community led forest based enterprise (cfe) policy trajectories in odisha & ofsdp experiences
TRANSCRIPT
Community Led Forest Based Enterprise (CFE) Policy Trajectories in Odisha
Contribution of Bilateral Project in Mainstreaming & Strengthening CFE -‐ Case of OFSDP
• Largest number of forest fringe villages (29,302) in the country (57% of the total villages)
• Over 80% of forest dwellers depend enDrely on NTFP in the state;17% landless depend mainly on NTFP collecDon and 39% people are involved in NTFP collecDon as a subsidiary occupaDon (Negi, 1993)
• >60 % of the households in its tribal areas, depend on forests for incomes ranging from 15% to 50% every year. (Vasundhara, 2005)
• About 1/4th of the total income of a forest-‐fringe household in Orissa comes from NTFP collecDon. (OFSSP, 2006)
Odisha & NTFP High Dependence. High availability
Policy Contexts Legal & Institutional Framework
1. Post-‐independent Policy Regime, pre-‐2000 • Limited Space of CFE
2. NTFP Deregulation in Odisha • Opened the Space….Absence of Enabling
3. Influence of JICA-‐Policy (2nd Generation Forestry Projects in India) on CFE
• Fund, Partnerships and Flexibilities brought in Innovation and Handholding …but new challenges came up…
4. Policy Gaps and Challenges
• State Control • Orissa Forest Produce (Control of Trade) Act, 1981, state monopoly for
control and regulaDon of trade in NTFP • Leases to industry/traders/Contractors (Utkal Forest Product Ltd – lease of
29 items for 10 years 1989-‐99)
• Bamboo : Industry as Labour Contractor – 1989-‐2000; OFDC since 2000
• Sal Seed : OFDC & TDCC -‐ 1983-‐1995 and a^er 2000; Leases to Oil mills during1995-‐2000
• Other NTFPs • Till 1985; leases to TDCC, AMCS & OFC who used to act as renDers • 1985–2000 : lease to private parDes and industries • State-‐ or district-‐level commi`ee fixed the price for each item • 1949 -‐2000 in Phulbani lease to AMCS , Tikabali
Pre-‐NTFP deregula6on : State Control Space for Contractors, Industries, Coopera6ves
• Policy guideline in 2000 • DenaDonalizaion of 68 NTFPs • Ownership rights to the Panchayat; Transport and trade under PRI
• Three types of NTFP (about 85 in nos) • 69 deregulated NTFP (with Sal seed; highest no among Indian states) • Na6onalised produces like Kendu leaves & bamboo are directly controlled by
Govt. • Lease-‐barred items : Sal leaves, gums, resins and barks of different trees,
Neither put to free trade nor are kept under control of GPs, as collecDon of these items considered to have adverse impact on the sustainability of species and forest.
• Orissa Gram Panchayats (Minor Forest Produce Administra6on) Rules 2002 : • GP shall have the power to regulate procurement and trading of MFP
NTFP-‐Deregula6on
• Change in Collec6on Basket : % of household engaged in NTFP collecDon increased for 11 important NTFPs where as it has reduced for 8.
• Limited Awareness : Awareness that trader should not buy less than the prescribed Minimum Procurement Price was 11 percent
• Increase in Price : Prices of all the NTFP at the primary collector’s level increased
• Con6nua6on of Tricks of Trade : DeregulaDon of NTFPs has hardly brought any significant changes in the age old terms of trade
• Marginal improvement in Value of addi6on of sleected NTFPs
• Higher involvement of women SHGs in NTFP business: A large number of such groups across the state started NTFP based micro enterprises – ORMAS/NGO
DeregulaDon Impacts : Mushrooming of CFE OFSSP Study, 2006
• Crea6on of Market
• UFPL contributed to Sal Seed use discovery in 80s
• Export of Siali Buffet Plates, bamboo handicra^s (ORUPA)
• Value Addi6on :
• Siali leaf plate, hill-‐broom, tamarind deseeding in 60s & 70s (AMCS, Tikabali )
• Siali/Sal leaf plate sDtching, moulding; bamboo handicra^s (ORMAS, TRIFED)
• InnovaDve Processing :Bamboo ply, Tamarind powder (OFSSP Pilot
• Collec6viza6on & Coopera6za6on
• NTFP Coopera6ves (Ama Sangathan, PRADAN, Vasundhara)
• Producer Companies around NTFP/Medicinal Plants: (RCDC (Mri6ka), EDI, Sambandh
• Innova6ons • Adibasi Bazar Commi`ee (MART-‐OTELP)
• Cluster and Value Chain Studies : (MSME Founda6on, Traidcra[ UK, UNIDO)
• OFSDP Clusters
Policy, Market & Ins6tu6on Triggers
Odisha Forestry Sector Development Project (www.ofsdp.org; 2006-‐15)
• Funded by JBIC/JICA – Rs 8 billion
• Society Mode of Implementation with a Collaborative Implementation Framework – CSO, Consultants, Professional Agencies
• Implemented through JFMC and SHG in 2426 villages in 10 districts
• About 2 lakh ha forest treatments, biodiversity conservation in PA, Mangrove regeneration and Farm Forestry
• Integrated Participatory Projects : Microplanning, EPA, IGA, LLI-‐BHN
• Strategic Integration of Convergence, integration of GIS and MIS, Research
JICA Focus on Livelihoods 2nd Generation Projects
• Livelihoods promotion of Forest-‐dependent Communities and Process-‐based, Flexible approach with Multi-‐stakeholder involvement of Projects lead OFSDP to Adopt a Different IGA
• Twin-‐Objectives : Healthy Forest & Wealthy Communities • RF at VSS level, managed by JFMC – Community-‐lead Microfinance • Market-‐based approach with VCA, Market Research & Information Access • Demand-‐based collective promotion through 3600 enabling • Cross Learning and Convergence • Pioneer experimentation around Clusters • Partnering with Professional IGASA • Institutionalized Market linkage – tie ups with Private Sector • Business Approach : 5 year Plan, Quality Control • Infrastructure support – CFC • Internal and external convergence
Wider Coverage More than 7000 SHG; More Than 20,000 Loans
(2008-‐14)
2,015 2,359 2,990 3,492 3,735 4,501 4,974
5,515 5,676 5,990 6,353 6,816 7,002 7,037 7,245 2,461 3,032
3,947 4,697 5,115
6,486 7,536
8,860 9,741 10,657
12,229 14,588
16,989 18,160 20,331
-‐
5,000
10,000
15,000
20,000
25,000
30,000
Jul-‐10 Dec-‐10 Mar-‐11 Jun-‐11 Sep-‐11 Dec-‐11 Mar-‐12 01-‐Jun Sep-‐12 Dec-‐12 Mar-‐13 Jun-‐13 Sep-‐13 Dec-‐13 Apr-‐14
No of Recipients No of loans
Investment in RF > Rs 50 Crore
Repayment encouraging
562
478 438
366
287 234 205 183
151 126 97 87 72 52 40 33
315 254
220 173
116 110 100 89 66 48 42 37 30 19 13 10
Amount of Loan Linked Vs Repaid (In Million Rupees)
Loan Amt Repayment Amt
Cluster (group of SHG) Microenterprise
• 81 Clusters with more than 11,000 members from 1039 SHG (481 VSS);
• 16 types of commodities
• 75% of the clusters NTFP-‐based; Tamarind -‐20 clusters, siali leaf -‐ 14 and Mahua – 9, Sal leaf -‐8 and hill broom – 6
• Total amount invested Rs 40.58 million (RF support RS 28.31 million)
• Profit reported Rs 10.18 million (25% return over investment)
• Clusters reported more than 3 cycles
Cluster Price vis-‐à-‐vis MSP 2014
NTFP Products GoI Rate in Rs/kg OFSDP-‐Cluster marketed rate in Rs/kg
Mahua 22 24 Sal Seed 10 10 Sal leaf 21 14 Char 100 110 Harida
11
20.5 Bahada 15.5 Amla 43.25
Tamarind 22 22
(deseeded rate Rs 45-‐47/kg)
IGA Policy-‐Framework IGA Approach Focus
Revolving Funds at Village level, managed by JFMC
Community managed microfinance
Income Generation Economic Inclusion
Focus on Forest dependent, Poor & Weak WSHG
Social Inclusion
From Norming, Handholding, Capacity Building, RF-‐support, BDS & Market Linkage
Integration/ Holistic
Linked to EPA & ANR & Convergence Internalization
Enabling demand-‐driven & informed choices, Value Chain Approach , Market Information
Market & Information
Cluster/ Producer Company, Formalization (PAN, TIN etc.) Institutionalized Linkage, CFC-‐
Infrastructure
Institutionalization & Infrastructure
Policy Challenges • Culture Vs Economics
• Different value system of tribal/forest fringe communities
• Limited inclination for profiteering and risk taking
• Nature of Commodity • Limitation of NTFP as a commodity: seasonality, market transparency and
development (monopolistic, product diversity, quality)
• Limited success, examples and institutional experiences • Organically & Socio-‐economically not tuned to Economy of Scale
• Bridging the Gap of Hand-‐holders • Lack of qualitative Rural market support Agencies and adequate supply of HR
• Supply Chain Vs Value Chain Professionals • Limited knowledge pool on product and market dynamics • Right compensation and incentive
Policy Gaps • Limitation of some NTFP
• Conflicts of a Forester : Lease barred NTFP • Overcoming Excise Barrier : Mahua
• Scheme of MSP for MFP • Exclusion of Protected Areas • Excluded Products : Restricted Items (?) Lac, Gum, Sal
leaves, nationalized items (Bamboo, KL)
• Promotional Gaps • Promoting use of Green Products viz. Leaf plates • Subsidy/incentives for Green consumption/marketing • Proactive linking of Institutions, market and entrepreneurs • Taxation/VAT/Excise exemptions
25 July 2013 19
Tamarind Cluster
No of Clusters-‐ 20 /VSS-‐111 /SHGs-‐221
Loan amt from RF: Rs 107.78 lakhs
SHGs Own Contribution: Rs 10.03 lakhs
Total Investment: Rs117.82 lakhs
Total quantity mobilized: 7643.45 quintal
BC Duration: 3CYCLES (4-‐6 month in each cycle)
Profit : Rs. 40.14 lakhs
Intervention Areas
De-‐Seeding
Quality Standardization
Skill Training (De-‐seed)
Branding (four clusters)
Trade Agreement with Clusters