A Study on NTFP-related livelihood dependency and people’s perception of the commercialization potential of selected NTFP s in selected locations

of Gumla, Hazaribagh & Simdega districts of Jharkhand

February 2009

Ashis k Gharai Shreela Chakrabarti

Centre for People’s Forestry

Contents Acknowledgement 1.0. Introduction 2.0. Objective of Study 3.0. Study Area 4.0. Methodology 5.0. Major Findings & Analysis 6.0 Role of women in the context of NTFP; from collection to Marketing 7.0. Conclusion / Recommendations 8.0. List of References 9.0. List of Tables & Figures 10.0. Annexure

AKNOWLEGEMENT

We would like to acknowledge the sincere efforts of our Research Scholars Mr. Dhalu Sahu, Mr.

Kundan Kishore (Associated with JSP) and Mr. Siddharth Prasad, Mr. Saket Kumar (Associated

with GPSS), without whom the field study wouldn’t have been possible. We are also thankful for

the efforts put in by the functionaries of Jan Seva Parisad (JSP), Hazaribagh and Gramin

Punar-nirman Sahkarita Sansthan (GPSS), Gumla, especially Mr. Mithilesh and Mr. Dhananjay

respectively.

We appreciate Mr Ramlal Prasad, Secretary, JSP and Mr. Ramyatan Sahu, Secretary, GPSS,

for their immense help and support.

Our sincere thanks to Dr. D. Suryakumari, Director, Centre for People’s Forestry, Hyderabad,

for her valuable inputs and guidance.

We sincerely acknowledge the support provided by our dear colleagues at CPF during the study

period especially Mr Manish Kumar Mishra during the preparation of Questionnaires, Mr.

Poorna Chander, during analysis of data and Mr Buruslin Mento during the final draft designing.

And at the end, we must thank all those community members who provided us with valuable

information regarding NTFPs and related issues in their respective areas.

1.0. Introduction:

The state of Jharkhand lies in the eastern part of India spreading over an area of 7.97 million hectares, with a population of over 2, 69, 09,428. Out of this total population, 28% belong to the scheduled tribes (around 31 different tribes) and 12% are from scheduled caste communities. A vast majority of these people live in or near forests, eking out a living based on NTFP s and subsistence agriculture.

About 29% of Jharkhand is under forest cover. The total forested area, (about 2.3 million hectares) has been divided into Reserve forests (4,387 sq. km) Protected forests (19,184.78 sq km) and Un-classed forests (33.49 sq km). The forest area per person in the state is 0.10 sq. km which is greater than the national status of 0.08 sq. km per person. Jharkhand literally means ‘forest region’ where forests play a central role in the economic, cultural and socio-political systems and the entire lives and livelihoods of a majority of the people revolve around forests and forestry. Forest based livelihoods mainly revolve around collection, processing and utilization/selling of various NTFPs throughout the year along with some seasonal subsistence agriculture in the forest fringe areas. Livelihood enhancement interventions for any of these communities, thus has to begin with a thorough understanding of the types, amounts, availability and processing/storage/marketing methods of the major NTFPs in their region. Also, the same NTFP might have different issues/constraints and market dynamics associated with it in different regions. So, it is important to analyse NTFP related issues not only at the state/regional level, but also at micro-level i.e. at village/cluster levels to get a clear understanding of the issues, the value chain and the potential for commercialization and income enhancement. 2.0. Objective of Study: The primary objective of this perception study was to understand the NTFP related livelihood dependency in the selected areas and people’s perception of the commercialization potential for selected NTFPs at the village/cluster level in three forest divisions in Jharkhand (Hazaribagh, Gumla, Simdega), where CPF proposes to initiate projects in future. All the NTFPs available in each area were studied but the main analysis is based on four major NTFPs i.e. Mahua, Lac, Karanj and Chironjee. Detailed value chain analyses of NTFPs are beyond the scope of this study. Given the limited time & resources available for the study, only a perception study has been attempted. The current study report is the primary research output of this study and is meant for use by CPF as a decision – support document to evaluate the potential for NTFP related interventions in the 3 forest divisions in three districts of Hazaribagh, Simdega, Gumla. 3.0. Study Area There are 26 forest divisions in Jharkhand, out of which 15 study locations in seven forest ranges in three forest divisions of Hazaribagh East, Simdega & Gumla were chosen for the current study.

Selected villages:- 5 villages of Hazaribagh district (Mandu & Daru Ranges), 5 villages of Gumla district (Sisai & Basia Ranges) and 5 villages from Simdega District (Jaldega, Kolebira & Bano Ranges). The villages selected for the survey were Lasod, Sariya, Chichikhurd, Khurandih and Tasnalo in Hazaribagh district, Adharma, Karimati, Kalhatoli, Kolamdega, Shikoda–Raikada in Simdega district and

Kemtatoli, Pantha, Okhaba, Merengbera, and Surajpur in the Gumla district. 4.0. Methodology Data Collection Methods: Data Collection was mainly done through household surveys, focus group discussions and collation of secondary data. Collection of primary data was mainly through questionnaires used for interviewing households of forest-dependent communities & small traders involved in dealing with selected NTFP s at different stages (production, collection, processing, storage, transport & sale). Focus was on amount of each NTFP available, source and distribution, seasonal patterns, proportion of household income currently obtained from NTFP s, the importance of NTFP commercialization to household income enhancement, access to information and barriers to entry into NTFP trade, etc. Sample size was approximately 30% of total no of households in each village. Criteria for selection of villages was that there should be a distance of 8-10 kms between two study villages to cover a larger area in each division and to cover different NTFPs in different areas. Household surveys: Each village was visited and members of every third household were contacted to conduct the survey. Door to door visits were made. The survey was conducted in the format given in Annexure – I. Besides, the household survey, the small traders were also contacted and the survey of small traders was conducted in format given in Annexure – II. Secondary sources of data collection were maps, range-wise reports, legal & policy instruments, market reports etc

Data Analysis Methods After data collection and organization, an analysis of all questionnaires, maps, range-wise reports, legal & policy instruments, market reports etc was carried out to arrive at a clear picture of the dynamics surrounding each of the selected NTFP s in the selected villages. Secondary data analyzed mainly consisted of brief reports on each of the selected forest divisions & forest dependent communities in the study area, including relevant government schemes & NTFP related policies operative in these areas. Market report for each NTFP product in each of the selected forest divisions - the current overall marketing chain for the product, from primary collectors to identified markets was also analyzed using predominantly qualitative data with some quantitative aspects. 5.0. Major Findings & Analysis General Findings:

• All the three districts (fifteen villages in seven forest ranges) surveyed, show similar patterns of house-hold occupation, but in-case of Hazaribagh, there are more households which are traditionally dependent on agriculture and thus people are more dependent on income from agriculture and agricultural labor than from NTFP. Besides, forest land has been cleared to make way for agricultural land and thus NTFP availability has also reduced.

• Wherever primary occupation of men is agriculture, primary occupation of women is

cited as housewife, by the respondents themselves. In such cases, showing the secondary occupation of women along with the primary occupation of men gives the complete household income pattern.

• Average percentage of annual income from NTFP in the villages surveyed is in the

range of 10%-31%, with that of the five villages in Hazaribagh in the range of 10%-12%. In Gumla, the range is 16%- 26%, while that in Simdega is comparatively higher – 16% -31%.

Table1: Average percentage of annual income from NTFP Collection

S.No. District

Village Name Average Percentage Income_NTFP

1 Simdega Adharma 312 Hazaribagh Chichikhurda 123 Simdega Kalhatoli 234 Simdega Karimati 165 Gumla Kemtatoli 166 Hazaribagh Khurandi 107 Simdega Kolamdega 208 Hazaribagh Lasod 129 Gumla Merengbera 2310 Gumla Okba (Titirtoli) 16

11 Gumla Pantha 2612 Hazaribagh Sariya 1113 Simdega Shikoda raikada 2914 Gumla Surajpur 2015 Hazaribagh Tasnalo 11 Average percentage of all villages surveyed taken together 16

Figure 1: Occupational Pattern in Study Areas in Hazaribagh District

• Out of the four NTFPs selected for the current study, in Hazaribagh only two items (Karanj and Mahua) are collected, whereas two of the other major NTFP items (Lac and Chironjee) are not collected by any of the households as the resources have reduced drastically. Out of the 143 household surveyed, 20 households never go for NTFP collection.

• Various reasons behind communities not inclined towards NTFP collection in Hazaribagh, are a) reducing resources b) traditionally agrarian households c) lack of cooperation from Forest Department etc.

• Simdega has many NTFP resources but lack of proper market and infrastructure for processing various items, makes NTFP related livelihoods less profitable

Agriculture Labor & NTFP

Labour

Others

Exclusively Agriculture

1%Others

10%Labour

22%Exclusively Agriculture

Agriculture Labour NTFP Collection 67%

Hazaribagh District Household Occupation

Figure 2: Occupational Pattern in Study Areas in Gumla District

• In Gumla, nearly half of the households surveyed were found to be involved in agriculture and the rest are marginal farmers, who engage themselves in NTFP collection.

Gumla District Household Occupation

Exclusively Agriculture49%

Agriculture & NTFP collectors 50%

Others 1% Labour

0%

Exclusively AgricultureLabour Others Agriculture & NTFP

Figure 3: Occupational Pattern in Study Areas in Simdega District

• Simdega district is rich in NTFP resources and almost all the household surveyed are involved in NTFP collection along with agriculture and allied activities

Simdega District Household Occupation

Agriculture & NTFP collection 97%

Others3%

Labour0%

Agriculture & Labour0%

Agriculture & NTFP

Labour Others Agriculture & Labour

NTFP Related Findings: • In Jharkhand there is no legal definition of Minor Forest Produce, however Part III

Chapter XV of Bihar Forest Rules defines Bamboo, Sabai grass, Kendu leaves etc. as Minor Forest Produce. [ Institute of Forest Productivity, 2008]

• The four major NTFPs which were taken into consideration are Karanj, Chironjee, Lac

and Mahua. Out of these four items, only Lac is collected during winter and rest all are all collected in summer

• Out of the four main NTFPs studied, there is no problem with storage & processing of

Chironjee and Lac. Storage of Karanj has its problems with pest infestation and degradation due to weather. But the maximum storage problems are associated with Mahua.- pests, weather, lack of storage facilities & money required, leakage, lack of knowledge on storage mechanisms etc. (Annexure III)

• It is evident that for most of the households, processing of Mahua involves problems with

weather-related degradation, animal attacks, long time taken, the fruits becoming sour and hence unusable, lack of money & space for processing and lack of knowledge on processing (Annexure IV)

• On an average, 16% of total household income in the villages studied comes from

collection, value addition and sale of NTFP s. In the five villages studied in Hazaribagh district, the average percentage household income from NTFP is 11% - considerably less than those in Gumla (20%) and Simdega (24%) districts. (Table1)

• Additional income from sale of value added NTFP s reveals interesting facts. Mahua

generates maximum income followed by Karanj and Chironjee where as Lac on the other hand generates almost nothing and is not represented in the chart below.(Figure 4)

Figure 4: Additional income from Sale of Value Added NTFP s

Additional income generated per Year (Rs)

4230

9772

200 92 13 300

4136

27 450

17450

50

3800 4400

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Karanj Mahua Chirounji Mahua Mahua Karanj Mahua Mahua Karanj Mahua Karanj Mahua Mahua

Chichikhurda Kalhatoli Karimati Khurandi Kolamdega Lasod Sariya Tasnalo

• Mahua is widely collected across all of these studied villages for which they spend on an average of 23 days in the summer season. During this period they collect an average of 2264 kgs of Mahua per village.

• More than 85% of Mahua collected is used in making alcohol and thus storage of raw

and processed material becomes a huge problem. Oil extraction from Mahua is not widely practiced.

• Problems in value addition is seen only incase of Mahua, which becomes sour if left

untreated for a longer period.

• Value addition is done only for Mahua and Karanj (with Karanj they prepare pickle). As Mahua is used for preparing wine, they generally use a specially designed indigenous machine for this purpose.

• There are a few house holds which have incurred a certain amount of cost to do value

addition but interestingly it has not generated any additional income (mostly incase of Mahua), which shows that these above house holds are using the processed product for self consumption.

• The collectors who are inclined to sell the collected items at a suitable price get in touch

with small traders through personal contacts and establish good business rapport to run the show in a regular basis. They visit the market around once a week during the peak season where transaction takes place on a mutually agreed price quote. Of course fluctuation of market price which is quite a regular affair affects quantity that is being sold and the profit/loss.

Gender segregated chart of NTFP collection

17%

37%46% Both Men &Women

Exclusively Men

Exclusively Women

• The above chart shows that, women play a very important role in collection of NTFP.

Here, taking all the NTFPs that are being collected in all the house hold surveyed into consideration, it was found that around 83% (46% + 37%) of women are involved in NTFP collection.

Selected NTFP item wise data: Chironjee:

• It is the seed of Buchanania lanzan, an evergreen species grows up to 15 meters • The fruit is known as Char and tastes sweet • Out of the three districts Chironjee is available in Gumla and Simdega • Generally fruits are collected, Deseeding is done after drying, then it is used for

consumption and also sold at a price of about Rs 100/- per kg • Used as sweetener and of some medicinal use

Chironjee is collected for 26 days on an average, during summer season. Table 2 shows that the villages like Kalhatoli and Shikoda -Raigada of Simdega district collect highest amount of Chironjee, ie; 578 kg and 160 kg respectively.

Table2: No. of collection days and amount of Chironjee collection in the study areas

Village Name Season Average Days_Per Season

_Village wise Total Collection in Kgs Adharma Summer 21 1227Chichikhurda Summer 8 700Kalhatoli Summer 26 1392Karimati Summer 27 375Kemtatoli Summer 32 3211Khurandi Summer 6 900Kolamdega Summer 23 255Lasod Summer 10 1000Merengbera Summer 24 1025

Okba (Titirtoli) Summer 26 540Pantha Summer 26 600Sariya Summer 4 400Shikoda raikada Summer 19 340Surajpur Summer 21 370

Average of all the villages =

20 Total Quantity collected =

12335 Kgs Karanj:

• Mostly found in Gumla and less abundant in Hazaribagh • Botanical name is Pongamia pinnata • Seeds are collected and de-seeding is done • Oil extraction is done but not at the village level due to lack of machinery • Sticks are used as tooth brush • Villagers sell seeds directly to small traders at a cost of Rs 7/- to Rs 8/- • Under barter system seed is exchanged for oil

Table 3: No. of collection days and amount of Karanj collection in the study areas

Village Name Season Average Days_Per Season

_Village wise Total Collection

in Kgs Adharma Summer 20 82 Kalhatoli Summer 24 578 Karimati Summer 20 11 Kemtatoli Summer 21 46 Kolamdega Summer 18 19 Pantha Summer 45 8 Shikoda raikada Summer 39 160 Surajpur Summer 23 16

Average of all the villages = 26

Total Quantity collected = 12335 Kgs

Lac:

• Lac is one of the few non-timber forest produces that depend both on plants as well as some organisms for their production and development

• It is the encrusted secretion of an insect Laccifer lacca. • Its available mostly in Simdega district • The traditional practice of Lac extraction is followed here • Sometimes insects needed for lac cultivation are procured from market at about

Rs 120/- • Lac is sold at around Rs 100/- to Rs 120/- per kg • End use as : Traditional Ornaments

Table 4: No. of collection days and amount of Lac collection in the study areas

Village Name Season Average Days_Per

Season _Village wise Total Collection in

Kgs Adharma Winter 30 220 Kalhatoli Winter 32 1105 Karimati Winter 38 565 Kemtatoli Winter 30 40 Kolamdega Winter 36 483 Merengbera Winter 43 793 Okba (Titirtoli) Winter 41 710 Pantha Winter 45 405 Shikoda raikada Winter 31 1612 Surajpur Winter 33 350

Average of all the villages = 36

Total Quantity Collected = 6283 Kgs

Mahua:

• Mahua (Madhuca indica) is a medium to large sized deciduous tree found both inside forest and fringe areas

• Mostly available in Simdega district • Major problem in collection is that the area affected by Naxalite activities • Proper market doesn’t exist • Price/kg in Simdega Rs 4/- to Rs 5/-and Rs 7/- to Rs 8/- in Gumla • Oil extraction from Mahua is not practiced • Mostly wine is prepared from dried Mahua flowers using an indigenous technique • Wine is for self consumption as it is considered as a traditional drink and they also sell in

bottles. The cost of a bottle at the local market is around Rs 12/- where as the same costs around Rs 20/- to Rs 25/- in the urban market

• End use : Food, Fodder and Medicinal

Table 5: No. of collection days and amount of Mahua collection in the study areas

Village Name Season

Average Days_Per Season _Village

wise Total Collection in Kgs Adharma Summer 30 3161 Chichikhurda Summer 20 2200 Kalhatoli Summer 29 3697 Karimati Summer 32 2465 Kemtatoli Summer 33 1825

Khurandi Summer 12 2906 Kolamdega Summer 30 1969 Lasod Summer 14 3510 Merengbera Summer 33 1876 Okba (Titirtoli) Summer 30 2595 Pantha Summer 40 1693 Sariya Summer 10 1700 Shikoda raikada Summer 30 2145 Surajpur Summer 33 1111 Tasnalo Summer 12 1100

Average of all villages = 23

Total Quantity Collected = 33953 Kgs

Issues related to value addition of NTFPs: Out of the four items studied Mahua generates maximum income after value-addition, followed by Karanj. Collectors from Simdega and Gumla districts use value addition techniques but due to lack of proper market, they resort to selling the items only to a few small traders they know through personal contacts. They also suffer losses due to unpredictable fluctuations of market price and are at the mercy of those traders.

Table 6: Major problems in Value Addition of NTFPs

Village Name

item Who does

(M-Men, W-

Women)

Becomes Sour

Leakage Lack of Resources /

Knowledge & Money

Inadequate drying space & scope for exposure to

sunlight Chichikhurda Mahua W 3 NA NA NAKhurandi Mahua W 21 NA NA NALasod Karanj W NA NA 2 NA Mahua W/M NA NA 8 NASariya Karanj W NA NA NA 1 Mahua W/M NA 2 6 1Tasnalo Mahua W 9 NA NA NA Total 33 2 16 2

It is evident from the table above, that for most of the households, processing of Mahua involves problems with weather-related degradation, animal attacks, long time taken, the fruits becoming sour and hence unusable, lack of money & space for processing and lack of knowledge on processing. Value addition is not done for Lac or Chironjee. With Karanj, the only value addition is preparation of pickles (hence the problems with drying), and with Mahua wine is prepared.

Table 7: Village wise Additional income from Value Addition

Village Name item Additional income generated (Rs) Chichikhurda Karanj 4230 Mahua 9772Kalhatoli Chirounji 200 Mahua 92Karimati Mahua 13Khurandi Karanj 300 Mahua 4136Kolamdega Mahua 27Lasod Karanj 450 Mahua 17450Sariya Karanj 50 Mahua 3800Tasnalo Mahua 4400

However, even with the little value addition they do, these households can get some additional income, especially from Mahua. However, even though oil extraction from Mahua is not practiced here, just preparing wine with an indigenous machine provides a lot more additional income than all other NTFPs. There are a few house holds who have incurred a certain amount of cost to do value addition but interestingly it has not generated any additional income (mostly in case of Mahua), which shows that these above house holds are using the processed product for self consumption.

Issues related to marketing of NTFPs The most important factors that affect the NTFP marketing are regular price fluctuation and availability of resources, which makes the business so unpredictable.

Figure 5: Marketing of NTFP – Village-wise & Overall

Market Information

0

50

100

150

200

250

300

Adha

rma

Chichik

hurda

Kalha

toli

Karim

ati

Kemtatol

i

Khur

andi

Kolam

dega

Laso

d

Sariy

a

Sura

jpur

Tasn

alo

Grand

Total

Marketing is not doneOthersMiddlemenSelling to Small Traders

The NTFP collectors who are inclined to sell the collected items at a suitable price get

in touch with small traders through personal contacts and establish good business rapport to run

the show on a regular basis. They visit the market around once a week during the peak season where transaction takes place on a mutually agreed price quote. Of course fluctuation of market price which is quite a regular affair affects quantity that is being sold and the profit/loss. Table 8 shows the dependence of NTFP collectors on small traders, for pricing and marketing of their products. Where products are not sold to anyone, it is assumed that they are used for consumption by the household or within the community. Table 8: No. of Households per village selling NTFP items to Small Traders / Middlemen/ Others or not marketing products Village Name

Small Traders

Middlemen Others Marketing is not done

Adharma 10 Chichikhurda 55 Kalhatoli 24 Karimati 13 Kemtatoli 14 Khurandi 55 4 Kolamdega 4 Lasod 35 Sariya 17 3 1 1 Surajpur 7 Tasnalo 17 Total 251 3 1 5

Most important problems associated with marketing of NTFPs are price fluctuation, being paid much less than the actual market value, in general prices are too low, availability of products everywhere in the same season drives the market further down, lack of resources like transport, manpower, sudden rainfall reduces demand and also disrupts the market.(Annexure V) Issues related to transportation of NTFPs Transport is one of the most crucial factors which decide the fortune of NTFP trade. In Jharkhand, lack of proper roads and transport facility in the rural areas affects the trade. In the villages surveyed, the major mode of transport is cycle (84%) which has a direct impact on the NTFP trading as it is difficult to use cycles for this purpose, especially when the distance to the market is long. About 12% of NTFP is transported through head-loading and only 3% is carried by automobile (van).(Table 9) Table 9: Mode of transport used for bringing NTFP items to markets/selling points Village Name By Van Cycle

Cycle / Headload Headload NA Total

Adharma 29 29 Chichikhurda 18 48 18 2 86 Kalhatoli 48 14 62

Karimati 22 8 30 Kemtatoli 26 2 2 30 Khurandi 4 48 9 5 66 Kolamdega 23 23 Lasod 111 20 131 Merengbera 27 2 29 Okba (Titirtoli) 27 5 32 Pantha 27 27 Sariya 13 23 2 38 Shikoda raikada 31 31 Surajpur 21 21 Tasnalo 40 5 45 Grand Total 22 541 31 77 9 680

Perspectives of Small Traders engaged in NTFP trade Thirteen traders from six villages were interviewed for this study. They were from both Simdega and Gumla but no traders from Hazaribagh could be interviewed. 80% of these traders have more than 15 yrs of experience in NTFP trading. Out of the 13 traders 10 are involved in agriculture as additional livelihood option, two are exclusively into NTFP trading and one has a general grocer’s .shop The major criteria behind selection of items for trading, is quantity available and quality of the products vis-à-vis the market price that they can fetch. NTFP collectors come to the traders to sell and and sometimes traders go to the collectors directly for procuring material. During peak season, NTFP products are procured by them 3-5 times a month. Each trader covers around 35-40 villages for procurement of NTFP s. Most of the traders (60% of those interviewed, feel that this this business is highly unpredictable /uncertain and cannot be depended upon as a sole means of livelihood. The average market price per kg of Mahua is Rs. 10-12, Karanj - Rs.6-7, Lac - Rs 120 and Chironjee -Rs.100-120. Traders purchase some processed/value added products (only Karanj & Mahua in the study area). A price comparison shows that an unprocessed kg of Mahua is procured at Rs 5/- but the processed one at Rs 11-14/- kg. Unprocessed Karanj is being procured at a price of Rs 8/- per kg and the processed Karanj is procured at Rs 28/- to Rs 32/- per kg (Table10)

Table 10: Price Comparison of Processed v/s Un-processed products procured by Small Traders

Trader Item Unprocessed

Price/Unit(Rs/Kg) Processed

Price/Unit(Rs/Kg)

01 Karanj 8 32 02 Karanj 8 30 03 Karanj, 7 30 03 Mahua 6 12 04 Karanj 5 28 04 Mahua 5 11 05 Mahua 5 8 08 Mahua 5 11 10 Mahua 5 14 11 Mahua 5 14 13 Mahua 5 12

6.0 Role of women in the context of NTFPs; from collection to Marketing Women play a vital role in the context of NTFPs. Right from the stage of collection, processing, value addition, transport till its marketing. In each of the stages of NTFP trade women’s involvement is quite significant. Among the NTFPs which were selected for the study, only Mahua is found in considerable amount in the villages selected for the study. The collection of Mahua fruits/flower is done in the summer season, mainly by women members of the family as the male members are engaged in other activities like labour, agriculture, etc. Women generally travel an average of 2 to 3 kms to collect Mahua, after which fruits are sun dried. This is also done by the female members of the family. The dried Mahua flower is either sold directly or processed to make liquor again by the women members of the family. The marketing though, as it was found is done by male members of the family. Women also play an important role in the collection of Kendu leaves (Diospyros melanoxylon). They not only collect the kendu leaves but also make bundles of 50/100 leaves and sell it in the market. They also make leaf plates from these leaves and sell those at the market. Thus, women play active role in collection as well as in marketing of Kendu leaves. Karanj is also available in good amount in local forest. The local women are involved in the collection of Karanj which are then dried and seeds are squeezed to get oil. The entire process from collection to selling of oil is done mainly by women. Chironjee (Buchanania lauzan) which are found in very small amount are also collected by some households. Female members of these households are mainly involved in collection and selling of Chironjee. Thus, it can be said that in the villages where study was conducted, women are actively involved in the collection, processing and marketing of NTFPs. 7.0. Conclusion / Recommendations It is evident from the above findings that forest fringe villages in the selected study areas are not solely dependent on NTFP collection, processing & selling. Most of them, especially in Hazaribagh district are engaged in agriculture and allied activities, with NTFP collection being mostly a subsidiary occupation. In Simdega district, which unlike the areas surveyed in hazaribagh has a denser / richer forest cover, NTFP collection assumes more importance in the lives of forest fringe communities. The areas surveyed in Gumla have a fair mix of both activities

– neither mostly agrarian like Hazaribagh, nor mostly dependent on NTFP collection like in Simdega. In all fifteen villages, across seven forest ranges, the NTFP collectors were not aware of value addition techniques other than making wine from Mahua and pickle from Karanj. Oil extraction for commercial purposes is not done due to lack of resources, lack of knowledge and in most cases due to lack of interest. Most of the NTFPs are collected and sold when their seasons arrive, without much effort towards value addition or even storing for future sale. A large part of the NTFPs collected are utilized within households or bartered in exchange for other goods, usually within the communities. Organized commercialization of these products, are apparently not in tune with the needs and cultural orientation of the communities studied. The general trend is to earn their livelihoods from agriculture, seasonal agriculture labour and migration to other industrial areas for work. NTFP collection is viewed as more of a cultural need and for earning some extra money during the high seasons. In this scenario, interventions for livelihood enhancement of forest fringe communities should include activities like soil & moisture enhancement, crop diversification, support for rural craftsmanship and local artisans etc. NTFP based enterprises should form only a part of such an integrated livelihood approach. Issues related to transportation of NTFP products, price fixing by small traders and businessmen, lack of facilities for storage and processing – all contribute to the general lack of interest in commercialization of NTFPs. These need to be addressed first, in case any NTFP based livelihood interventions are planned in this area. 8.0. List of References:

1. Upadhaya. S, April 2004 “Legal Review and Analysis for Forest Sector Analyses in Jharkhand, India” Unpublished.

2. Mishra P.C., Gupta. H.S., 2002, “Non wood forest produce in village economy: Studies

in Chotonagpur” retrieved from http://www.jhaenvis.nic.in/nwfpve.htm on January 20, 2009.

3. RCDC, Orissa 2008, Market Information on NTFPs. Retrieved on May 6, 2008 from,

http://www.banajata.org/m/local_market.html

4. Bhattacharya, A., June 2008, Indian Institute of Natural Resins and Gums, Ranchi.[Personal Interaction]

5. State of Forest Report, 2005, Forest Survey Of India, Dehradun, Retrieved on

September 17, 2008 from (http://www.fsi.nic.in/sfr2005/Chapter%208/Jharkhand.pdf)

6. Banajata, 2008. Policies on NTFPs In Jharkhand. Retrieved from (www.banajata.org/ntfp_policies/jharkhand) on August 10, 2008

7. Vasundhara, 2002. NTFP Profile Series I-IV-VI-IX; Vasundhara

9.0. List of Tables & Figures List of Tables:

1. Average percentage of annual income from NTFP Collection

2. No. of collection days and amount of Chironjee collection in the study areas

3. No. of collection days and amount of Karanj collection in the study areas

4. No. of collection days and amount of Lac collection in the study areas

5. No. of collection days and amount of Mahua collection in the study areas

6. Major problems in Value Addition of NTFPs

7. Village wise Additional income from Value Addition

8. No. of Households per village selling NTFP items to Small Traders / Middlemen/ Others or not marketing products

9. Mode of transport used for bringing NTFP items to markets/selling points

10. Price Comparison of Processed v/s Un-processed products procured by Small

Traders

List of Figures:

1. Occupational Pattern in Study Areas in Hazaribagh District

2. Occupational Pattern in Study Areas in Gumla District

3. Occupational Pattern in Study Areas in Simdega District

4. Additional income from Sale of Value Added NTFP s

5. Marketing of NTFP – Village-wise & Overall

10.0. Annexure Annexure1:

VILLAGE LEVEL QUESTIONNAIRE Name of the interviewer: Date of Interview: ________________________________________________________________________ General Information:

1. Name of the respondent: 2. Name of the Village/hamlet: 3. Name of the Block/Mandal: 4. Household size: Large/Small/Medium 5. No. of male/female/Children:

Male Female Children

6. Primary occupation of Household: 7. Total monthly household income: 8. Percentage of household income obtained from NTFP: _____________________________________________________________________

Collection:

9. Which are NTFPs s/he collects and in which time/season of the year?

S. no

Items Season How many hours a day

Days per season Summer Winter rainy

10. How far s/he goes to collect and Methods of extraction (For each item):

Sl no

Items How far s/he walks to collect

Who else in the family goes with

Time taken to reach

Methods of extraction/harvesting

Major Problems in collection. (Distance/Reducing Resources/Problems with FD/any other)

11. After collection how are the items used?

Item Household Consumption (qty)

Selling (qty)

Storage:

12. Whether storage is done, if yes, why and which items?

Items Quantity (unit)

Stored for (Days)

Season Major problems in storage

Additional cost incurred

Processing:

13. Whether processing is done, if yes, why and which items?

Items Why s/he does processing

Quantity Time taken for processing

Other resources used for processing

Major problems in processing

14. How processing is done for each item? Value addition:

15. Whether value addition is done or not, if yes, why?

Items Quantity Time taken

for value addition

Individually/ in group

Cost incurred

Major problems in Value addition

How much additional income it provides

16. How value addition is done? Transport:

17. Where s/he transports the items to sell?

Items Mode of transport Quantity transported at a time

Distance being transported

Cost involved

Major problems in transport

Market Information:

18. Where is the market? How far? 19. Whom does s/he sell the items?

a) Small trader b) Middle man c) Any other

22. How does s/he identify the potential buyer? a) Personal contacts b) From fellow sellers c) Any other source

23. How often they go to sell in the market? 24. Price Information:

Item Unit of selling (kg/any other)

Current Price/unit Quantity sold at a time

Major problems in marketing

Annexure II QUESTIONNAIRE FOR THE SMALL TRADERS Name of the interviewer: Date of interview:

1. Name of the respondent: 2. Name of the village/hamlet he belongs to: 3. Since when he has been involved in this trade: 4. Any other profession he is involved in:

5. Criteria of selecting items for trading:

6. Where he goes to buy?

7. He goes to the collector or the collectors come to him or both ways? 8. How often in a month/week?

Trading: (Season, Items, Quantity and Price)

Item Season Unit

of trade

Price/unit Qty he buys at a time

Total qty per season

Reasons of fluctuation in price

9. How does he fix prices, grade (within the items) and keep a track of the prevailing

market price? 10. To whom he sells? How he identifies them?

11. How much of area (no. of villages) he covers? 12. What are the modes of transport and the cost involved?

13. Does he need to store or process items, if yes, why and the cost involved?

Processed and Value added items: 14. Does he trade with processed or value added items? What’s the price difference?

Items Unprocessed Price/ Unit

Processed Price/Unit

Raw items (Price)

Value added items(Price)

15. His opinion about collectors and major problems in NTFP trading:

Annexure III

Storage: Major Problems – Household-wise

Village Name

item Pest & Weather

Space Lack of Knowledge

Lack of container / ingredients

Leakage Money

Adharma Chirounji

Karanj Lac Mahua 4 1 2 Chichikhurda

Karanj

Mahua 3 10 2 Kalhatoli Chirounj

i

Karanj Lac Mahua 17 Karimati Chirounj

i

Karanj Lac Mahua 11 Kemtatoli Chirounj

i

Karanj Lac Mahua 7 1 Khurandi Karanj 1 Mahua 23 1 Kolamdega Chirounj

i

Karanj Lac Mahua 5 1 Lasod Mahua 6 8 2 14 2 Merengbera Karanj Lac Mahua 3 2 Okba (Titirtoli)

Karanj

Lac Mahua 8 Pantha Karanj Lac Mahua 6 3 Sariya Karanj 1 Mahua 11 1 2 1 Shikoda raikada

Chirounji

Karanj Lac Mahua 6 1 Surajpur Karanj Lac Mahua 1 2 Tasnalo Mahua 11 Grand Total

89 9 3 14 62 3

Annexure IV Processing _Major Problems

Village Name

Items Weather/Animal & Time taken

Becomes Sour

Lack of Space

Lack of Source/ Knowledge/ Money

Adharma Chirounji

Karanj

Lac

Mahua 7

Chichikhurda

Karanj

Mahua 20

Kalhatoli Chirounji

Karanj

Lac

Mahua 16

Karimati Chirounji

Karanj 1

Lac 1

Mahua 6

Kemtatoli Chirounji

Karanj 2

Lac

Mahua 5

Khurandi Karanj

Mahua 26

Kolamdega

Chirounji

Karanj

Lac

Mahua 4

Lasod Karan 3

j

Mahua 1 4 6

Merengbera

Karanj

Lac

Mahua 10

Okba (Titirtoli)

Karanj

Lac

Mahua 10

Pantha Chirounji

Karanj

Lac

Mahua 9

Sariya Karanj 2

Mahua 2 2 3

Shikoda raikada

Chirounji

Karanj

Lac

Mahua 8

Surajpur Chirounji

Karanj

Lac

Mahua 6

Tasnalo Mahua 7

Grand Total 86 59 2 14

Annexure V Major Problems in Marketing of NTFPs

Village Name

NTFP Not Getting Proper

rate/Price Fluctuation

Low Price Widespread availability of

the same product in the same season

Lack of resources

Sudden rain fall disrupts

the market

Adharma Chirounji 5 1 Karanj 6 1 3 Lac 1 1 1 Mahua 6 1 3 Chichikhurda Karanj 6 Mahua 18 Kalhatoli Chirounji 4 4 2 2 Karanj 6 6 1 3 Lac 6 6 1 2 Mahua 8 7 2 3 Karimati Chirounji 1 Karanj 1 7 Lac 3 5 Mahua 3 7 Kemtatoli Chirounji 7 Karanj 12

Lac 1 Mahua 10 Khurandi Karanj 2 Mahua 19 Kolamdega Chirounji 2 Karanj 6 Lac 5 Mahua 1 9 Lasod Karanj 1 Mahua 3 10 20 Merengbera Karanj 9 Lac 8 Mahua 12 Okba (Titirtoli) Karanj 3 6 Lac 4 6 Mahua 5 8 Pantha Chirounji 2 Karanj 9 Lac 7 Mahua 10 Sariya Karanj 2 Mahua 6 2 Shikoda raikada Chirounji 1 3 1 Karanj 6 1

Lac 2 6 1 Mahua 1 8 1 Surajpur Chirounji 2 Karanj 7 Lac 5 Mahua 6 1 Tasnalo Mahua 1 3 4

Annexure VI

Perspective of Local NGO JSP - Hazaribagh on the constraints of NTFP development in Hazariibagh

1. Trading monopolies The gradual nationalization of NTFP trading systems has created a system in which primary collectors are bound to sell their collections to government-appointed or authorized agents. The system was created with the intention of eliminating middlemen from the trade of these products, so that a greater share of the revenue realized from the trade could be passed to primary collector. But replacing a free trade system with one in which there is only a single buyer has created its own adverse effects. There is little or no impetus to increase profits or to redistribute returns from share. The Acts also prevent processing of NTFP by primary collectors and the sale of value added products. 2. Procurement and sale prices Procurement prices differ from district to district, and seemingly have no scientific basis for their determination. Committees have rarely reduced prices of any items, irrespective of levels of marketability or demand. Also of interest is the import and export of items to a state due to price differentials in adjoining States. 3. Timing, seasonality, collection centers Following nationalization, government agencies or designated private parties take up collection and marketing for the entire State or specified areas. But this does not force them to collect from all the forest areas of the leases zone. They are often selective regarding areas of exploitation and the establishment of collection centres. Many areas of potential remain untapped. Some commercially valuable products remain uncollected and the state loses revenue because the payment of royalty is often on the basis of actual collection. Similarly, a lessee, especially when it is a government organization, will limit the timing of collection, or prescribe the condition in which the produce is to be purchased, to reduce overhead costs. 4. Arbitrary and ad hoc leasing systems Leasing system of the government is also full of questions. The extraction of many products are leased out for some years, and then discontinued without any scientific justification or investigation as to the impact of extraction of the flora. 5. Product markets, industries, subsidies Higher demand for NTFPs can improve price paid, ultimately benefiting the extractors. Growth of NTFP- using industries has the potential to boost production and collection from forests. Due to the nature of the products and the lack of a supporting forest policy, the development of NTFP- using industries is not satisfactory; indeed most Kendu leaves, sal seeds, mahua flowers and mahua seeds are exported out of state. Rebates in excise duty and sales tax, along with a system of subsidies at the initial stages of industry establishment, could get things moving

Annexure VII Value addition The function is largely performed by market intermediaries and manufacturers and there is little value addition at the primary collector’s level. The simplest from of value addition is storage drying, cleaning, sorting and grading are also simple functions usually carried out by traders. Who derive a significant markup for these services. Processing is carried out by collectors, traders and manufacturers. Collectors and specialized artisans often undertake simple processing such as rope making from certain grasses, bark (Mahulan fiber) or basket weaving from bamboo. However, the value addition for these activities is rarely substantial particularly if marketing is done by some one else. For most NTFP there is scope for adding value, individually or collectively at the primary collector level. Understanding the market and realistically assessing costs for different value addition stages are important in order to determine where the most effective interventions can be made to increase benefits to collectors. Constraints of Marketing Efficiency Efficiency aspect in any study would reveal how well the activity is being performed. A market is said to be efficient when the producer’s share is high and involves less marketing costs. But it is also found that producer’s share is low while the margin of intermediaries and marketing costs are high meaning there by a less efficient market. An attempt has been made to find out the constraints, which affect the marketing efficiency of the study area. The following constraints were identified while conducting the study. 1. Absence of direct contact with the consumer: NTFP is one of the unorganized activities facing so many problems of marketing. The collectors have no organized mechanisms to establish direct contact with the consumers. The time at their disposal and poor financial background do not permit them to concentrate on marketing activities. Another important factor that prohibits the collectors to establish direct contact with the consumer is the mode of consumption of crop. Various NTFP can not be used as such. It need to be processed to prepare the final product and collectors are not in a position to establish processing units so the collectors are solely dependent on the traders and wholesalers to get their produce marketed. 2. Less holding capacity of the grower. All the collectors in the study area were poor farmers, land less labourers predominantly tribals who were always in dearth of money. They generally dispose off their produce shortly after the collection to meet their immediate consumption needs. Another reason for quick disposal of the produce is the perishable nature of NTFPs. Thus they are at the mercy in the hand of traders who have an effective control over price. 3. Malpractices performed by the middleman NWFP in South Bihar is mostly under the control of middlemen. The NTFP market is well established with long chain of intermediaries. The traders in the periodic market operate through commission agent who are given the definite rate at which to purchase and are also given advance money. The commission agent travels the village from door to door and purchases at a price, which is much below the market price. But the price charged to the consumer is much higher than the producer-selling price, so there is wide margin between the price paid by the ultimate consumers which goes in the hands of the middle men. Although the intermediaries perform a number of market function, they often take the major share of the value of the product with the collectors getting only a small share of the final price. .

4. Another constants found in the marketing of NTFP is lack of grading facilities. There is no standard means to grade the raw NTFP in to superior and inferior qualities. Traders generally purchase the raw NTFP in bulk irrespective of the quality. So the collectors selling superior quality of raw NTFP get the same price as that of the inferior quality materials. 5. Less bargaining capacity The collectors who are engaged in the profession are mostly illiterate. The trader misleads them by foul means. They do not possess the capacity to bargain. The price that the traders offer is readily accepted by them as they are always in dearth of money. Had they been literate they would have fetched more price for their products. 6. Perishable products:- These products such as Aaonla, Wild Mushrooms follow a different path, mainly because of their limited availability and perishable nature. Due to this short of nature puts a constraint on the collectors. Distress selling trends take place due to the low bargaining power of collectors and poor access to transport facilities. The price variation in different markets is also governed by the socioeconomic composition of consumers. 7. Extractive Nature Private trade is by and large exploitative in nature with scant regard for regeneration or sustainability by harvesting. Almost no investment is made in studying or regenerating any NTFP items. Primary collectors who are paid by ‘piece rate’ also do not pay attention to this aspect. 8. Uncertainty of markets NTFP markets are uncertain as new substitutes are being developed rapidly. Market uncertainty could be illustrated taking an example of Malaysia where the market for a certain NTFP which was managed to produce synthetic gum was crashed as a alternative product came to market and the same could be said about Lac in India. Thus a multiple product mix (Keeping subsistence and cash needs of the community in mind) rather than dependence on one or two products is more likely to be sustainable in the long run. This will also facilitate periodic harvesting of different products in different seasons at low sustainable level.