widespread as may be expected under such a liberal market access. The most important market for Mahua flowers is Ranchi in Bihar. Madhya Pradesh and Maharashtra are also major destinations for Mahua Flowers from Orissa. Ranchi is the biggest market in terms of quantity of flowers handled but its importance stems more from its role as the node of the Mahua flowers traders cartel. Few of the local Mahua flower traders put it succinctly as “ Without permission from Ranchi the flowers would not even fall from the trees.” The hold of the Ranchi based cartel over the Mahua flower trade in Orissa is complete. There are the usual reasons behind this. Mahua flower trade in Orissa is more restricted than in any other state. As usual the greater degree of Government control provides

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greater scope for corruption. High degree of corruption implies greater hold of existing players on the market and greater difficulty for new players to enter the market. The price of Mahua flowers in Ranchi is the deciding factor behind the wholesale Mahua price in Orissa and at any given point of time the latter is usually Rs 200 per quintal less than the former. As the price of Mahua keeps increasing continuously after the first month of collection the price differential of Rs 200 at purchase time becomes greater by the time the flowers are finally delivered at Ranchi. For example the present lot collected at Rs 800 per quintal will be sold when the rate at Ranchi reaches Rs 1100 per quintal. This amounts to a gross margin of Rs 300 per quintal. After spending about Rs 100 per qtl towards transport by lorry, Rs 35 towards storage losses and sales commission, Rs 40 towards various Government levies and Rs 25 towards sleaze money to Government officials, about Rs100 is left as the sum total of storage charges, interest payments and profit. This amounts to a profit on sales ratio of approximately 10 %. But this is for the wholesale purchaser. Table 9a: Per quintal Expenditure on Mahua Flower storage and Transport Item of Expenditure Amount (Rupees) Forest royalty 7.35 Storage License Fee(approx.) 0.50 Export Excise 32.00 Sub total 1 39.85 Commission to Selling Agent 3.00 Loss in storage8 @ 4 kg/qtl, (Purchase price = Rs 700 per qtl) 28.00 Sub total 2 31.00 Transport Cost9 (train) 52.00 Transport cost(lorry) 100.00 Approximate extra-legal payments to Government officials 25.50 Total Cost (Transport by Train) 126.85 Total (Transport by Lorry) 174.85 Average Gross Profit Margin 300.00 Net Profit (Transport by Train) 173.15 Net Profit (Transport by Lorry) 125.15

The wholesale purchaser purchases from small businessmen who in turn purchase from smaller wandering businessmen who directly collect from the villagers. It is this multiplicity of agents that leads to the maximum amount of loss to the primary collector. As one goes down this chain the collection amounts dealt by a given businessman goes down and as a necessity exploitation rate goes up. The degree of price-exploitation depends on the holding capacity of the people. As holding capacity goes up the price differential between Mahua flowers sold at the village Hat or to wandering businessmen and that sold in bulk in wholesale markets falls drastically. Given the situation of indebtedness and liquidity problems the villagers capability to hold on to their Mahua stock is very limited. In the initial stages Mahua flower provides the sole NTFP income and Kendu Leaf money is yet to come in. This renders the villagers incapable of bargaining about the price. Hence the price at the primary collector’s level is much lower than the price at the wholesale level. On the other hand towards the end of the season Mahua flowers are available at the village level only with the relatively better off people who have

8 The monetised value of loss in storage depends on the purchase price. For the given calculation the current price of Rs 8.00 per kg is used. 9 Transport cost by train includes Rs 5 per quintal per trip for transport to originating station by lorry and transport from destination station by lorry plus loading and unloading charges of Rs 1 per trip.

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held on to their stocks. These people have greater bargaining power. Hence the ratio of village level price to wholesale price goes up. Table 9b: A Typical Price Variation Series (1998) Price at

Kantabanji (WP)

Village Level Price (VP)

VP/WP %

Potential profit from direct sale at Kantabanji

March to May 6 3.50 58.33 71.43 % June to August 8 5.25 65.63 52.38% September to October 9 7.00 77.78 28.58%

Source: Various Wholesale Traders, Kantabanji (WP: Wholesale price) Chart 1: Village and Higher Level Price Variation in Mahua Flower Price

0

2

4

6

8

10

Mar - Apr May - Jun Jul - Aug Sep - Oct

Kantabanji(WP) Village Level(VP)

Table 9c: Flow of Mahua from Primary Gatherer /Producer

Village Rank Village Level Retail Wholesale Final Market Bhainsadadar 1 Kutchia Dharambandha Khariar Road Raipur 2 -do- Ranchi Maharajore 1 Boden Khariar Ranchi 2 Raipur Kandrabhatta 1 Lathore Kantabanji Ranchi 2 Lathore Raipur 3 Ranchi Kharlikani Bolangir Bolangir Ranchi

( Rank indicates the importance of the channel in terms of total turnover) 7.2.8 MAHUA STORAGE ENTERPRISE The price of Mahua flowers is at its lowest in April and May. Gatherers are compelled to sell Mahua during this period as there is not much other income flowing in (bulk of the Kendu leaf income comes after the end of May). Typically the price of Mahua in April - May is one to three rupees less than the price in June - July. Under such a situation storing Mahua Flowers for two months and selling them after June can yield sizable returns to the primary collector.

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The main constraints to people being able to take advantage of the price fluctuation, is their inability to hold on to their stock given their hand to mouth existence. Availability of consumption credit from outside at this point of time can help at this juncture. Lack of access to formal credit and absence of alternative small credit mechanisms is a real problem. There is a need to accelerate efforts for thrift and credit societies / self-help Groups at the village level and link them up with enterprise to take up storage and marketing of Mahua. Given the maximum price of about Rs 400 per qtl and Rs 600 per qtl in April and June respectively, storage of Mahua Flower from April to June can yield a gross profit of Rs 200 per quintal. At such profit levels Mahua flower storage can be profitable even at interest rates of 10% per month. The table below depicts the rate of profit that can be obtained from storing Mahua flowers for a period of two months at various rates of interest and price appreciation. Table 9d: Mahua Storage Enterprise Profit potential from storage for two months (Profit figures in italics) Interest Rate( %) Per quintal Price Appreciation (in Rupees) Annual Monthly 50 100 150 200 18 1.5 38 88 138 188 24 2.0 22 72 122 172 30 2.5 2 52 102 152 60 5.0 -38 12 62 112 120 10.0 -118 -68 -18 32 7.2.9 Examples of Mahua based Micro-enterprises Many village based self-help Groups and DWCRA groups have taken up storage and marketing of Mahua flowers. In Boden Block of Nuapada ten women’ s groups have started storing Mahua. They are being facilitated by Lokashakti an NGO working in the region. Another NGO working in Nuapada, VISWAS is starting Mahua flower based enterprise in three villages. VIKALPA, a NGO based at Kantabanji has also been taking this up in their operational area. Value addition through storage of Mahua flowers was also a great success in Sundargarh district where various DWCRA groups directly supported by the DRDA and various self help groups facilitated by NGOs took this up. Apart from the profit obtained by eliminating middlemen and directly selling at a higher level, cooperative storage can also reap the benefit from the price increase cycle. However even without a cooperative primary collectors can reap the benefits of price increase through storage at individual level. But cooperativisation can help in getting permission to store as well as ensuring greater availability storage facilities.

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Case Study: Maharajore Women’s Self-Help Group (SHG) Maharajore Women’s Self Help Group was initiated in 1994 with the help of Lokadrushti, a voluntary organization operating in the southern parts of Nuapada district. It has a membership of 73 women. Maharajore is a medium sized village in Boden development block of Nuapada district. The village is just about 30 kms from Khariar which is a major market center for NTFPs. However due to the low bargaining power of the villagers the small Mahua flower traders operating in the region are able to force exploitative prices on the primary collectors. With interest free financial advance from Lokadrushti the SHG intervened in the market in April 1998 when traders were procuring Mahua flowers at Rs 3.50 per kg. The SHG purchased 20 qtl of Mahua at Rs 400 per qtl. This gave the primary collectors an immediate advantage of Rs 50 per quintal and also freedom from the cheating in weight practiced by the traders. In July 1998, after 3 months of storage it sold its entire stock for Rs 11000 at Rs 550 per qtl with a profit of Rs.150 per quintal and a gross profit of Rs. 3000.

7.3 MAHUA SEED AND OIL Besides the flowers the seeds of the Mahua tree are also a very important source of livelihood. Mahua oil is used for edible purposes by the tribal people as well as by other poor people. It’s particular ly relished in preparation of traditional rice cakes (Pith) of various types. Although commonly considered to be inferior and inedible nowadays, Mahua oil has been used as an edible oil since Vedic times. New scientific research based on experiments on mice suggest that Mahua oil is alright apart from a small risk of temporary impotence that goes away on stopping its use. Mahua seeds have been traditionally processed in Ghanis and Chappas (plank press) to obtain oil to be used as a cooking medium as well as a body oil. But the yield is low in the Chappa at around 20 % and improves to 25% to 30% in case of a Ghanis. With the establishment of small mills with power expellers in rural areas much of the oil is now extracted in them. The yield from power expellers is from 34 to 37 per cent10. Thus there is an advantage of up to 40% more oil if one extracts oil in a mill rather than a Ghani. But a large number of people e still use traditional methods which are considered to yield oil of better taste while taste of expeller oil is slightly bitter. People having more than 5 to 10 kg of seeds usually get oil extracted at the Ghana or the Mill. No monetary fee is usually charged for the extraction but the Ghana / mill owner keeps the De oiled Cake (DOC). At a DOC yield rate of approximately 50% and a market price of Rs 1.50 per kg of DOC the Ghani / mill owner charges about Rs 0.75 paise per kg of seed. However people having only small quantities of Mahua seed (up to about 10 - 15 kg) usually exchange them for oil. The surplus Mahua seeds are sold in the market. But in most areas of Bolangir and Nuapada districts there is hardly much of a surplus and almost all the Mahua seeds produced within these two district are used in local oil making. The average price for whatever Mahua seed comes to the market hovers around 5 rupees to 9 rupees. The wholesale market at major centers in the region pays a price of from 9 rupees to 11 rupees per kilogram. UFPL has the lease for collecting Mahua seeds in Bolangir and had the same for Nuapada till last year. But the collections have always been poor both because of the low surplus as well as the very low price paid by UFPL which results in illegal trade and smuggling in to Madhya Pradesh by large and small traders as well as Mill and Ghani owners. Financial analysis of Mahua Oil Extraction in Ghani The traditional oil millers(Teli) earn most of their living from providing traditional (Ghani) oil milling services to the villagers as well as by purchasing oilseeds and extracting oil for 10 NV Bringi, Non Traditional Oilseeds of India, 1987

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sale. Up to 75 % of their livelihood comes from oil milling. Mahua is the principal oilseed and in the production season the daily income of the oil miller may go up to almost Rs 100 per labor day and that of a husband wife oil milling team the daily income could reach Rs 200 for about 30 days every year. The oil extraction rate is approximately 1.5 kg per every Ghani load of 5 kg of ground seed and about 2.25 kg of De Oiled Cake(DOC) is obtained. The income per day depends upon the price at which Mahua seed is purchased and the price at which the oil is sold. At the current prices of about Rs 8.50 per kg of Mahua seed paid by the oil millers and oil price of Rs 34 to 36 per litre income per Ghani load ranges from 9.20 rupees to 12.20 rupees. This is equivalent to an income of about 75 rupees to 100 rupees respectively per Labor Day. Table 10a: Costs involved in Extraction of Mahua oil in Ghani Item of Expenditure Rate Per Ghani ( 5 kg) Grinding of Kernels in Mill Rs 0.50 per kg 2.50 Purchase of Tola Rs 8.50 per kg 42.50 Wood Rs 0.50 per kg 3.00 Total Monetary Cost 48.00 Labor Expended Rate Per Ghani ( 5 kg) Purchase and Grinding 4 hours per qtl by one person 20 person minutes Boiling & Extraction 20 minutes from 2 persons 40 labor minutes Total labor cost 60 labor minutes

Table 10b: Income from Mahua Oil Extraction Enterprise Revenue Sale Price of Oil ( in rupees per kg) A Item of Revenue per Ghani 36 34 32 30 B Oil 1.5 kg oil 54.00 51 48 45 C DOC 2.25 @ 2.75 /kg 6.20 6.20 6.20 D Gross revenue 60.20 57.20 54.20 51.20 E Income net of cost 12.20 9.20 6.20 3.20 F Income per labor day ( 8 hrs) 97.60 73.60 49.60 25.60

In case of selling oil milling services the oil millers get only the DOC as the milling charges. In monetary terms the net charges (net of fuelwood cost) come to Rs 3.20 per Ghani load and thus yields an income of about Rs 40.00 per Labor Day. Given the fact that both husband and wife work full time at the Ghani the daily income from milling for others is about Rs 80. The price of Mahua seeds mostly depends on the local price of edible Mahua oil. This price in turn depends on the price of other edible oils, especially of mustard oil. Over the past few months the price of edible oils has seen skyrocketing prices. The wholesale price of mustard oil has increased almost by 100% (from Rs 2825 per qtl to Rs 5600 per qtl). The wholesale price of Mahua oil has also risen 50% from Rs 2225 per quintal to Rs 3300 per quintal (Delhi, 8/10/98). All through the local level price of Mahua oil sold for edible purposes has been consistently higher than the price of Mahua oil in the wholesale market. At the micro level the impact of rising oil prices has led to a greater demand for Mahua oil and the price of Mahua oil has increased to 33 rupees a kilo from about 28 rupees per kilo a year ago. There has been a consequent rise in Mahua seed prices but not to the extent of rise in oil prices. This may be ascribed to the low bargaining power at the village level and also to a some extent to the fact that the real boom in oil prices came after the Mahua seed season was over.

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Mahua seed processing at local level has always been an enterprise for the Teli caste. While Mahua flower storage, broom binding, leaf stitching etc. have been taken up as micro enterprise by women’s groups in many places of Orissa, Mahua seed processing has not seen such enterprise. In this context the case of Mahua oil extraction by the Gadiajore Women’s Group is a pioneering work. 7.3.1 Case: Gadiajore Women’s Group Gadiajore women’s group was initiated in 1996. Since its inception the group has received active support from the village Forest Protection Committee (FPC). Due to the very low price paid by local traders, the committee decided to start Mahua seed collection and oil extraction and sale. In 1997, the women’s group collected 10 quintals of Mahua seed and extracted oil at the local mill. The capital for the enterprise came from a 2000 rupee loan from the FPC and 2000 rupees from its own funds. 2000 rupees worth of Mahua seed was procured on credit. A total of 26 tins of oil was extracted at the average rate of 1 tin (approximately 15 kg) of oil per 40 kg of seed. Of this 12 tins went towards settlement of the loan and the credit purchase dues. Of the remaining amount 8 tins worth approximately Rs 3600 is in stock. The rest has been sold / loaned / and exchanged to yield a gross value of approximately 3500 rupees. The group has thus earned a profit of more than 5000 rupees from a purchase turnover of 8000 rupees. The group has earned more than 125% in terms of return on capital employed and 250% in terms of return on owner’s capital. 7.4 SAL SEED (SEED OF Shorea robusta) Tribals in the Sal zones of Orissa have traditionally used Sal oil as a cooking medium. But the traditional method of Sal fat extraction by boiling the ground seeds to release the fat is a very time taking and fuel consuming process. In the very subsistence kind of societies with abundant fuel wood supply and not much opportunities for wage labor and little external market interaction, Sal fat extraction in this manner was feasible. But with the availability of substitutes, the extraction and use of Sal fat in this manner is fast disappearing. Expellers are not suitable for Sal fat extraction on a profitable scale. But the installation of numerous solvent extraction plants in the state and the emergence of a strong demand for Sal fat as a cocoa butter substitute led boosted Sal seed trade in India. With the growing

Forest Protection in Gadiajore Gadiajore is situated in the Patnagarh block of Bolangir district. The village is protecting and managing about 1200 hectares of Patra and Reserve forest in its neighborhood. Due to large scale legal clear felling in the 1970s’ the forests had degraded very fast. By the early 1980s’ even essential items like fuel wood and fencing material had become acutely scarce. In 1983 the villagers led by the traditional village headman Shri Bhubaneswar Thakur started protecting the forest. But by 1985 the villagers were unable to pay the watchman and for 10 long years from 1985 to 1995 Sri Bhubaneswar Thakur guarded the forest all by himself with occasional help from the villagers. By 1995 the first growth of Natural bamboo came up in the forest. In 1993 Regional Center for Development Communication (RCDC), an NGO working on people’s rig hts on forest and Natural resources, began working in the area. Inspired by the good growth of forest and the active involvement and assistance of RCDC to systematize the process the villagers got together again and started Thengapali (rotational watchman/ watch group system wherein people take turns to guard the forest). Now more villages in the neighborhood have taken up forest protection and have formed the Vasudha Vikash Samiti, a cluster level organization of forest protecting groups.

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importance of Sal De Oiled cakes (DOC) in the international market the demand for the seed has strengthened further. Keeping this in view the Government Nationalized the trade of Sal seed. But it has used its right not to enhance the income of the primary collectors nor the state Government but to pass on huge profits to private monopolists who have been accorded long term lease all over the state. At present the price of Sal seed has been fixed by the Government at 175 rupees per quintal and this price has been in force since the early 90s’. Th e interesting part is that for one year the price had been raised to Rs 250 per qtl. The Utkal Forest Products Ltd.(UFPL) a joint sector company with controlling interest by the private partner has been given exclusive right to purchase Sal seed almost over the whole of Orissa. But the lease for Bolangir has been with Prithi Oils a private sector company. Over the years both UFPL and Prithi oils have reported measly collection figures. For instance the average collection of Sal seed in Bolangir district was 215 MTs per annum in the period 1992-94 when OFDC was the collection agent. In the period 1995-97 when Prithi Oils Ltd. was the procurer the average collection was about 44 MTs per annum, about one fifth of the former figure. Even for these minuscule collections the lease holders are able to ensure a maximum village level collection price of only about Rs 1.25 per kg. This implies that after spending more than 5 days in collection and processing and carrying half a quintal of the seed to the collection agent yields only about 60 rupees. The daily income comes to roughly 10 rupees per kg. Even this is not assured as the collection of the seeds are low and erratic. Due to such low returns and uncertainty of marketability most people in the Sal regions of the two district have stopped collecting Sal seed. At any rate the current price for the seed is not justified as the procurers sell at a high rate to TRIFED. In fact the TRIFED annual report for 1995-96 mentions the irregularity involved in the purchase of Sal seed from Orissa oil Industries ltd. and Utkal Oil ltd. at Rs 3300 per MT while the sum total of expense incurred by them plus the commission of Rs 150 per MT comes to less than Rs 2300 per MT. The oil companies thus made a cool profit of Rs 1000 from marketing support by TRIFED, the organization created to safeguard the economic interests of the tribals. If this additional 1000 rupees could be paid to the primary collectors, they would have got a price of Rs 2.75 per kg.

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7.5 CHAR SEED (SEED OF Buchanania lanzan) Char seed or Chiraunjee dana is the highest priced NTFP of common trade. The kernels of the seed are used in the preparation sweetmeats etc. as a substitute of Almonds. The oil is a close substitute of olive oil and almond oil in confectionery and traditional medicine. The wholesale price of Char kernel at major centers(Delhi, 8/10/98) is more than 300 rupees per kilo. The collection price for the seeds have ranged from 50 rupees to 100rupees for the kernels and 9 rupees to 25 rupees for the whole seed (with the seed cover). The general opinion about why raw seeds rather than kernels were sold was that it was not profitable to extract kernels. By traditional decortication about one kg of kernels can be extracted from about 4 kg of seeds. Thus at current prices of Char kernel it often is not profitable to decorticate. Beside the traders complain that villagers do not decorticate properly and in the process the kernels are damaged leading to lower value of the kernels in the market place. With modern cottage level decortication equipment the yield income can increase manifold. But what is worrying is that even when properly decorticated the village level price of Char seed is at the maximum only 30 % of the wholesale price. At the minimum it can be about 17%. There is thus a great scope of value addition through better marketing. 7.6 OTHER NTFP BASED MICRO-ENTERPRISES 7.6.1 Broom Grass Processing Enterprise, Women’s Groups in Thuamul Rampur About four years ago Orissa police cracked down heavily on Women’s groups at two places. At both the places the women’s groups were accused of binding broom grass in to broomsticks rather than selling it raw to the Tribal Development Cooperative Corporation of Orissa(TDCC). TDCC has a monopsonistic right to purchase Broom Grass all over the state and tying of brooms by village women was said to be a violation of their right. The stocks of the women’s groups were seized and some of it was destroyed and some people who had encouraged the women were arrested. The suppression of the right to process broom grass to broomsticks has since then been a symbol of the disempowerment of tribals and infringement of tribal rights of using forests they live in and live with. Kaniguma and two other Mahila Samiti in the Thuamul Rampur block, Kalahandi were part of this struggle to get the rights to process broom grass. Encouraged by the District Rural Development Agency and Antyodaya, an NGO working in the Kalahandi district, women’s groups in three Panchayats of the Thuamul Rampur block started processing broom grass in to brooms. The price paid by TDCC for broom grass was very low but brooms could sell for a good price in the consumer market. The first police action came in 1994 but a compromise was reached and the TDCC purchased all the stocks from the women’s groups. The second and more virulent police action came in 1995. But police repression has not killed the spirit of the women and broom making continues albeit at a small scale. Broom grass is available in the forest in the winter. Collection for the entire year has to be made in this brief period and is stored to be processed afterwards. Broom grass is collected by women and the average collection is from 4 to 5 kg of broom grass per day. One kg of broom grass can make at least three brooms. Thus it takes about 7.5 labor days to collect enough material for 100 brooms (100 brooms is used as the unit to simplify calculations).

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It takes about 5 complete labor days to bind 100 brooms and half a labor day to collect enough Siali fibre for binding 100 brooms. But the brooms can also be bound with plastic strings and such brooms fetch a much higher price. Average return for labor spent on broom grass collection and binding taken together ranges from about Rs 38.50 to Rs 56 per day. The total return on the entire labor spent on producing 100 brooms ranges from 500 to 700 Rupees. A single woman can collect enough broom grass for 300 brooms and thus processing only the broom grass collected by her she can get additional income of 1500 to 2800 rupees per annum. The average return per day is varies from about Rs. 38 to Rs. 56 and this is two to three times the village level wage rate and 28% to 87 % higher than the minimum wage rate fixed by the Government. The table below depicts the costs of and benefit from the production of broomsticks. Table 11: Income per Labor Day in Broom grass Processing Enterprise Expenditure and Income Heads Cost per 100 brooms Siali bound Plastic bound A Collection of broom grass (in labor days) 7.5 7.5 B Collecting Siali Fibre for binding (labor days) 0.5 C Binding Brooms (labor days) 5.0 5.0 D Total Labor days per 100 brooms(labor days) 13.0 12.5 E Cost of Plastic fibre for 100 brooms(Rs) 100 F Sale Price per 100 brooms 500 800 G Return for Labor per 100 brooms( F - E) in Rupees 500 700 H Return for labor per day ( G / D) in Rupees 38.50 56.00

8. Exploitation Of Primary Collectors In NTFP Trade: The primary collectors are subject to various forms of exploitation by virtue of their weak bargaining position in the trading process. The environment of monopoly trade without any supportive mechanisms to ensure that the monopoly operators honor the commitment to pay the State administered prices leaves the primary collectors very vulnerable. The “illegal”/ petty traders that operate have to do so at considerable risks and increased transaction costs, which leads to depressed prices. One of the major features of the Monopoly trade is that the monopoly holder is bound to buy all NTFP, however the very low procurement figures by Utkal Forest Products indicate that only a fraction of the available NTFPs is bought by them. It is also seen that since UFP has the State wide lease and does not have the network or the Working Capital to be able to procure all the produce available. Low procurement by the lease holders leads to an uncertain atmosphere with regards to availability of market for the NTFPs collected by the primary collectors. Uncertainty with regards to availability of buyers for the various products has discouraged villagers from collecting NTFPs. Non-payment and delayed payment of wages is another major deterrent. Sal seeds collection has especially suffered in this atmosphere. Most of the petty traders operating give out loans/ advances to primary collectors. This is one area of exploitation. Absence of legal competitors in the market and access of villagers to small credit poses are the two most important constraints from the primary collectors perspectives.

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There also exist exploitation in measures and small interventions like community weighing centers where the primary collectors might weigh their produce before taking it to the market might help in preventing this form of exploitation. 9. Main Findings and Recommendations The village studies clearly establish the importance of NTFP in the local rural economy and the need to address issues relating to rights and access of poor to marginal common lands and State forestlands. The poor, having no or little agricultural land/ other assets, depend heavily on forests and encroached uplands for sustenance and survival. NTFP collection is a major economic activity that constitutes a significant part of their insignificant below- poverty line incomes. Contribution of income from NTFPs to the total income of the poorest households ranges from 15% to 50 % and above. Thus issues of rights to access of forests and forest products and incomes from forest products are issues of basic sustenance for these people. Any rural development intervention to be effective would need to address some of the basic structural problems relating to land distribution, land rights, access to natural resources esp. forests and marginalisation of access of weaker sections to resources, markets and development programmes. It is of immense importance to address the issue of right to livelihood for these forest dependent men and women; and ease out all the structural constraints that restrict their access to forest products and their markets. Unless these basic issues are addressed development investments can yield very little lasting results. 9.1 NTFP POLICY CHANGES Policy changes for NTFPs in the direction of allowing free trade of NTFPs and encouraging local level processing to create employment and incomes at local level are an urgent immediate necessity. State Monopolies depress prices hence should be abolished immediately. The following Policy changes would be pertinent and DFID could discuss the possibility of such changes with the State Govt. These would have far-reaching implications for livelihoods of rural people all over Orissa and esp. for the poor in Western Orissa having high degree of dependence on NTFPs and high degree of vulnerability from drought etc.

Free-trade and Minimum Support Price Free trade for all NTFPs except the currently Nationalized NTFPs (KL, Bamboo and Sal seeds) should be allowed; and these should be taken out of State Regulation. The primary collectors should have the right to collect, process and market NTFPs freely. However given the low bargaining position of primary collectors and high likelihood of exploitation at the hands of the local traders; mechanism to safeguard the interest of primary collectors should be created. The Government should work out a system of minimum support price. The Minimum Support Price (MSP) should be based on the principle of incremental margin working backwards from the actual market price, as followed by Girijan Cooperative Corporation in Andhra Pradesh. 9.2 ROYALTY ON NTFPS The current system of giving leases for NTFP procurement is based on the relative ease of royalty collection. However, alternatively there could be royalties on transit, similar to the system in case of Mahua Flowers. The system worked out by the Khariar DFO is well within the purview of the existing legal framework. Similar system can be worked out for Bolangir district as well. The total royalty that the State is currently getting from the non-nationalized NTFPs is only around 70-80 lakhs for the State for all the products. This is at the cost of enormous losses to the income of the poor due to depressed prices. These low royalties are primarily due to under-reporting on collection and smuggling of NTFPs across the State borders. By changing the existing lease systems and replacing that with taxes on NTFP transits can increase both the revenue to the State as well as income to the collectors. It was worked out that in

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case of Hill brooms if the State royalty is done away it can increase the income to women involved in broom making by three times. Royalty on nationalized products should be linked with the price prevalent at the level of the primary collector, and should be a fraction of the price to the primary producers. Transit formalities should be relaxed and should be made simpler. For NTFPs other than nationalized NTFPs transit formalities should be relaxed to ensure free trade. The implications of this need to be debated and analyzed. In case of Mahua flowers, excise regulations should be relaxed. No excise duty should be charged on use of Mahua flowers as ingredient in Cattle feed and other non-alcoholic use.

Reservation of certain simple NTFP processing activities exclusively for household/ cottage/ small scale enterprises:

Simple processing activities such as broom making, leaf plate making, tamarind processing, mat and rope making should be exclusively reserved for the household/ cottage industries. The possible implications of this can be explored further. This could be one area where the DFID Project could provide support for encouragement of such enterprises. 9.2.1 KENDU LEAVES Kendu Leaves is one the most important economic activity after agriculture in rural areas, especially for the poor. In the study villages it was found that KL incomes contribute significantly to the household income (contributing around 15-20% of the total income of poor households). This contribution is significant considering that 70% of the households in Nuapada district are below Poverty line. (For details refer to Table No. 6 a1to 6c5). Given the enormity of scale of operation for KL, Kendu Leave should continue under State Nationalization. However, the State should pass on the enormous profits made in the Kendu Leaf trade as bonus to the KL pluckers. The collection prices should also be hiked so as to increase the share of pluckers to a level comparable to what their brethren in the neighboring states are receiving (e.g. Madhya Pradesh and Andhra Pradesh pass on about 40 % of the sale revenue to the pluckers). Village level KL pluckers’ cooperative should be given the responsibility of managing Phadi Centres, their maintenance etc. gradually. In case of KL, the Government is contemplating trying out Privatization in some parts. Privatization in case of KL would be counterproductive. KL Unions as well as the FD officials are both of the opinion that this would neither serve the interests of the collectors nor the revenue interests of the Government. The problem of under-reporting of collection and smuggling of produce, which is found in other NTFPs leased to private parties, would be of greater intensity in KL context. Thus, the Government should not go in for Privatization of KL trade. Any steps for decentralization in KL trade should in stead be in the direction of shift of control with cooperatives of Kendu Leaves Pluckers. An earlier analysis of KL collection in the Bolangir KL Circle (Bolangir, Kalahandi, Nuapada, Sonepur, part of Nowrangpur and Koraput districts) pointed out that even if the Government of Orissa shares 50% of the royalty generated by the KL trade with the KL pluckers through the above mechanisms, the additional income generated for an average HH involved in KL plucking would be almost Rs. 1500/annum. Considering that almost 70% of the rural population are below poverty line in the area, the impact of this additional income available during the lean period of April-May, on poverty alleviation would be very high. (For details refer to Annexure 6)

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Timely payments of KL collection charges to the pluckers can help reduce the incidence of indebtedness with local money-lenders. All steps need to be taken to remove the bottlenecks that delay KL payments. 9.3 MICRO-ENTERPRISES FOR LOCAL LEVEL/ PRIMARY COLLECTORS INSTITUTIONS/

COOPERATIVES FOR PROCUREMENT, PROCESSING AND MARKETING: There exists great scope for Micro-enterprises based on NTFPs for local level processing. The study indicates that there exists potential for encouraging Mahua Storage & marketing enterprise, oil extraction from Mahua Seed, decorticating of Char seed etc. Medicinal plants are another area whose potential has not been tapped till now. A NGO Sabuja Viplab has been working on marketing tie-ups for medicinal plants. Since these medicinal plants are out of the purview of Monopoly leases, these items can be traded freely. Support for Micro-Enterprise development can be a crucial part of the DFID Project. For encouraging micro-enterprises the following inputs would be required: 1. Social inputs for facilitating for organizing women and men forest gatherers into User

Groups/ Cooperatives. 2. Provision of Working Capital, as credit is a critical input needed for these enterprises

other than social organizing inputs. 3. Skill Up-gradation programmes for value addition, packaging, stocking, accounts and other management

skills. 4. Provision of storage and transport infrastructure of the government agencies to primary

collectors’ organizations on rent. 5. Provision of help for better Marketing of output by higher order cooperatives /

Government institutions. 6. Reorientation / Restructuring of Existing Government Institutions.

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Value Addition Possibilities In the NTFP trade the primary collectors receive a very low share out of the final market value. There is a great scope for increasing the incomes of the primary collectors through various modes of value addition. Various Value addition Possibilities Transport Grading Storage Collective Marketing Simple processing such as Decorticating, De-seeding, Pulping etc. Binding, Stitching Fibre extraction Handicrafts Oil Extraction Many of the value addition techniques, primary processing as well as cottage level processing can be directly adopted at the household level. For others like aggregation, transport to distant markets, storage of items requiring special facilities (e.g. Raw Tamarind), higher end processing like oil extraction, mechanized decorticating, mechanized stitching, building customer loyalty, accessing higher market information etc. formation of Self Help Groups cooperatives is essential. At very high levels of processing (solvent extraction) and trade (export) larger cooperative federations or Government corporations have an important role to play. Similarly, wherever federations/ organizations of primary collectors’ are willing and capable, they may be supported to set up such processing units.

9.4 Role of TDCC, OFDC etc. Organizations such as TDCC, OFDC etc. should have a support role to grassroots level organizations-they would provide market linkage (in a free market scenario), administer minimum support prices, upgrade skills and capabilities of the grassroots organizations etc. These agencies should function as or be replaced by Marketing Promotion Boards. TDCC, OFDC, Oil Federations etc. should take up higher level processing (which is not possible at primary producers’ level) in order to create market for the processed products of the primary collectors' organizations Revamping TDCC Tribal Development Cooperative Corporation, which is one of the main actors in the NTFP trade in Orissa, suffers on account of high managerial overheads. TDCC’s counterpart in Andhra Pradesh, GCC is able to play a pivotal role in providing marketing support to the primary collectors; while TDCC in Orissa is plagued with losses and has come to acquire the reputation of being one of the biggest exploiters of tribals. But theoretically an organization like TDCC can play an important role in providing marketing support and market information (though not as the monopoly procurer of NTFP items). Managerial subsidy to TDCC: In case of GCC of Andhra Pradesh and the respective TDCCs of West Bengal and Maharashtra, the respective State Governments fully subsidize their managerial expenditure. In Orissa the subsidy on this account amounts to Rs 20 lakhs per annum which is less than 15% of the total managerial expenditure. For greater stability and better operation of TDCC the Orissa Government has to do the same as these other states. Royalty: The GCC and the TDCC of West Bengal are reimbursed by their respective state Governments for the entire royalty amount paid by them. Maharashtra compensates for the

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loss on trading account. In Orissa there is no reimbursement for the royalty paid. Reimbursement of the full amount of Royalty is going to benefit the TDCC by Rs 80 lakhs per annum and wipe out its annual loss on the trading account (from figures for 1993-94). Purchase Tax and Sales Tax: - GCC is fully exempted from sales tax and purchase tax. TDCC is burdened with a sales/purchase tax figure of Rs 15 lakhs, which depresses the sale rate. The TDCC should also get the same kind of exemption as the GCC of Andhra Pradesh. TDCC has to bear an annual interest burden of Rs 200 lakhs on borrowings for working capital. TDCC has proposed to the Government to sanction a one-time grant of Rs 8.5 crores as procurement advance. To help TDCC play a constructive role in NTFP trade and in increasing the benefits to primary collectors the following would be important: • Repositioning of TDCC/ redefining its role more as a marketing support organization

instead of monopoly procurer of NTFPs. • Managerial subsidies to TDCC • Reimbursement of royalties • Exemption from Sales Tax and Purchase Tax • One time grant for Working Capital Possibilities of support to TDCC should be actively looked into in the DFID Project. Marketing and Market Information Market Information dissemination is very crucial and support to various existing Government organizations such as TDCC, OFDC and NGOs for being able to provide market information as well as marketing support can be built into the proposed DFID Project. Greater access to relevant market information can enhance the bargaining power of the primary collectors in market situations. Stronger linkages should be developed between the primary producer and the final consumer through better retail network and marketing support. 9.5 Establishment of R & D facilities for: • Skill Up-gradation • Development and extension of Appropriate Technology for NTFP processing • Compilation and Dissemination of Market Information • Finding alternatives for better and more profitable uses of NTFPs • There needs to be shift in focus from timber to NTFP, and this shift needs to be supported

by research in the direction of NTFP based forest management systems. There is a need to encourage involvement and active role of NGOs, Experts, research institutions for marketing and training support to the primary collectors and their Cooperatives, and for R& D efforts for improving production and processing methods. This is an area where the DFID Project could provide support.

Annexure 1

List of NTFPs in the surveyed villages of Bolangir and Nuapada

NTFP Dist: Bolangir Dist: Nuapada Sl No

Local name English name

Kharlikani

Kandrabhatta

Gadiajore

Bhainsadadar

Maharajore

1 Mohul Mahua Flower

A, S, C A, S, C A, S, C A, S, C A, S, C

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2 Toll Mahua seeds

A, S, C A, S, C A, S, C A, S, C A, S, C

3 Kendu Patra Tendu Leaf A, S, C A, S, C A, S, C A, S, C A, S, C 4 Chara Chiranjee A, S, C A, S, C A, S, C A, S, C A, S, C 5 Kendu Tendu A, S, C A, S, C A, S, C A, C A, C 6 Chatti Mushroom A, S, C A, S, C A, S, C A, C A, C 7 Patara Sal leaf A, S, C A, C A, S, C A, C A, C 8 Saaga Leafy

Veg. A, C A, C A, C A, C A, C

9 Kardi/ Hendua

Bamboo shoot

A, C A, C A, C NA NA

10 Veluaan Bhalia A, C A, C A, C N. A. N. A. 11 Aonla* Aonla A, C A, C A, C A, C A, C 12 Bahada* Bahra A, C A, C A, C N. A. N. A. 13 Harida* Harra A, C A, C A, C A, C A, C 14 Pata Fibre A, C A, C A, C N. A. N. A. 15 Kathi Brush stick A, C A, C A, C N. A. N. A. 16 Kusum Kusum N. A A, C A, C N. A. N. A. 17 Tentuli Tamarind N. A A, C A, C N. A. N. A. 18 Jamu koli Black

Berries N. A A, C A, C N. A. N. A.

19 Banji Bamboo N. A A, C A, S, C N. A. N. A. 20 Kanda Roots &

Tubers N. A A, C A, C N. A. N. A.

21 Nageshwar N. A A, C A, C N. A. N. A. 22 Mahu Honey N. A A, C A, C N. A. N. A. 23 Karanj Karanj N. A A, C A, C N. A. N. A. 24 Bela Woodapple N. A A, C A, C N. A. N. A. 25 Aamba Mango N. A A, S, C A, C N. A. N. A. 26 Panasa Jack fruit N. A A, C A, C N. A. N. A. 27 Sargi Manji Sal seeds N. A A, C A, C N. A. N. A. 28 Barada N. A A, C A, C N. A. N. A. 29 Limba Neem N. A A, C A, C N. A. N. A. 30 Chatal N. A A, C A, C N. A. N. A. 31 Kenti N. A A, C A, C N. A. N. A. 32 Kernels N. A A, C A, C N. A. N. A. 33 Thelka N. A A, C A, C N. A. N. A. 34 Asadia N. A A, C A, C N. A. N. A. 35 Siyadi N. A A, C A, C N. A. N. A. 36 Gerul N. A NA NA A, C N. A. 37 Chironta N. A. N. A. N. A. A,C N. A. A = Available, S = Sold, C= Consumption * Together the three products are known as Triphala or Myrobalans

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Annexure 2: Availability, Collection, Processing and Marketing Status of

NTFPs NTFP Collection Source Availability Marketing Processing purpo-

sive Non-purpo-sive

Mahua flower

Yes -- Forests, Agricultural land

Cutting of Mahua trees from forest has reduced its availability.

Village based marketing through Kutchia (middle man) . occasionally sold in the nearby market, also exchanged for salt, onion, potatoes etc.

Drying in sun before selling

Mahua Fruit

Yes -do Cutting of Mahua trees from forest has reduced its availability. Availability is very uncertain and irregular

Village based marketing through Kutchia (middle man). Occasionally sold in the nearby market, also exchanged for salt, onion, potatoes etc. The Teli caste (indigenous oil millers) sell tolo (seed) oil in the weekly markets.

local level processing of seed into oil and ghee.

Char Yes Forests and common lands

Decreasing over the last 3-5 years due to the decrease in trees. Natural factors like excessive mist and hailstorm etc., also affect its availability.

Village based marketing. People also exchange it for salt and other commodities in the local market

Separation of seed and pulp indigenously. Absence of higher/further processing due to lack of know-how.

Myrobalans

Yes Yes Forest Available in small quantities.

No local market. Drying and salting.

Kendu

Yes Forest Cutting of trees for fuel wood has decreased production.

Sold only on surplus collection..

Nil

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Annexure 2: contd … Availability, Collection, Processing and Marketing Status of NTFPs

NTFP Items

Collection Source Availability Marketing Processing

Kendu Leaves

Yes Reduced availability due to improper Guchha katta (trimming) and encroachment on common lands. *The sparse density of the trees over an area also affects collection.

Sold at government phadis or collection centres.

Bind 20 leaves into one Keri.

Sal seed

Yes Forest Availability decreased. and seed bearing rate has decreased noticeably.

Being a leased out item it was sold to the agent at fixed prices at Kharlikani though in the other villages there is no market demand

Decortication prior to sale.

Kanda (Roots and Tubers)

Yes Forest Owing to the present status of the forest available only in Kandrabhatta and Gadiajore.

Marketing is not done. Nil

Mushroom Yes Forest Uncertain & irregular availability. Availability has decreased due to decreased leaf litter.

Occasional selling in case of surplus collection.

Dehydrating a certain amount for consumption round the year is practiced.

Kardi

Forest Drastic reduction in availability due to, cutting of Bamboo both by contractors and local people.

Sale in small quantities by landless and poor people in case of surplus collection.

Processing involves grating , soaking in water and drying.

Other Seeds Bahada,

Kusum, Karanj , Nageswar etc.

Yes Forest Collection is need specific. No market demand. Traditional processing practices.

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ANNEXURE 3

Office of the Divisional Forest Officer, Khariar road, Office Order No 93/ Dated 29/4/98 In the interest of public and in the interest of Government revenue and to check the smuggling of NTFP items which were previously leased out to M/S Utkal Forest Products who has failed, up to a great extent to honor the commitment and agreement with the Government of Orissa, the following steps are being undertaken. These steps are being taken as no clear cut instruction has been received from the authorities to dispose of the NTFP items whose production process is a highly time bound phenomenon. 1. All the Range Officers are instructed to dispose of NTFP items which were leased out to M/S Utkal Forest Products through Department/ Royalty Permit by realizing the royalty as mentioned in Annexure 1. 2. The procedures and the guidelines which are to be followed towards the realization of royalty of NTFP items are as follows: a) All the Range Officers are directed to make wide publicity that the primary gatherers may

sell the NTFP items to the approved traders at the approved rate fixed by the District Price Fixation Committee Nuapada /Bargarh as the case may be.

b) Interested persons to trade in the mentioned NTFP items will intimate their Names to the

Divisional Forest Officers through the concerned Range Officers. They are also required to intimate the Names of their Collection Centres, depot through the concerned Range Officer for approval of the same.

c) They will furnish an understanding to the effect that – the primary gatherers will be paid

the approved procurement price fixed by the District Price Fixation Committee (Nuapada and Bargarh as the case may be).

d) Failing this their trader-ship in this division will be cancelled. e) The traders will maintain a register in their collection centre and also in the depot which

will reflect their collection and storage figures. The traders will be supplied with a printed book containing 50 pages in the triplicate numbered serially for requisition towards Dept. Permit/ Range Permit to transport the NTFP items from their collection centre to the godown or depot (exactly like the guidelines of Mahua flower trade in this division).

f) The Section Forester or the Range Officer will realize the royalty as per the Annexure rate

(furnished in the Annexure 1). The limit of the royalty permit is - restricted within the Division only. No Range Officers or Section Foresters will issue departmental permit beyond the jurisdiction of Khariar Forest Division.

g) The traders are eligible for disposal of collected NTFP items for the control depot as per

the procedure prescribed in the Orissa Timber and other Forest Produce Transit Rules, 1980 (as amended up to 1984).

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h) The first copy of the authorization for royalty - should be posted with the duplicate copy of the royalty permit book, which shall be sent to the Divisional Office along with the monthly cash account. The 2nd Copy of the royalty permit and the 3rd Copy of the authorization will be retained by the traders as a matter of govt. record for verification and future references.

The traders are requested to submit their M.P.R on collection and disposal of the NTFP items through the Range Officer so as to reach this office by the 1st week of the following month.

P.C. Mallick Divisional Forest Officer

Khariar Forest Division

Annexure - 4 NTFP items to be disposed of by concerned Range Officials on realization of Departmental Royalty for the purchasers of MFP items. name of MFP items Area of operation Unit rate per quintal rate of royalty

fixed crop year (1997-98) Per quintal @ 4-5% of Min. Support price.

Char seed, Chironji Dana. Whole of Khariar division 150, 625 respectively Kusum seed Whole of Khariar division 40 Mahua seed Whole of Khariar division 75 Chakunda Whole of Khariar division 35 Neem seed Whole of Khariar division 35 Babul seed Whole of Khariar division 30 Karanj seed Whole of Khariar division 30 Bantulsi Whole of Khariar division 32, 60 Gobo seed Whole of Khariar division 70 Siali seed Whole of Khariar division 40 Gill seed Whole of Khariar division 20 Banahaldi Whole of Khariar division 30 Shikakai Whole of Khariar division 70 Palas seed Whole of Khariar division 15 Indrajaba Whole of Khariar division 45 Benacher Whole of Khariar division To be fixed Bankulthi Whole of Khariar division To be fixed Basil Whole of Khariar division To be fixed Detailed Revised Target Range wise to be fixed shortly and communicated. DFO, Khariar.

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Annexure 5 Major centers of NTFP production and Marketing in Bolangir

Name of the Place Block Items Chudapalli Bolangir Mahua Flower and Seed, Sal Seed Bolangir Bolangir Mahua Flower and Seed Bhutiarbahal Bolangir Sal Seed Deogan Deogan Mahua Flower and Seed, Sal Seed Tusra Gudvela Mahua Flower and Seed, Hill Brooms Jamut Gudvela Sal Seed Gudvela Gudvela Sal Seed, Bamboo Saintala Saintala Mahua Flower and Seed Karamtala Saintala Sal Seed Tikarpara Saintala Sal Seed Titilagarh Titilagarh Mahua Flower and Seed, Sal Seed Muribahal Muribahal Sal Seed Gudighat Muribahal Sal Seed Chalki Muribahal Sal Seed Sindhekela Bangomunda Sal Seed Tureikela Tureikela Mahua Flower and Seed Mahulphat Tureikela Mahua Flower and Seed Badabanki Tureikela Sal Seed Kantabanji Tureikela Sal Seed, Kusum Seeds, Bamboo, Tamarind, Char Gharguli Belpada Mahua Flower and Seed, Char Belpada Belpada Sal Seed Dhumavata Belpada Sal Seed Gambhari Belpada Sal Seed Lathore Khaprakhol Sal Seed, Char, Kusum Seeds, Bamboo, Tamarind Phulkimunda Khaprakhol Sal Seed Rengali Khaprakhol Sal Seed, Harra, Hill Brooms, Siali Leaves Harishankar Khaprakhol Harra, Hill Brooms, Sail Leaves, Bamboo Dhandamunda Khaprakhol Sal Seed Luhasingha Khaprakhol Sal Seed Jogimunda Patnagarh Sal Seed Larambha Patnagarh Sal Seed

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ANNEXURE 6 POSSIBLE BENEFIT TO KL PLUCKERS THROUGH SHARE OF ROYALTY EARNED BY THE GOO IN BALANGIR KENDU LEAVE CIRCLE (BALANGIR, KALAHANDI, NOWRANGPUR, AND SMALL PARTS OF KORAPUT AND BARAGARH DISTRICTS) Sl No

Year Collection of KL in the state

Collection of KL (qtls.) in the region

Wages paid to KL pluckers

Royalty earned by GoO(total) in Rs. lakhs

Proportionate royalty for the region(Rs. lakhs)*

50% of royalty(Rs. lakhs)

1 1993-94 498000 212061 1178 6395 2723.15 1361.58 2 1994-95 491000 211798 1180 6575 2836.20 1418.10 3 1995-96 386000 170590 1142 4947 2186.29 1093.15 4 1996-97 511000 216508 1438 5378 2278.63 1139.32

Average over last four years

471500 202739 1235 5824 2506.07 1253.03

Average amount earned by a KL plucker HH (approximation) at current wage rates* (1995-96)

1500

Approximate number off HH involved in KL collectors in the Region

82300

(Average total wages paid/average earning per HH from KL collection)

Annual income increase for each average HH if GOO shares only 50% of the royalty with the KL pluckers

1522.52

Average capital investment required to provide the same income to average HH (under IRDP or other poverty alleviation programmes) assuming a return on investment of 15%**

10150.13

Total investment in the region required for giving the level of income provided by sharing royalty with the KL Pluckers

8353.56

* The figures are an approximation, arrived at the basis of an village level study carried out by Nabakrishna Choudhary Centre for Development Studies, Bhubaneswar** This amount doesn't include the establishment costs the various leakages and inefficiencies associated with poverty alleviation programmes. It should be treated as equivalent to the subsidy part of such programmes, as the bank credit components carry their own cost of 12%plus (including the transaction cost for the borrowers)

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Annexure 6 (contd..)

Socioeconomic status of KL Pluckers (NCCDS Bhubaneswar) - illustrative information from two villages in Bolangir and Angul Districts

No of Households Sl no.

Annual Income per HH(Rs)

No. of KL plucking HHs

Percentage of total KL plucking HHs

SC ST Others

1 Below Rs.10000 95 64.6% 19 49 23 2 Rs.10000-15000 33 22.4% 2 16 15 3 Rs.15000-20000 11 7.5% 1 2 8 4 Above Rs. 20000 8 5.4% 3 5 Total 147 100.0% 22 70 51 15.0% 47.6% 34.7%

The share of royalty of the region would be higher than projected as the KL produced in the area is of a higher quality fetching a higher price for the GOO.

Annexure 7 Various Types of NTFPs Collected for Consumption and Use (local names) Leafy Vegetables Mushrooms Tubers Fibres Bamboo Kata Koked Kanjer Kuler Faean Kankod Kachel Dhaee Luthuru

Bhiden Balseria Bhudomahalad Banjhi Putu Mada Ashwinamahal Titee Majurdima Huddila Patra Purda Nati Madhua Binua

Pita Batala Putulu Kasa Bensara Sua Sikul Shandha Kulia Kio Chhin Cherenga Belia Banta Falur Sin

Shial Hanuman Laha Thapa Laha Patal Kumuda Laha Barda Laha Narangi Laha Petmuri Dhen Dheni Bajramuli

Katang Saleng Banjhi Bhalu

References 1. District Handbook of Bolangir 2. A Decade of Forestry in Orissa, by the Forest Department of Orissa 3. A Comparative Study of NTFPs in Orissa and Neighboring states by Rajeev Singh for

Vasundhara 4. District Statistical Handbook, Bolangir 5. Non-Timber Forest Products: A Policy Analysis; Committee for Protection of Natural Resources,

Orissa, 1996. 6. Procurement and Marketing of Kendu Leaves in Orissa: A Study of Economic Deprivation and

benefits to Primary Collectors.

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Kharlikani Village, Bolangir District Economic category based on Wealth ranking

Total no. of HHs

Total no. of Sample HHs

Caste groups

1. Good 5 3 Kulta, Brahmin and Mirdha 2. Medium 25 11 Kandha, Sahara, Keuta, Goud and Mirdha 3. Poor 102 14 All the above caste groups are represented

though the majority of families are tribals. Kandrabhatta Village, Bolangir District Economic category based on Wealth ranking

Total no. of HHs

Total no. of Sample HHs

Caste groups

1. Good 3 2 Bhuen, Majhi. 2. Medium 15 4 Bhuen, Majhi, Mallick. 3. Poor 9 2 Bhuen, Majhi, Mallick. 4. Very poor 8 4 Bhuen, Majhi, Dumlia,

Mallick. Maharajore Village, Nuapada District Category Total no. of HHs Total no. of Sampled

HHs Total land in acres

Landless 13 8 0.00 Marginal Farmer 30 14 0.01 - 2.5 Small Farmer 22 5 2.5 - 5.00 Medium Farmer 4 1 5.00 - 10.00 Big Farmer 4 3 > 10 Bhainsadadar Village, Nuapada District Category Total no. of

households Total no. of Sampled households

Total land in acres

Landless 11 4 0.00 Marginal Farmer 42 9 0.01 - 2.5 Small Farmer 29 15 2.5 - 5.00 Medium Farmer 7 4 5.00 - 10.00 Big Farmer 0 0 10

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