Van Dhan and Fair Prices for Forest Produce

How minimum support prices for minor forest produce and Van Dhan processing centres aim to raise tribal incomes by cutting out middlemen and adding value.

To raise incomes from forest produce, the government created support schemes.

MSP for minor forest produce

Since 2013-14, a minimum support price scheme covers dozens of minor forest products, from tamarind to honey. State agencies buy at MSP when market prices fall below it.

Van Dhan Vikas Kendras

Launched in 2018 under TRIFED, Van Dhan centres:

Group tribal collectors into self-help groups.
Provide training and equipment for processing, like making mahua products, honey packaging or tamarind paste.
Help with branding and marketing.

Why value addition matters

Selling processed products earns more than raw produce. For example, cleaned and packaged honey sells at a much higher price than raw honey.

Results

Thousands of Van Dhan centres were set up. Success varied: some groups built strong businesses; others struggled with markets and working capital.

Chhattisgarh’s approach

Chhattisgarh expanded MFP procurement significantly, becoming a leader in purchases at support prices.

The mahua business

A women's self-help group in a Van Dhan centre processes mahua flowers into laddoos and juice, selling them in city markets at many times the raw flower price.

Thinking forest produce must be sold raw

Processing and branding raise value for collectors.

Key takeaways

MSP for minor forest produce began in 2013-14.
Van Dhan centres (2018) group collectors for processing.
Value addition raises incomes.
Results vary with markets and working capital.