Odisha launches LABHA, a 100% State-funded MSP scheme for minor forest produce

Odisha government launches LABHA Yojana, a State-funded MSP scheme for minor forest produce, benefiting tribal population.

The Odisha government on January 29 announced the launch of LABHA (‘Laghu Bana Jatya Drabya Kraya’) Yojana a 100% State-funded minimum support price (MSP) scheme for minor forest produce (MFP).

The decision, which the Cabinet chaired by Chief Minister Naveen Patnaik termed historic, is likely to impact the State’s large tribal population, which numbers close to one crore or 23% of Odisha’s total population. The new scheme may help the ruling BJD make further inroads into tribal pockets and forest fringe areas.

From now on, the MSP of MFP will be determined every year by the State government. Under the scheme, a primary collector (a tribal person) will be able to sell the MFP, collected at the procurement centres by the Tribal Development Cooperative Corporation Limited of Odisha (TDCCOL), at the MSP.

Though the Tribal Cooperative Marketing Federation of India fixes the MSP for MFP, the benefits had not been reaching the beneficiaries in Odisha for several years.

“Since 99% of primary collectors are tribals and the majority of them are women, the LABHA Yojana will integrate the efforts with Mission Shakti’s Women SHGs (self help groups). These procurement centres will be managed by SHGs and any other notified agencies assisted by TDCCOL,” Roopa Roshan Sahoo, Secretary, Scheduled Castes and Scheduled Tribes Development Department, said.

Ms. Sahoo said the State government had initially earmarked ₹100 crore and the SHG or any other agency would receive 2% commission. Upon collection, the amount would be transferred as Direct Benefit Transfer (DBT) to the beneficiary’s account. Though the State government hopes to bring 30,000 tribal beneficiaries under the scheme, it’s expected that the number will soon cross one lakh.

The procurement automation system will capture the total collection of MFPs, the details of the primary collectors, and the procurement point. In accordance with the State’s ‘Vision 5T’ framework (teamwork, technology, transparency and time, leading to transformation), the procurement automation system will be using technology to ensure transparency, and will bring about greater benefits for tribal people. Moreover, for further sales, the TDCCOL will take up e-tendering, and explore value addition and processing units.