1

LAYOUT A

PROJECT TEAM

2

Manoj Kumar Jain

Sr. Advisor, Economic Sector

IGG

Dr. Swati Chauhan

Sunil Kumar

R. Parasuram

Director General

IGG

Rahul Choudhari

Principal Advisor, Economic Sector

IGG

UNDER THE GUIDANCE OF

RESEARCH PROJECT COORDINATOR

RESEARCH ASSOCIATE

DATA VISUALIZER

3

TABLE OF CONTENTS

Abbreviations 06

Preface 07

Acknowledgement 08

Executive Summary 09

Key Areas of Improvement 14

How to Use this Report 15

1. Introduction 16

2. Research Methodology 23

263. Facts and Findings

584. Conclusion

625. Recommendations

666. References

7. Annexure 68

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LIST OF TABLES

Table 1 : Type of NTFPs 19

Table 2 : Sheopur district highlight 21

Table 3 : Sampling Plan 24

Table 4 : Financial Gains to Beneficiaries 37

Table 5 : Details on Training, Capacity Building & Exposure Visit 40

Table 6 : Usefulness of the Scheme 49

Table 7 : List of Villages 69

Table 8 : Survey Response Rate 69

Table 9 : Literacy Rate 70

Table 10 : Age of Beneficiaries 70

Table 11 : Awareness on State Rural Livelihood Mission and NTFP Scheme 70

Table 12 : Awareness Level on Working of Producer Company 71

Table 13 : Awareness on Past Six Month Activities of Producer Company 71

Table 14 : Awareness on Marketing Process - CLs 71

Table 15 : Changes in Average Income of CLs & NTFP Collectors 72

Table 16 : Awareness on Marketing Activities - CRPs 72

Table 17 : Benefit Perception of BoDs with Producer Company 72

Table 18 : Awareness of Marketing Linkages - BoDs 73

Table 19 : Awareness on Turnover and Profitability of the Company - BoDs 73

Table 20 : Organisational Information about the Producer Company 73

Table 21 : Descriptive Statistics Quantity of NTFPs 74

Table 22 : Paired Samples Test Statistics of NTFPs 74

Table 23 : Descriptive Statistics of Prices of NTFPs 75

Table 24 : Paired Samples Test Statistics of Prices of NTFPs 75

Table 25 : Descriptive Statistics of Quantity of NTFPs 76

Table 26 : Paired Samples Test Statistics of Quantity of NTFPs 76

Table 27 : Descriptive Statistics of Prices of NTFPs 77

Table 28 : Paired Samples Test Statistics of Prices of NTFPs 77

Table 29 : Financial Ratios, Definitions and Formula 78

Table 30 : Financial Ratio Analysis of Producer Company 79

Table 31 : Awareness of Marketing Process - BoDs 80

Table 32 : Funds Provided by ADS for Working Capital and Operational Expenses 80

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LIST OF FIGURES

21Figure 1 : Sheopur District

32Figure 11 : Understanding on Value Addition Process

27Figure 2 : Sources of Livelihood in Karahal Block

33Figure 12 : Awareness on Producer Company and its Structure - CLs

27Figure 3 : Sources of Livelihood in Vijaypur Block

34Figure 13 : Assessment of Capacity Building of CRPs

28Figure 4 : Association with SHGs

37Figure 14 : Awareness about Governing Structure – BoDs

29Figure 5 : Change in Sustainable Harvesting Practices

41Figure 15 : Organizational Structure of the Company

30Figure 6 : Awareness on Value Addition Process of NTFPs

42Figure 16 : Business Model of the Producer Company

30Figure 7 : Understanding on Record Keeping

56Figure 17 : Responses of Beneficiaries on Extension of Project

30Figure 8 : Maintenance of Receipt

56Figure 18 : Responses of Beneficiaries on Replication of Project

31Figure 9 : Reason for Non-maintenance the Receipt

32Figure 10 : Awareness on Sustainable Harvesting Practices - CLs

6

ABBREVIATIONS

ATR Acid-Test Ratio

FI Field Investigator

NTEP Non-Timber Forest Produce

CR Current Ratio

LRP Lead Resource Person

PRP Project Resource Person

BOD Board of Director

GR Gross Ratio

NW Net Worth

CRP Community Resource Person

MORD Ministry of Rural Development

PVTG Particularly Vulnerable Tribal Group

CBO Community-Based Organizations

IGG Atal Bihari Vajpayee Institute of Good Governance and Policy Analysis

PC Producer Company

DER Debt-Equity Ratio

NCR Net Capital Ratio

SGSY Swarnajayanti Gram Swarojgar Yojna

ECR Equity Capital Ratio

NPTA Net Profit to Total Asset Ratio

SMLVPCPL Sahariya Mahila Laghu Vanopaj Producer Company Private Limited

TS Total Sales Turnover

CL Community Leader

LATA Liquid Asset to Total Asset Ratio

PG Producer Group

ECR Efficiency Capital Ratio

NPOF Net Profit to Own Fund Ratio

SHG Self Help Group

TSA Technical Support Agency

FAOF Fixed Assets to Owned Funds Ratio

NRLM National Rural Livelihoods Mission

TLOF Total Liabilities to Owned Funds Ratio

WCT Working Capital Turnover

7

PREFACE

Madhya Pradesh (MP) is the second largest state by area (308.245 sq. km.) and fifth largest state by population (7.27 crores) in India. According to the 2011 census data, it has the largest tribal population (1.53 crores) in India. The two prominent scheduled tribes (STs) are Bhil and Gonds, (72% of the total tribal population) in the state. In addition to these two, four other STs are Kol, Korku, Sahariya and Baiga, which makes it 92.2% of the total ST population in the State1 .

MP is divided into six cultural zones that are Baghelkhand, Bundelkhand, Malwa, Nimar, Central Madhya Pradesh and Mahakaushal. Mahakaushal and Nimar have a vast presence of STs and Other backward castes (OBCs) in the rest of the zones. These facts about the state reveals that, it becomes challenging to bring the tribal population into mainstream economic development due to the vast area and size. Therefore, the tribal population has been largely cut-off from the economic growth of the state.

MP has rich and diverse forest resources, and the significant tribal population is dependent on these natural resources. Non-Timber Forest Produce (NTFP) is a key output of these forest resources, which is the primary source of the livelihoods for STs. Besides, NTFPs have a massive demand in the global medicinal market. In recent times, the demand for herbal medicines has increased all over the world. It has created a potential economic opportunity for NTFPs collectors, mainly STs. Sheopur district has a huge potential of NTFPs production. Therefore, Madhya Pradesh State Rural Livelihoods Mission (MPSRLM)

has funded a project for Sustainable Livelihoods Enhancement through NTFPs particularly for the primitive vulnerable tribal group (PVTG) – ‘Sahariyas’ in Sheopur district. An organization named ‘Access Development Services’ has proposed the project and implemented as the Technical Support Agency (TSA) for MPSRLM.

MPSRLM has requested to Atal Bihari Vajpayee Institute of Good Governance and Policy Analysis (IGG) for the evaluation of this project. The findings of the study provide inputs to MPSRLM and other stakeholders for decision making to improve the functioning of this project and the situation of such kind of activities. A core team of professionals has planned, organized and executed the research study along with IGG. The study finds that training and capacity building on sustainable harvesting of NTFPs have significantly changed the life of beneficiaries of Karahal and Vijaypur blocks. The stakeholders of this project have benefitted from this initiative and have a sense of ownership towards their producer company. The study has reported a few challenges which require the attention of MPSRLM. The study has given several recommendations for the revival and better functioning of the project.

With sincere gratitude, the study team would like and acknowledge everyone who gave their insights and experience especially senior officers, administration & finance staff, field investigators of IGG, SPM (MED) of MPSRLM, all employees of the producer company, all stakeholders of this study, beneficiaries and researchers.

1 Madhya Pradesh, Data highlights: The Scheduled Tribes, Census of India, 2011.

Rahul Choudhari

Principal Advisor, Economic Sector

8

ACKNOWLEDGEMENT

The project team takes this opportunity with much pleasure to thank all the people who have helped through this research journey and producing the report. I sincerely thank Mr. R. Parasuram, Director General, IGG for his empathetic support, resources, help

and guidance as and when required for completion of this study. I express my gratitude to Mr. Rahul Choudhari, Principal Advisor, Centre for Economic Sector, IGG for his inputs, suggestions and providing support to make this phase one assessment research fruitful.

I also thank Mr. L. M. Belwal, CEO, Mr. Raman Wadhwa, Deputy CEO, Mrs. Garima Saisundarma, SPM (MED), MP-DAY-SRLM, Bhopal for their continuous support and suggestions in research design, training and fieldwork to make the assessment of this fruitful project. I also thank to Dr. Sohan Krishan Mudgal, DPM, MP-DAY-SRLM, Sheopur for providing extended support in organizing field visits of RAs during field testing and all members of selected sampled villages. I also thank the whole team of MP-DAY-SRLM who supported the fieldwork in the selected blocks.

I wish to express our gratitude to Dr. Swati Singh Chauhan, Research Associate for her support in conducting the study, Mr. Sunil Kumar for infographics designing of the report and all FIs of IGG who were the investigators in this assessment and evaluation study.

Finally, let the team seize this opportunity to express the sincere gratitude to all the respondents of the survey and Focus Group Discussions (FGDs), without their responses it would not have been possible to conduct the study. I express my gratitude to the all women of Self Help Groups (SHGs), Producer Groups (PGs), Community Resource Person (CRP), Lead Resource Persons (LRPs) and Board of Directors (BoDs), CEO, Accountant and all staff of Sahariya Mahila Laghu Vanopaj Producer Company Private Limited (SMLVPC Pvt. Ltd.) who spared time from their everyday schedules to have conversations and interactions with us during the fieldwork, allowing us to learn from the rich tradition of wisdom which they possess.

Manoj Kumar Jain

Sr. Advisor, Economic Sector

9

EXECUTIVE SUMMARY

Ministry of Rural Development (MoRD), Government of India (GOI), has restructured and implemented Swarnajayanti Gram Swarojgar Yojna (SGSY) as National Rural Livelihoods Mission (NRLM) since fiscal year (FY) 2010-11. MP implemented it in 2012-13 as MPSRLM. The mission aims to create efficient and effective institutional platforms for the poor as a mediating institution. It promotes access of the Community Based Organizations (CBOs) to the poor for economic, financial and technical services. It enables them to diversify and improve their livelihoods. The mission also promotes job opportunities for rural youth through training in self-employment and salary/wage employment skills.

In this preview, the mission has built up a specific scheme on ‘Sustainable Livelihoods Enhancement through NTFP’ for the primitive tribal dominant district of Sheopur. It provides sustainable livelihoods opportunities for economic inclusion, which is implemented by the TSA named Access Development Services. The project has targeted 5000 women NTFP collectors of 43 villages in Karahal and Vijaypur blocks. These women are institutionalized in 250 SHGs and a producer company (SMLVPC Pvt. Ltd.). The producer company has 5000 shareholders (all women NTFP collectors) and one NTFP collection centre in each of the village.

TSA has provided training and built the capacity of women NTFP collectors in sustainable harvesting. It has also provided market exposure to them for value addition. In addition, it has trained LRPs, Vansakhi/CRPs and BoDs to operate the collection centres and the producer company.

Sheopur district is affluent in NTFPs like Aonla, Salai-Gum, Satawar, Khair-Gond, Belora, Bael etc., which are the major source of livelihood. Additionally, there are around 210 villages (approximately 39000 households) within 10 km from the forest, which is around 70% of the district’s population. Therefore, Sheopur district has substantial dependence on the forest

resources (NTFPs) for their livelihood. Nevertheless, the lack of knowledge on sustainable harvesting amongst the villagers and the exploitation of natural resources create the fear of destruction of their livelihood. Therefore, MPSRLM has funded the project for sustainable harvesting of the NTFPs. The target community under this project is the “Sahariyas” who are classified as primitive ST and have PVTG status. MPSRLM has requested to IGG for the evaluation of this two-year-old project. IGG has undertaken this study with the objectives of assessment of the capacity of all the stakeholders, functioning, sustainability and scalability of the producer company.

The study has conducted a detailed survey on the selected beneficiaries (Women NTFP collectors) of Karahal and Vijaypur blocks. It reveals that 88.03% of respondents of Karahal block and 99.14% respondents of Vijaypur block responded in the field. The study finds that 97% of women NTFP collectors of Karahal block and 92% of Vijaypur block are illiterate. Karahal block has 60% beneficiaries under the age group of 20-40 and in Vijaypur 59% in the same age group. 70% of beneficiaries are dependent on NTFPs in both the blocks for their livelihood. However, lack of awareness is the crucial issue in Vijaypur block where 54% population is not aware of the sustainable livelihood project.

Beneficiaries (women NTFP collectors) have received training on capacity building for primary processing, sustainable harvesting and value addition of NTFPs. The study observed that 72% of NTFP collectors in Vijapypur block and 100% of Karahal block have started using the separate tools for the harvesting of a different kind of NTFPs. In similar to this, 70% and 92% of NTFP collectors from Vijaypur and Karahal block respectively have stopped damaging the roots and branches of trees. Further, the project has achieved significant success in terms of bringing the NTFPs from the forest, cleaning, drying and aggregating them. In terms of value addition process, collectors

10

EXECUTIVE SUMMARY

are aware of the cleaning and drying of NTFPs but not trained on grading and proper storage of NTFPs in both the blocks.

Moreover, there is a very poor understanding of record-keeping in Vijaypur block where 92% of NTFP collectors do not maintain the record due to less knowledge about it. Though, NTFP collectors (62%) of Karahal block maintain the record and know about record keeping. In a similar vein, women NTFP collectors are aware of the existence of the producer company but not aware of the working and governing structure of it in both the blocks.

In both, the blocks, 80% CLs have satisfactory awareness about the sustainable harvesting process. However, in case of the value addition process, the results differ in both the blocks. CLs in Vijapypur block do not know value addition process (grading and sorting of NTFPs) whereas there is average knowledge about it in Karahal block. Moreover, CLs are not aware of marketing and never get any training on marketing process of NTFPs in both the blocks. Notwithstanding, CLs are aware of the existence of the producer company but not aware of the objectives, working process, functioning and governing structure of it. Beneficiaries have admitted that the producer company is beneficial for NTFP collectors and brings positive changes in their lives by providing a better price of NTFPs.

CRPs (Vansakhi) are responsible for the good collection, and quality produces in the collection centres. They regularly interact with NTFP collectors and CLs. They have an adequate understanding of sustainable harvesting process and average knowledge on primary grading of NTFPs. However, the study observes that CRPs are dissatisfied with the remuneration, received by them in return of managing the collection centres. Besides, co-ordination of CRPs with LRPs is missing in Vijaypur block. CRPs have no information on the marketing of NTFPs, but they have visited fairs in Gwalior and Bhopal to understand

the process. CRPs have admitted that changes have come in their lives due to the formation of the producer company. Now, NTFP collectors are getting a better price of NTFPs than earlier.

The study finds that LRPs are an essential link between the Producer Company and beneficiaries. LRPs handle the collection centre’s activities like availability of cash, weighing machine and other requirements. During project implantation phase, these LRPs are known as Project Resource Persons (PRPs). During discussions with LRPs, the study team finds that newly joined LRPs did not receive any training. The situation is miserable in Vijaypur block where even existing PRP (now LRP) did not receive any training. The study observes that the impact of this can be seen on the villages like Ghamloki where no LRP has visited from last one year.

BoDs are the decision-maker for all the business activities of the producer company. They have got training on the functioning, managing and decision making of the producer company. Nevertheless, 40% BoDs of Karahal block and 20% of Vijaypur block are not aware of the governing structure of the company. In terms of benefit perception from the project, BoDs of Karahal block are highly benefitted and feel proud of their association with the producer company. However, the situation is opposite in Vijaypur block. BoDs are dissatisfied with the decisions of the chief executive officer (CEO) of the producer company. They feel less involved in various activities of the producer Company, which is resulting in a lack of ownership pride among the BoDs.

Further, the quality of training received by the beneficiaries was not very effective. The study finds that beneficiaries have gone through only for two days training. The mode of training was through flip charts and posters. They have not received any field training. Most of the beneficiaries are neutral on the satisfaction level on training. In addition, beneficiaries have

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EXECUTIVE SUMMARY

given varied responses to the level of satisfaction from their exposure visits. In Karahal block 20% of NTFP collectors, 40% of CLs, 60% of CRPs and all BoDs were satisfied while 80% of NTFP collectors, 60% CLs, 40% of CRPs dissatisfied. In Vijaypur block, 60% of BoDs and all NTFP collectors have provided neutral responses for the exposure visits. Additionally, 40% of CLs and CRPs are satisfied with the exposure visits. The formation of the producer company has brought significant changes in the quality, quantity and prices of collected NTFPs. The business model of the company involves several steps. First, it procures the NTFPs from the collectors at the village based NTFP collection centres at market price. Second, LRPs collect the NTFPs from the collection centres and transfer the NTFPs from collection centres to the company’s go-down. Third, the producer company does the primary processing of NTFPs in the go-down if needed. Finally, the producer company sells them to local traders on wholesale price. This model helps NTFP collectors to sell their collected NTFPs at market price in the village only. However, lack of market linkages restricts the Producer Company to sell produce to the big traders for better price realization.

The quantity of NTFPs has decreased in Karahal block (except Salai gum) while it has increased in Vijaypur block. Nevertheless, the prices realization of NTFPs by the local community has significantly increased by more than 50% in both the blocks after the formation of the producer company. As a result of this, it has increased the income of beneficiaries and has resulted in a financial gain between the ranges of Rs 1000 to Rs 15000 annually. However, the study has found that the producer company has failed to establish any marketing linkage with the large outside traders due to the low quantity of NTFPs, which could possibly increase the extent of financial gain to the community.

The study finds that beneficiaries feel empowered after the formation of the producer company due to ownership pride.

However, illiteracy of beneficiaries is a big challenge which affects their involvement in the functioning of the producer company. The study team observes that BoDs are not much involved in the functioning of the producer company. They are involved in limited and menial operational procedure like meetings, proceedings and signature for withdrawing the money from the bank account. This group lacks the awareness on the purpose of appointing directors, article of association, and other important documents of the producer company.

The study determines that less number of beneficiaries are financially and socially empowered due to the implementation of the project. In Karahal block, 30% of NTFP collectors, 20% of CLs, 40% of CRPs, and 60% of BoDs are feeling socially empowered.

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EXECUTIVE SUMMARY

On the other hand, in Vijaypur block, only 5% of women NTFP collectors, 20% of CRPs and 20% of BoDs do feels socially empowered, but none shares this amongst the CLs. The project has provided time and efforts benefits to the beneficiaries to manage their other work. More than 70% beneficiaries in both the blocks admitted that labour time has reduced which can be utilized in other work. The study has used two-year financial statements for assessing the financial performance of the producer company with the help of standard financial ratio analysis method. The study finds that short-term liquidity position of the producer company to be satisfactory.

On the other hand, operating efficiency (turnover ratio) of the company has declined in the year 2018-19. The reason for this could be traced to change in practices adopted by the market intermediaries leading to collection volume decline at the collection centres. In addition, the company was unable to generate sufficient revenue to meet the operational expenses. It is concerning scenario to all the stakeholders that the company requires additional funds infusion to meet the basic requirements like HR salary, office expenses, even after being in operations for the third year. The company is left with little funds, and stares at operating risk in the coming years. It needs monetary and non-monetary support to overcome these challenges. It will be required to strengthen livelihood activities to diversify the earnings of the beneficiaries. In term of non-monetary support, the company requires a proper and efficient staff to carry out various functions. The company has massive potential in terms of its capacity to procure NTFPs, however, it requires augmentation of infrastructural facilities but more importantly, better marketing linkages to enhance its business value and productivity. Apart from this, there is also a strong need of continuous attempts of capacity building and training of the beneficiaries (NTFP collectors, CRPs, CLs, LRPs and BoDs) who can help the largely

illiterate stakeholders to understand the nuances of running a business operations and demands of market driven value additions in the output.

The management challenges like unrest in LRPs in relation to low remuneration, inadequate monitoring processes and relatively inexperienced CEO are leading to further mismanagement. The study felt that the organization still lacks the maturity to be run independently by the community and warrants longer management support period with more attempts to build community leadership in managing the subsequent operations. All subsequent programs roll-out with community driven producer company formation as a route, should have strongly defined assessment parameters for sunset of program support with beneficiary profile as a prime reference point in such evaluations.

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LAYOUT A

MAIN REPORT

14

KEY AREAS OF IMPROVEMENT

The current impact evaluation study of sustainable livelihood enhancement through NTFPs has provided various benefits to all the stakeholders involved in the project. However, there are several points which need to be addressed for achieving sustainability, scalability and higher outcome from the implementation of this project.

1. The illiteracy of the NTFP collectors is one of the major issues for the sustainability and scalability of the project. However, literacy of the NTFP collectors is not the key objective of the current project. But, the implementing agencies should nudge for literacy as strong criterion in the appointment of the key functionaries’ in the project. It can contribute to the more financial and social empowerment of the women NTFP collectors.

2. The NTFP collectors have got training on sustainable harvesting. However, more thorough attempts in training on cleaning, drying and aggregating process and record-keeping of NTFPs is required in both the blocks.

3. The implementing agencies should be tasked to more concreate output measures as the evaluations criteria of the training effectiveness for better learning of the beneficiaries.

4. The program needs to build training components towards building loyalties towards Producer Company and position it as a movement much beyond just a mechanism for better price realization. These components will be crucial in keeping the efforts of the group together and make the company’s operations viable. Currently the innovative practices adopted by market intermediaries in securing the collected produce are left unanswered to the peril of the organization.

5. Building product marketing linkages and maintaining them overtime is a specialized skill. The implementing

agency will be required to bridge this advance requirement by actively engaging some prominent market player from the forward linkage channels for the producer company. Current process of exposure visits and training appears short in delivering the desired requirements of the organizational sustenance.

6. The program needs to reassess the project construct for provisions related to infrastructure development. A more detailed review for requirements of storage facilities can help in alleviating some of the storage capacity related challenges faced by the community.

7. The producer company needs to have a primary processing unit for NTFPs for the future expansion plan. It will increase the monetary value of the products and provide employment opportunities to many women of both the blocks and nearby areas.

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HOW TO USE THIS REPORT

The purpose of this study is to evaluate the sustainable livelihood enhancement through NTFP scheme under MPSRLM in Sheopur district. The study has various sub-objectives such as to evaluate the capacity building of beneficiaries (NTFP collectors, CLs, CRPs, LRPs and BoDs), and financial sustainability of SMLVPC Private Limited. This report may be a useful document for MPSRLM, the policymakers, Government official working on a similar kind of projects. In addition, it is beneficial for various stakeholders such as women NTFP collectors, CRPs, CLs, LRPs, CEO of the producer company, BoDs, TSA, SHGs, VOs, CLFs, financial institutions and other resource agencies.

The report can act like a standard document for evaluating the similar type of programs by the implementing agencies (MPSRLM). Besides, the implementing agencies can refer this report to identify potential challenges to be faced by all the stakeholders to implement such kind of project. Finally, this report can assist in implementing agencies to understand sustainability and scalability of sustainable livelihood enhancement through NTFPs.

The report provides detailed methodology and analysis of the outcome for the use of the policymakers. The policymakers can look up this report as the problems faced by the various stakeholders. They can further design new policies and strategies for future projects and schemes so that similar kind of problems and challenges do not come up in the future projects. The producer company CEO, staff and employees can refer this report to understand the challenges faced by the NTFP collectors. They can better understand the financial performance of the company. Further, the CEO of the company can provide this report as a performance indicator on the financial and non-financial aspect of the producer company. The financial institutions can understand all the aspects of the producer company, which can assist the company to get the funds from the financial institutions.

The persons and agencies involved in the project can refer to this report for better understanding of training requirements and capacity building of the NTFP collectors in other or same region. They can focus on the lacunas in the training module, which may assist them to deliver the training in a much better way. This report can also identify further training requirements for the NTFP collectors and other stakeholders involved in this or similar type of projects.

The report can help all the stakeholders to understand the objective of this project better. It will provide them with the overall performance of the project so that they can identify what the project expects to form them and what have they delivered?

LAYOUT A

16

INTRODUCTION

17

INTRODUCTION

1.1 BACKGROUND OF THE PROJECT

Ministry of Rural Development (MoRD), Government of India (GOI), has restructured and implemented Swarnajayanti Gram Swarojgar Yojna (SGSY) as National Rural Livelihoods Mission (NRLM) since fiscal year (FY) 2010-11. In a similar vein, MP has implemented it as MPSRLM in the year 2012-13. The mission aims to create efficient and effective institutional platforms for the poor as a mediating institution. It promotes access of the CBOs to the poor for economic, financial and technical services. In addition, it also promotes job opportunities for rural youth through supporting, training for enhancing employment skills and self-employment.

In light of this, MPSRLM has implemented a project on ‘Sustainable Livelihoods Enhancement through NTFP’ in the primitive tribe dominant district of Sheopur. It provides sustainable livelihoods opportunities for economic inclusion. Access Development Services has implemented the project as TSA. MPSRLM has selected Sheopur district for the implementation of this project.

Sheopur district is affluent in NTFPs like Aonla, Salai-Gum, Satawar, Khair-Gond, Belora, Bael etc., which are major livelihood options. Additionally, there are around 210 villages (approximately 39000 households) within 10 km from the forest, which is around 70% of the district’s population. Therefore, Sheopur district has substantial dependence on the forest resources (NTFPs) for their livelihood. Nevertheless, the lack of knowledge on sustainable harvesting amongst the villagers and the exploitation of natural resources create the fear of destruction of their livelihood. The target community under this project is the “Sahariyas” who are classified as primitive ST and have PVTG status.

The project has targeted 5000 women NTFP collectors of 43 villages of Karahal & Vijaypur blocks in Sheopur district. These women are institutionalized in 250 SHGs and a producer company. The producer company has 5000 shareholders and

one NTFP collection centre in each of the villages. TSA has ameliorated capacity of all the beneficiaries in sustainable harvesting. Beneficiaries have also got market exposure for value addition. In addition, TSA has provided trained LRPs, Vansakhi/CRPs, CLs and BoDs to operate the collection centres and the producer company. Therefore, the objectives of the study are to assess the capacity of all the stakeholders, functioning, sustainability and scalability of the producer company.

1.2 LITERATURE REVIEW

Past studies have classified the forest resources into two main groups; timber resources and non-timber resources. Timber resources include sawlogs and pulpwood, while non-timber resources are the NTFPs (Peters, Gentary and Mendelson, 1989). NTFPs include a wide array of forest products, such as resins, bamboo, oils, latex, medicinal plants, wild fruits and vegetables. They play a vital role in sustaining rural communities living in forest fringe areas. So, NTFPs not only serve as a safety net in times of food shortage but also as a valuable source of household materials and income for people living in forest fringe areas. Arnod, Ruiz Perez and Wollenberg (1998) highlight the role of NTFPs in the lives of the local community as a mean of alleviating poverty. Few other studies also support the point of NTFPs usage for livelihood generation and poverty alleviation for the forest-dependent communities (Kar and Jacobson, 2012; Rose- Tonen and Wiersum, 2005; Shackleton and Shackleton, 2004). In addition, NTFPs are an instant and ready resource for rural healthcare security. In various countries, NTFPs also have spiritual value and cultural significance (Dosey1999; Cocks and Wiersum 2003).

Western scientific and development models consider forests as the primary source of multiple products and services. There are relevant sources of livelihood for forest based people (de Beer & McDermott, 1989; Falconer, 1990;

18

INTRODUCTION

Nepstad & Schwartzman, 1992; Plotkin & Famolare, 1992). However, Arnod, Ruiz Perez and Wollenberg (1998) have shown their doubt for forest conservation because commercial harvesting has negative ecological consequences. Later, environmentalists and social activists defended the idea that NTFPs extracted from the forest could provide an environmentally sustainable basis for livelihoods. It was due to increasing global concern about environmental, attention towards rural poverty, and the emergence of the concept of ‘sustainable development’. It led to the establishment of extractive reserves for NTFPs (rubber, Brazil nuts) in the Brazilian Amazon forest at the beginning of 1990 and similar approach throughout the tropics (Ruiz-Pe´rez & Arnold, 1996; Salafsky, Dugelby, & Terborgh, 1993).

The NTFP sector represents one of India’s largest unorganized sectors. There are around 275 million people of the country dependent on this sector directly or indirectly for their livelihoods. However, in the past, there was not much importance given to the management of NTFPs. In addition, NTFPs sector is functioning under several states and central government policies. The absence of a single policy/act related to the management and use of NTFPs has been a significant hindrance in the development of the sector. For instance, under the Section 2(4)(b) of the Indian Forest Act 1927, the extraction of medicinal plants is only regulated, but nothing has been mentioned with regards to their proper management. Apart from this policy, the individual state forest departments have developed their own legal and policy framework to address the NTFP sector. Therefore, there is a need for a specific policy to address all the issue of this sector. However, the focus has shifted now from timber to other NTFPs as the demand for medicinal plants is increasing both in the global and domestic market.

The Madhya Pradesh government has

defined Minor Forest Produce (MFP) in response to conferring of ownership rights to Panchayats and Gram Sabhas by central government through a constitutional amendment, Provisions for Panchayat (Extension to Scheduled Areas) Act, 1996. The MP government circular dated 15/05/1998 defines “MFP” as “non-timber forest produce which can be harvested on a non-destructive basis and will not include minerals and wild animals or their derivatives”. Timber and forest will have the meaning as given in the Indian Forest Act, 1927. Madhya Pradesh is the first state to nationalize an NTFP, Tendu Leave in 1964 and then followed it up with nationalizing of Harra, Sal seed, and Gums. The state let most items go from the list of specified produces and permitted free trade of them in 1986. All the produces apart from the nationalized ones are now open for a free collection, storage and trade. However, once purchased by the trader and when it is transported from a haat to any other place, a transit pass (TP) is required from concerned forest authorities.

1.3 DEFINITION AND CLASSIFICATION OF NTFPS

According to the Food and Agriculture Organisation (FAO), NTFPs refer to market or subsistence goods for human and industrial consumption derived from renewable forest resources and biomass. The government of Madhya Pradesh further elaborated the FAO terminology for use in the Indian context in the year 2000. The definition includes all MFPs which can be harvested on a non-destructive basis but does not include minerals, wild animal and their derivatives. Besides this, NTFPs are classified according to the marketing of products. Further, there are nationalized NTFPs controlled by the government and non-nationalized NTFPs (all others) controlled by the community. Therefore, there are various ways to classify the NTFPs universally. Centre of Minor Forest Produces, Dehradun, India has provided the following classification of NTFPs:

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INTRODUCTION

Table 1 : Type of NTFPs

Source: DPR

GROUP I (A) NON-TIMBER FOREST PRODUCTS OF PLANT ORIGIN

GROUP, I (B) NON-TIMBER FOREST PRODUCTS OF ANIMAL ORIGIN

1. Edible plant products 19. Honey and Beeswax

2. Medicinal plants 20. Lac and Shellac

3. Aromatic plants 21. Tusser and other silks

4. Gum and resin exuding plants 22. Insects and animals

5. Bamboos 23. Hides, Skin, Feathers

6. Canes 24. Horns, bones, shells, ivory and musk;

7. Dye and colour yielding plants

8. Fatty oil yielding plants

9. Tan yielding plants

10. Spices and condiments

11. Fibre and floss yielding plants

12. Bidi wrapper leaves

13. Fodder and forage

14. Fuelwood, charcoal and briquette making

15. Other leaves for platters, plates and bowls etc.

16. Beads for ornaments and decoration

17. Saponin yielding plants

18. Other

GROUP, I (C) NON-TIMBER PRODUCT OF MINERAL ORIGIN GROUP II SERVICES

25. Mica, sand, gravel and other minerals 26. Tourism, recreation, wildlife watching etc.

In the Indian context, all the items listed up to 21 are considered as NTFPs. Animal parts are not legally traded and hence are not considered as NTFPs.

1.4 LIVELIHOODS AND NTFPS

According to FAO, about 80 % of the population of the developing world depends on NTFPs for their primary health and special nutrition needs. Several million tribal people all over the world depend on these forest products for their sustenance

and income needs. Therefore, forest resources must have high importance to ensure sustainable management of these critical resources.

The economic development of forest dwellers is heavily dependent on NTFPs. These people live in the forest fringe areas where land is inhospitable and agricultural yield is not only low but also uncertain. NTFPs provide food, livelihood security and medicines to forest fringe

20

INTRODUCTION

dwellers. The forest fringe dwellers are dependent on traditional knowledge and use of wild medicinal herbs and shrubs for their medical ailments. Further, there is no alternative earning opportunities available to the tribal people. They look to NTFPs as a potential source of livelihood and employment. In India too, forests are an essential source of livelihood to the rural masses. It is estimated that 29 % of villages with 147 million people are located in the vicinity of the forests (FSI, 2000).

1.5 RATIONALE OF THE PROJECT

Sheopur is located in the north-western part of Madhya Pradesh and shares its border with Rajasthan and Uttar Pradesh. It is a predominantly forest-rich district, and the percentage of forest area to the total geographic area is 60%. The forests that are found in this division are mostly of Northern Tropical Dry Deciduous Forest Type. They are home to a large number of NTFPs like Salai Gond, Honey, Mahua (species), Aonla, Beheda, Gudmar, Satavar and Bael (medicinal plants). There are around 210 villages (approximately 39000 households) within 10 km from the forest, which is around 70% of the district’s population. An estimated 80% of the species available in these forests have commercial importance to the local people. In addition, 90 different varieties of NTFPs are traded in the local market. Thus, apart from agriculture, the local communities are primarily dependent on the NTFPs for their livelihoods in Sheopur district.

The target community under this project is the “Sahariyas” and has the PVTG status. Sahariyas are majorly dependent on NTFP collection for their livelihoods. They are involved in collection of NTFPs throughout the year except for three months of the monsoon season. Salai Gum which is collected from the bark of Boswellia serrata (Salai) tree is an essential NTFP for the Sahariyas. Salai trees are naturally found in abundance in the forest areas of Sheopur. However, the importance of Salai gum in

the household economy has prompted local tribals to evolve an indigenous system of tenurial right on Salai tree to prevent any chances of conflict with other collectors. In this system, the tribals have distributed the Boswellia serrata trees in the forest among themselves on a permanent basis for the collection of gum. The importance of the Salai tree in the life of a Sahariya is such that when a girl gets married, she gets Salai trees as a form of dowry. This is one reason that the Salai trees have primarily been conserved in the Sahariya dominant areas of Sheopur district. Although the district is home to several other NTFP species; but the NTFP collectors face many hardships for collecting the NTFPs. Additionally, they do not get a fair share in the NTFP value chain.

1.6 PROJECT AREA

Sheopur district of Madhya Pradesh is a predominantly forest-rich district and selected as the intervention district due to home of PVTG - Sahariyas. The project has planned the intervention for 4500 households of Karahal and Vijaypur blocks

21

INTRODUCTION

of the district. It targets the producer groups of ST (Sahariya) having the PVTG status.

Figure 1 : Sheopur District

1.7 SHEOPUR DISTRICT PROFILE

Sheopur is located at the northern part of Madhya Pradesh. The district has excellent connectivity through road & railways network. Some of the central locations are Vijaypur, Karahal and Baroda. The major tourist attraction is Palpur (Kuno) wildlife sanctuary. The well-known Kaketa reservoir is also located in this district.

As per census 2011, there are a total of 582 villages in the district; out of which, 516 are inhabited, and 66 are uninhabited. Out of 582 villages, the maximum numbers of villages (173) are in Sheopur tahsil, followed by 117 in Karahal, 106 in Vijaypur (106), 91 in Beerpur and 95 in Badoda.

Table 2 : Sheopur district highlight

TOTAL POPULATION 687,861

1. Percentage of Rural Population 84.39

2. Percentage of Urban Population 15.61

3. Percentage of Scheduled Caste 15.76

4. Percentage of Scheduled Tribe 23.47

Sex Ratio (Total) 901

1. Rural 901

2. Urban 903

Population Density (per sq. km) 104

Literacy Percentage 57.43

1. Males 69.33

2. Females 44.23

1.8 ABOUT THE STUDY

IGG has conducted the current study on the request of CEO, MPSRLM. The main objective of the study is to evaluate the impact on women NTFP collectors. In

addition, the study assesses the role and capacity building of CLs, Vansakhi (CRPs), LRPs and BoDs of the producer company along with the sustainability of the producer company.

22

INTRODUCTION

1.9 OBJECTIVE OF THE STUDY

The broad objectives of the study are:

1. To assess the capacity building of women NTPF collectors, CLs, CRPs & BoDs on sustainable harvesting.

2. To assess the capacity of BoDs after the formation of the producer company and observe changes in the business.

3. To find out the usefulness of the scheme.

• What is the extent of the contribution the individual women NTPF collectors now make in the livelihood status of the beneficiaries?

• What extents have these NTFP collection business attained sustainability?

• What further monetary and non-monetary support is required to strengthen these activities?

4. To assess the impact on increased sustainability and economic condition of the women NTFP collectors due to project implementation.

5. To identify the steps of implantation, its challenges and strategy on extension/replication of the project.

23

LAYOUT A

RESEARCH METHODOLOGY

24

RESEARCH METHODOLOGY

2.1 RESEARCH DESIGN

The current study has adopted ex post facto research design as MPSRLM has already made interventions in the field. The study used quantitative and qualitative data for assessing the impact on the beneficiaries. Quantitative data has been collected by using a structured interview schedule and qualitative data by using observations, interviews and FGDs.

2.2 SAMPLING PLAN

The objective of the study is to evaluate and assess the sustainable livelihood enhancement through NTFP scheme. MPSRLM has implemented this scheme in two blocks (Karahal and Vijaypur) of Sheopur district. IGG has decided the final

sample size in consultation with MPSRLM for the study. The study randomly selects 10 villages from each block. Further, it chooses 10 NTFP women collectors from each village randomly. Thus, a total of 200 beneficiaries are selected from all 20 villages from both the blocks for the study. Similarly, the study selects five CRPs (Vansakhi), five CLs, five BoDs and two LRPs from each block. Hence, the total other stakeholders are 34 (10 CRPs+10 CLs+10 BoDs+4 LRPs) who are part of the study. The total sample size for the study becomes 234. The study has adopted a simple random sampling method for sample selection at all three stages. Detailed sample design is present below in table 3.

DISTRICT BLOCK NO. OF VILLAGES

NO. OF WOMEN NTFP

COLLECTORS

NO. OF CLS

NO. OF CRPS (VANSAKHIS)

NO. OF BODS

NO. OF LRPS

Sheopur Karahal 10 100 5 5 5 2

Sheopur Vijaypur 10 100 5 5 5 2

Total 2 20 200 10 10 10 4

Table 3 : Sampling Plan

The study has prepared a random number table for selecting a random sample based on the literature. It has selected 10 villages from each block based on the random numbers. The details of selected villages are present in table 7 (see Annexure).

2.3 TOOLS FOR THE STUDY

The study has designed a structured interview schedule for all the beneficiaries (Women NTFP collectors), CLs, Vansakhis (CRPs), LRPs and BoDs of the projects. It has referred to a detailed project report (DPR) submitted by TSA (Access Development Service) for the project to MPSRLM. The study team has developed the interview schedules in consultation with MPSRLM.

2.4 PILOT TESTING

The study has conducted the pilot testing before finalization of the tools with the target

sample of various villages of Karahal and Vijaypur block. It includes FGDs conducted with BoDs of the Producer Company and CLs/CRPs/LRPs of the project. In addition to this, it includes individual discussions with women NTFP collectors and CRPs (Vansakhi) at Khirkhiri and Morawan villages of the Karahal block. The study has incorporated all the substantial changes of pilot study outcome into the tools.

2.5 FINALIZATION AND IMPLEMENTATION OF THE TOOLS

The study has finalized the tools after the outcome of the testing and suggestions from the core team of IGG and then administered in the field. Two qualified field investigators (FIs) are identified as per IGG norms who understand the local language and belong from the local community of Vijaypur and Karahal block for data collection.

25

RESEARCH METHODOLOGY

2.6 TRAINING OF THE FIs

IGG has organized one-day training programme for field investigator at IGG on 26th September, 2019. The trainees receive detailed information related to data collection for this project. The study team of the project has conducted the training for FIs. The study team has also designed a timeline for the data collection for timely data availability.

2.7 VALIDATION OF FIELD DATA

The study team has validated data by visiting 10 sampled villages of both the blocks. It has visited Semra, Khirkhiri, Goras, Uparikhori and Karrai villages in Karahal block and Ghamloki, Bagcha, Telipuar and Rampura villages in Vijaypur block for the validation. It has thoroughly analyzed filled questionnaires for validation of field data. Further, it has interacted with NTFP collectors for data validation and simultaneously interacted with CLs, CRPs and BoDs for the qualitative assessment of the project. It does not find any significant mistakes in the filled forms; one or two minor changes have suggested to FIs for further completion of the data collection.

2.8 DATA ANALYSIS

The study has adopted various data analysis techniques for qualitative and quantitative data. The study has analyzed the quantitative data by using various statistical tools such as descriptive statistics, frequency distribution, paired “t” test, percentage analysis and gap analysis. The study has also used charts and bar graph for presenting the facts and better understanding of data. Financial ratio analysis has been used to measure the financial sustainability of the producer company for the year 2017-18 and 2018-19. In the qualitative techniques, the report presents the analysis of the FGDs.

LAYOUT A

26

FACTS & FINDINGS

27

FACTS AND FINDINGS

The impact evaluation study of the project has undertaken from September to October 2019 in the two blocks (Karahal and Vijaypur) of Sheopur district. This study has collected the primary data through a survey by using structured interview schedules. The survey response rate is 99.14% in Vijaypur block and 88.03% in Karahal block (see Annexure - Table 8), which is higher than the response rate (85%) suggested by the US Department of Education, (2012). The formula for the survey response rate is the number of individual who responded to the survey divided by the total number of individuals for which survey is administered.

3.1 DEMOGRAPHIC ANALYSIS OF THE BENEFICIARIES

The current study has exclusively conducted for females of Sahariya tribe in both the blocks as per the objectives of the project. The study has analyzed literacy rate, age, and livelihood options under demographic analysis which are as follows:

3.1.1 LITERACY RATE AND AGE

Illiteracy is a significant issue in both districts (see Annexure - Table 9). 97% of NTFP collectors, 80% of BoDs, 40% of CRPs, and 60% of CLs are illiterate in Karahal block. Similarly, in Vijaypur block, 92% of NTFP collectors, 60% of BoDs and 60% of CLs are illiterate, and only CRPs are 100% literate.

Table 10 (Annexure) presents the age group of different stakeholders. 60% of NTFP collectors and CLs in Karahal and Viajypur blocks are in the age group of 20-40, the remaining 40% are more than 40 years. Similarly, all the CRPs (100%) in both the blocks are under the age of 40. Most

of the BoDs are also under the age of 40 years; however, no BOD is under the age of 30 years in both the blocks.

3.2 SOURCES OF LIVELIHOOD

The study finds that the primary source of livelihood is the NTFPs (70%) for the beneficiaries in both the blocks (see Figure 2 & 3).

Figure 2 : Sources of Livelihood in Karahal Block

10%

20%

70%

Karhal Block

Agricultural

Labour work

NTFP collection

Figure 3 : Sources of Livelihood in Vijaypur Block

Agricultural 5%

Animal Rearing 5%

Labour work20%

NTFP collection

70%

Vijaypur Block

Agricultural Animal Rearing

Labour work NTFP collection

Also, 20% of NTFP collectors prefer to do labour work in both blocks. It indicates that in the off-season (monsoon season), NTFP collectors do not have the choice to go for the collection of NTFPs. Therefore, they prefer to go for labour work in this period. However, agriculture is also a source of livelihood for NTFP collectors. 10% of respondents in Karahal block and 5% in Vijaypur block depend on agricultural activities for their livelihood.

Therefore, the demographic analysis presents that most of the beneficiaries are dependent on NTFPs for their livelihood and are below the age of 40 years in both the blocks. However, the illiteracy is the major issue in both the blocks.

70% of the beneficiariesprimarily depend on NTFPs for their livelihoodin both the blocks.

28

FACTS AND FINDINGS

3.3 AWARENESS AND ASSOCIATION WITH SHGs

3.3.1 AWARENESS ON STATE RURAL LIVELIHOOD MISSION AND NTFP SCHEME/PROJECT

Rural livelihood mission is targeting the development in rural areas through MPSRLM. Table 11 (Annexure) depicts that 97% of beneficiaries in Karahal block and 64% beneficiaries in Vijaypur block are aware of rural livelihood mission. Further, the study finds that 97% of beneficiaries in Karahal block and 54% in Vijaypur block are aware of the scheme.

3.3.2 ASSOCIATION WITH SHGs

SHGs are playing a vital role in the livelihood transformation of the rural poor, and this project is based on the model of SHGs/PGs. Figure 4 shows the association between beneficiaries and SHGs. It indicates that 77% and 94% of beneficiaries have an association with SHGs in Karahal and Vijaypur block, respectively.

Figure 4 : Association with SHGs

77% 94%

23%

6%

0%

20%

40%

60%

80%

100%

120%

Karhal Block Vijaypur Block

Association with SHGs

NoYes

3.4 ASSESSMENT OF CAPACITY BUILDING

Capacity building of women NTFP collectors, CLs, Vansakhis (CRPs), LRPs and BoDs, is the key deliverable of the project. TSA has trained all of them for providing sustainable livelihood to 5000 women NTFP collectors of Karahal and Vijaypur blocks. The training mainly focuses on primary grading and value addition of NTFPs for a better price in the market. The following are the evaluation and assessment of stakeholder wise capacity building task of the TSA:

3.4.1 CAPACITY BUILDING OF BENEFICIARIES (WOMEN NTFP COLLECTORS)

The foremost aim of TSA is to develop the capacity building of women NTFP collectors as they are the principal beneficiaries of this project. The study has evaluated the capacity building of women NTFP collectors on various parameters. It includes knowledge and awareness on various kinds of NTFPs, adoption of sustainable harvesting practices in the field, clarity on primary processing steps and value addition process. Other than these parameters, NTFP collectors have received training on record-keeping, the role of Producer Company and its operational/ functional issues.

3.4.1.1 KNOWLEDGE AND AWARENESS ON NTFPS

In both the blocks, all the sampled women NTFP collectors are collecting NTFPs for the last five years. Therefore, it is a significant source of livelihood for them. As per discussions with the project study team, they all are well acquainted with all kinds of NTFPs. In addition, they know the medicinal values of the NTFPs since this activity has been there from generations.

DISCUSSION WITH NTFP COLLECTORS

77% and 94% of beneficiaries have an association with SHGs in Karahal and Vijaypurblocks, respectively.

29

3.4.1.2 KNOWLEDGE AND PRACTICES ON SUSTAINABLE HARVESTING

The study has assessed the capacity building of beneficiaries by checking their knowledge and practices on sustainable harvesting process (Figure 5).

Figure 5 : Change in Sustainable Harvesting Practices

100%

95%

97%

93%

100%

66%

53.40%

12.70%

72%

69.80%

75%

68%

11%

3%

11%

2%

0% 20% 40% 60% 80% 100% 120%

Use of tools

Different tools for NTFPs

No damages to branches and fruits

No destruction of roots

Bringing the NTFPs from forest

Cleaning process of NTFPs.

Drying process of NTFPs

Aggreagtion process of NTFPs

Change in Sutainable Harvesting Process of NTFPs

Vijaypur Block

Karhal Block

It indicates the significant changes in the sustainable harvesting practices. For instance, NTFP collectors do not extract the whole root but leave some part of the root below the soil for further germination when they harvest Satawar tree.

The results point that all (100%) the women NTFP collectors are using tools for harvesting the NTFPs and applying sustainable practices in bringing the NTFPs from the forest in Karahal block. Moreover, almost all the women NTFP collectors

(more than 93%) are using different tools for harvesting different NTFPs and do not damage branches, fruits and roots of the trees. However, 66%, 53.40% and 12.70% of women NTFP collectors are applying cleaning, drying and aggregation process of NTFPs respectively in Karahal block. On the other hand, in Vijaypur block, 68% to 75% of women NTFP collectors are using different tools for harvesting NTFPs and do not damage branches, fruits and roots of the trees while harvesting. Besides, very few women NTFP collectors (2% to 12%) are applying cleaning, drying and aggregation process of NTFPs. It indicates that there is several women NTFP collectors who are using the traditional process to collect NTFPs in Vijaypur block.

The study has observed that there are differences in the sustainable practices adopted by the NTFP collectors in both the blocks. However, more number of women NTFP collectors have started using sustainable harvesting practices in Karahal block compared to Vijaypur block.

The study finds that it is hard for the beneficiaries to recall the number of days for which they have received the training. However, they have recalled a training location and venue with the help of LRPs. Therefore, there may be more training required to increase the knowledge of the beneficiaries. Furthermore, training is not a one time process it requires consistency to learn it or practice it for the adoption of new sustainable techniques. There is a need for continuous monitoring about the learned practices which are missing in this project.

FACTS AND FINDINGS

100% of women NTFP collectors are using tools for harvesting the NTFPs and applying sustainable practices in Karahal block whereas 68% to 75% of women NTFP collectors in Vijaypur block.

97% of beneficiaries in Karahal block and 64% beneficiaries in Vijaypurblock are aware of rural livelihood mission.

30

FACTS AND FINDINGS

3.4.1.3 CLARITY ON STEPS OF VALUE ADDITION CLEANING, SORTING, GRADING, DRYING, STORAGE, PROCESSING AND PACKAGING OF NTFPS

Women NTFP collectors have got training on value addition which is an essential aspect of the training and capacity building. They have received training on cleaning, sorting, grading, drying and storage of NTFPs under value addition process. Value addition has become indispensable to increase the monetary value of NTFPs in the market.

Figure 6 : Awareness on Value Addition Process of NTFPs

4

3

2

4

4

4

4

1

4

2012345

Cleaning ofNTFPs

Sorting of NTFPs

Grading ofNTFPsDrying of NTFPs

Storage of NTFPs

Awareness on Value Addition process of NTFPs

Karhal Vijaypur

The study has assessed clarity and awareness on the value addition process on the scale of 1-5; 1 is for high dissatisfaction and 5 for high satisfaction. Radar chart (Figure 6) is showing the value addition process in both the blocks. NTFP collectors of both the blocks have clarity and awareness in case of cleaning and drying the NTFPs. However, the collectors do not have clarity and awareness in terms of grading and storage of the NTFPs in Vijaypur block. Similar kind of the issue is in Karahal block in case of grading of NTFPs. Therefore, there is training required on these aspects of the value addition process to the NTFP collectors.

3.4.1.4 UNDERSTANDING OF ACCOUNTING AND RECORD-KEEPING

Record keeping is a crucial task to maintain the NTFPs selling quantity. The NTFP collectors get receipt against sales of NTFPs from village NTFP collection centres. The study finds that 100% NTFP collectors of Karahal block get the receipt from the collection centres and 67% maintain the receipt for the future record (see Figure 7 & 8).

Figure 7 : Understanding on Record Keeping

0% 0%

100%

0%0% 0%

0%

100%

0%

20%

40%

60%

80%

100%

120%

Printed card Simple Copy Receipt frmcollection centre

Do not maintain

Understanding on Recod keeping

Vijaypur

Karhal

Figure 8 : Maintenance of Receipt

67%

33%

0%

100%

0%

20%

40%

60%

80%

100%

120%

Yes No

Mintenance of Receipt

Karhal Vijaypur

However, none of the NTFP collectors keeps the record and does not maintain the collection centre’s receipts in Vijaypur block. In addition, the study has found the

Clarity and awarenessare present amongst the NTFP collectors in case of cleaning and drying of NTFPs in both the blocks.

67% of NTFP collectors keep the receiptreceived from NTFP collection centre for their future record in Karahalblock and none in Vijaypur block.

31

FACTS AND FINDINGS

reason for not maintaining the receipt received from the village NTFP collection centre (see Figure 9). It indicates that illiteracy of NTFP collectors is the primary reason for not maintaining the record in both the blocks. However, in Karahal block, 40% of the women NTFP collectors have argued about the training on record keeping.

Figure 9 : Reason for Non-maintenance the Receipt

60%

0%

40%

90%

0%

10%

0%

20%

40%

60%

80%

100%

Illiterate No Knowledge ofrecords

No training onthis

Reasons of not maintaining the Receipt

Vijaypur

Karhal

Illiteracy of the NTFP collectors is the primary reason behind notkeeping the NTFP collection centre receipt.

3.4.1.5 KNOWLEDGE ABOUT WORKING AND OWNERSHIP OF PRODUCER COMPANY

NTFP collectors have a major challenge of selling the NTFPs at the fair price. They sell it in local Haat Bazar and nearby markets. SMLVPC Private Limited is established and registered under the Companies Act, 2013 to support the women NTFP collectors in selling the NTFPs. This company is working only for the shareholders (women NTFP collectors) of the company. Majority of women NTFP collectors know about the functioning, and governing structure of the company, only 8% of respondents of Vijaypur block, are not aware of it. (Table 15)

3.4.1.6 AWARENESS ON PAST ACTIVITIES OF PRODUCER COMPANY

The study finds that beneficiaries are not fully aware of various activities of the producer company (see Annexure – Table 13). The results show that that 40% and 32 % of NTFP Collectors in Karahal and Vijaypur block respectively are aware of the meetings of the producer company. In addition, only 11% NTFP Collectors in Karahal and 14% in Vijaypur block are aware that Producer Company purchases the NTFPs from collectors through collection centres. The pricing aspect of NTFPs is important, and 9% of NTFP collectors of Karahal block and 25% in Vijaypur block have discussed on the pricing of NTFPs during meetings. Also, 3% NTFP collectors of Karahal Block and 10% of Vijaypur block have admitted that they have not participated in any of the activities in the company in the past six months. The possible reason may be the awareness about the activities as 37% and 19% of NTFP collectors in Karahal and Vijaypur blocks are not aware of any activities organized by the company. Therefore, to take corrective measures, the literacy level of the NTFP collectors is very important for the capacity building module. The training should be more participative and use of some pictorial kinds of material like flipcharts.

All the women NTFP collectors are aware of the functioning, and governing structure of the producer company except 8% in Vijaypurblock.

32

FACTS AND FINDINGS

3.4.2 CAPACITY BUILDING OF COMMUNITY LEADERS (CLs)

CLs lead and manage the groups of NTFP collectors, i.e. producer groups and SHGs. Each group consists of 20 NTFP collectors and 2 CLs lead the group. In this manner, 500 CLs have received the training on sustainable harvesting techniques to lead the 5000 NTFP collectors by promoting 250 SHGs. The study has assessed the capacity building of CLs on awareness about sustainable harvesting techniques, knowledge on primary processing and value addition. The study has also evaluated the performance of CLs on the basis of awareness about the group and responsiveness towards the group. PRPs/LRPs have selected CLs during the mobilization meetings or bi-monthly meetings of the groups based on their social activeness, leadership qualities and learning attitude.

80% of the CLs know about sustainable harvesting in both the blocks.

3.4.2.1 KNOWLEDGE AND IMPLEMENTATION STATUS ON SUSTAINABLE HARVESTING

Figure 10 presents the responses of CLs about the sustainable harvesting process knowledge and implementation. It indicates that 80% of the CLs know about sustainable harvesting in both the blocks. However, in Karahal block, they have a satisfactory level of awareness, whereas in Vijaypur block, the average level of awareness about the sustainable harvesting implementation. The results highlight that 20% of CLs have a dissatisfactory level of knowledge about the implementation of sustainable harvesting in both blocks.

Figure 10 : Awareness on Sustainable Harvesting Practices - CLs

0% 0%

80%

0%

20%

Vijaypur

Highly Satisfactory

Satisfactory

Average

Not Satisfactory

dissatisfactory

3.4.2.2 UNDERSTANDING OF THE PROCESS OF VALUE ADDITION

Figure 11 (Radar Chart) shows the understanding of the value addition process of CLs in both the blocks. Overall understanding is dissatisfactory in Vijaypur block while moderate in Karahal block. In Karahal block CLs have a satisfactory understanding of cleaning, drying and sorting of NTFPs and average on the grading of NTFPs. However, in Vijaypur block, NTFP collectors have adequate understanding only for drying of NTFPs and average or dissatisfactory for others.

Figure 11 : Understanding on Value Addition Process

012345

Cleaning ofNTFP

Sorting of NTFP

Grading of NTFP

Drying of NTFP

Packaging ofNTFP

Processing ofNTFP

Product of NTFP

OverallUnderstanding

Understanding on Value Addition Process

Karhal

Vijaypur

None of the CLs (100%) has a satisfactory understanding of marketing linkages and its practical applicationin both the blocks.

33

FACTS AND FINDINGS

3.4.2.3 MARKETING LINKAGES UNDERSTANDING AND EXTENT OF PRACTICAL APPLICATION

The study has assessed the CLs’ understanding and extent of practical application on market linkages for NTFPs (see Annexure – Table 14). It shows that CLs (100%) do not have a satisfactory understanding on marketing linkages and its practical application in both the blocks. The probable cause of this may be that they do not receive training on the marketing of NTFPs.

3.4.2.4 INFORMATION ABOUT PRODUCER COMPANY FORMATION AND GOVERNING STRUCTURE

Figure 12 presents that, all CLs (100%) are aware of the formation of the producer company in both the blocks. The CLs have replied that the company is working for purchasing of NTFPs from the collectors, increasing their income, and stopping them from migrating out of the village for other work. However, CLs of Karahal block are more aware of the company’s objective and governing structure than the Vijaypur block.

Figure 12 : Awareness on Producer Company and its Structure - CLs

100%

40%

20%

80%

100%

60%

0%

20%

FPC formation

Objectives of FPC

Governing Structure

Model of FPC

Vijaypur Karhal

It is one of the reasons that CLs of Karahal block feels that the FPC model is appropriate to tackle the problems related to NTFPs.

3.4.2.5 LIVELIHOOD SUSTAINABILITY THROUGH PRODUCER COMPANY MODEL

The study finds that the presence of the producer company has created

differences in the earnings of CLs and NTFP collectors. As shown in table 15 (Annexure), there is a major difference in NTFP Collectors’ income which has increased from Rs. 1000 to Rs. 10,000 per annum. 60% of NTFP collectors have found that income has increased from Rs. 5,000 to Rs.10,000 per annum and 40% said from Rs. 1000 to Rs. 5000 in Karahal block and vice versa in Vijaypur block.

CLs of both the block have a similar response on the increase in income. 40% of CLs have accepted that income has increased from Rs. 1,000 to Rs. 5,000 and 60% found that income has increased from Rs. 5,000 to Rs. 10,000.

The study finds that CLs are aware of their roles and responsibilities towards the group. The results reveal that the most important responsibility is to represent the group and manage the NTFP collection. Further, they have to ensure the quality of NTFPs collected from both the blocks. They conduct weekly meetings related to NTFP collection where they discuss issues about NTFP collection and middlemen.

3.4.3 CAPACITY BUILDING OF CRPS (VANSAKHIS)

CRPs responsibility is to manage the village level activities related to NTFP collection. They coordinate training at the village level for project beneficiaries and manage the collection centre at their village. Further, they coordinate with LRPs/PRPs for transporting the collection from the collection centre to the office or storage/go-down of the producer company. CRPs

After the presence of the producer company, the income of NTFPcollectors and CLs have increased from Rs. 1000 to Rs. 10000.

34

FACTS AND FINDINGS

“Young CRP’s Dream”

Sapna is a young CRP of Khirkhiri village of block Karahal. She is 18 years old. She has passed 12th class and planned to pursue her graduation. Although she got married in a very young age but her in-laws are very supportive for her education and the work of CRP. During the field visit, the study team has interacted with her and discussed about the prospects and problems of NTFP collectors, CLs, CRPs and sustainability of the producer company. She is very positive and honest for her work. She has told about the problems of middlemen in the villages. Middlemen are very active in the villages wherein they have distributed advance money in the villages. When the NTFP season comes, they collect NTFPs directly from collector’s place or sometimes from the forest areas. The other problems are lack of marketing linkages, no training has been provided on marketing process and no marketing linkages are available. The biggest benefit which she has discussed on behalf of all NTFP collectors is about getting good price for their produce. They are aware about the sustainable harvesting process. Transportation fare is saved due to presence of collection centre in the village and it is then utilized for some other work. Now they have lot of time for their house chores, which was not available earlier. She has admitted about the cash crisis in the collection centres and apathy of collectors to forcibly sell their produce to local vendors/middlemen. So, there are few issues which needs to be addressed.

also supervise and monitor the work of CLs. In the chain of beneficiaries, CRPs are working as a bridge between CLs and LRPs/PRPs and have more responsibility towards NTFP collectors.

The study has evaluated the capacity building of CRPs based on the understanding of NTFPs, sustainable harvesting process, knowledge on value addition, record keeping and most importantly, the understanding of the marketing process of NTFPs.

During the FGDs with CRPs of both the blocks, the study team has discussed the various issues related to NTFP collection, processing, harvesting, quality, value addition, marketing and challenges of middlemen in the NTFP business growth.

3.4.3.1 CLARITY ON STEPS OF VALUE ADDITION AND MARKET STATUS

Figure 13 (Radar Chart) presents the training and capacity building assessment of CRPs on the scale of 1-5 in both the blocks. It shows that the CRPs have a satisfactory understanding of sustainable harvesting process of NTFPs in both the blocks. However, they are moderately satisfied in case of primary grading of NTFPs and becoming a member of the producer company. The results show that CRPs have dissatisfaction in Vijaypur block in many aspects such as managing books of accounts, market linkages, manage Producer Company. However, in Karahal block, they are moderately satisfied in most of the aspects.

Figure 13 : Assessment of Capacity Building of CRPs

4

3

3

2

21

3

3

21

4

3

2

3

4

1

3

11

1

01234

Sustainable Harvesting of NTFP

Primary Grading of NTFP

Value Addition of NTFP

Formation of SHGs

Formation of PGs

Manage the small business

Member of producer company

Manage producer company

Manage books of accounting

Make market linkages

Karhal Vijaypur

Satisfactory, understanding amongst the CRPs on sustainable harvesting process of NTFPs in both the blocks.

35

3.4.3.2 CRPS RESPONSIBILITY TOWARDS NTFP COLLECTORS AND CLS

CRPs have more responsibility towards NTFP collectors and CLs. During the collection seasons, they interact with them daily in the collection centres. When the study team asked from CRPs; “What efforts you have made for the success of this project?” One CRP of block Vijaypur said “I have not made any efforts and I am not getting any benefits from it. I am having more responsibilities of collection centre and getting very less remuneration”.

“Problems of NTFP Collectors”

During field visit for data validation, the study team interacted with CRP namely Gudiya Adiwasi of village Semra, Karahal block. The team had discussion with her about the NTFPs and its collection business. The study team noticed her hand with redness and inflammation on her palm. When the team asked her about what happened to your palm why it is so red and swelled. She told that a snake in the forest bitten on her hand during NTFP collection. The team was so surprised and shocked after listening this, but she was very comfortable and doing her routine work. When team asked her that did you visit the Doctor? Then she said there was no need of it, snake was not poisonous and it will get healed in some time. The study team realized that forest dwellers are aware about all kind of flora and fauna and their importance. They have adapted to those conditions and feel very comfortable.

3.4.3.4 LRPS MEETINGS WITH CRPS (VANSAKHI)

The study team has asked LRPs, “How frequently do they interact with CRPs and other beneficiaries?” LRPs of both the blocks have replied that they visit villages on a daily and weekly basis. However, the study team finds a different response from the CRPs of Vijaypur block. One case related to the issue of coordination in Vijaypur block is presented in the box. Therefore regular monitoring from the company is required to resolve such kind of issues.

“LRPs issue in Vijapypur Block”

NTFP collectors of Vijaypur block has brought few things to the notice especially in the Ghamloki village. There is no collection centre working for last one year. All the NTFP collectors of that village are selling their produce to local vendors or middlemen and interestingly no one in the village are aware about the existence of the producer company. When the study team confirmed this from the company employees, they were also not aware about it. Below given picture is during discussion with NTFP collectors of Ghamloki village.

3.4.3.3 COORDINATION OF LRPS IN VILLAGES

Coordination with the village’s NTFP collection centres is missing notably in the Vijaypur block. During the field visit, the study team has found that LRPs are not visiting villages regularly and few CRPs said that “they are not aware of the names of LRPs”.

FACTS AND FINDINGS

Daily interaction amongst CRPs, CLs and NTFP collectors during the collection season.

Infrequent meetings of LRPs with CRPs (Vansakhi) in Vijaypurblock.

36

FACTS AND FINDINGS

“LRP’s Training”

SMLVPC Private Limited was established in Karahal Block. The company has appointed six LRPs for both the blocks. LRPs are the important link between company personnel and beneficiaries of this project. LRPs handle the collection centre activities like availability of cash, weighing machine and other necessary things. During the project stage these LRPs are known as PRPs. There are total three LPRs are working in Karahal block which includes two PRPs (now LRPs) and one newly recruited LRP. Similarly in Vijaypur block one PRP (now LRP) and two newly recruited LRPs are working. During the discussion with LRPs the study team has found that newly joined LRPs did not get any training. Situation is bleak in Vijaypur block where LRPs are not trained and its impact can be seen on the villages like Ghamloki where no LRP has visited from last one year. This issue must be taken care for the benefit of beneficiaries.

3.4.3.5 ASSESSMENT OF CRPS BY LRPS

The study team has asked LRPs about the assessment of CRPs on specific indicators like how LRPs ensure that CRPs are able to handle their assigned responsibilities. 40% of LRPs have replied that they visit the collection centres and monitor their work. In addition, 20% of them have said that they ask for the NTFPs’ quantity and sustainable harvesting processes by checking the quality of NTFPs. Remaining 40% of respondents have said that they evaluate their work and listen to their problems.

3.4.3.6 AWARENESS AND UNDERSTANDING ON MARKETING LINKAGES

Marketing of NTFPs on fair prices basis is the ultimate objective of this project. CRPs directly interact with the NTFP collectors in collection centres. They check their products and guide them when they find any issues like dryness, sorting and grading of NTFPs.

CRPs need to ensure the quality of NTFPs because lower quality produces get less price in the market. The study team has asked CRPs about marketing process of NTFPs. CRPs have no idea about the sellers where the company is selling the NTFPs. Further, the study team has asked them about any visit to NTFP based institutions; processing centres and industry etc. 90% CRPs have responded positively and confirmed their visit to Bhopal Van Mela, Gwalior Van Mela and Sawai Madhopur in Rajasthan for an exposure visit. At Sawai Madhopur, they have learnt about the processing of spices (turmeric, coriander, chillies etc.) and packaging of the product. In Melas, they have learnt about the marketing process of NTFPs.

Table 16 (Annexure) presents the awareness level of CRPs on the marketing process of NTFPs. 60% CRPs of Karahal block are aware of the marketing process. Only 20% of the respondents feel that the marketing process has changed from the previous time, while 80% have not observed any changes. The study finds completely different results in the case of Vijaypur block where CRPs are not aware of any kind of marketing process of NTFPs. For further check, the study team has asked them about the identification of changes. None of the CRPs from both the block can identify the changes and unable to tell any kind of impact.

3.4.3.7 PERCEPTION CHECK ON THE FINANCIAL GAINS TO BENEFICIARIES

The study team has asked CRPs about the changes they observe in the income level of beneficiaries and basis of changes. This information is present in table 4.

40% of LRPs visit collection centres to monitor the CRPsperformance.

37

FACTS AND FINDINGS

3.4.4 CAPACITY BUILDING OF BoDs

BoDs are the decision-makers for all kinds of business activities of the producer company. The producer company has decided several eligibility criteria (informal) for the BoDs. BoDs must have primary education; take active participation in group meetings and training activities of beneficiaries. In addition, BoDs are also selected based on having good business ideas, strong decision-making abilities and active participation in NTFP collectors’ meetings. Therefore, before becoming a BOD, all BoDs work as NTFP collector. Further, they get training to run the producer company appropriately. The study has evaluated the capacity building of BoDs based on awareness about the company’s

objective, governing structure, roles and responsibilities of BoDs, decision-making ability and knowledge on the marketing process.

3.4.4.1 AWARENESS ON PRODUCER COMPANY OBJECTIVES AND GOVERNING STRUCTURE

Figure 14 presents the awareness level of BoDs on the governing structure of the producer company. The study has found that 40% BoDs of Karahal block and 20% of Vijaypur block are aware of the governing structure and remaining BoDs have no idea. The study has tried to explore these aspects through FGDs, and the results are similar.

Figure 14 : Awareness about Governing Structure – BoDs

40%

20%

60%

80%

0% 20% 40% 60% 80% 100%

Karhal

Vijaypur

No Yes

PERCEPTION KARAHAL VIJAYPUR

Self-rating by CRPs on change in income level

of beneficiaries

On the scale of 1-5, they have rated it 3, which shows that

average changes have been observed.

On the scale of 1-5, they have rated it 2, which shows that

dissatisfactory changes have been found.

Basis of change

Change is due to the formation of the producer company, better prices of NTFPs, better quality and

large quantity production.

Formation of the producer company provides

better rates to NTFPs

Requirement to sustain these changes

40% said that they maintain the sustainable harvesting practices

and 60% had no idea about it.

No idea how to sustain these changes.

Change in Average Income

*On the scale of 1-5, 1= No change, 2= Minimal Change, 3= Average Change, 4= Good change, 5= Outstanding *K=Thousand

Table 4 : Financial Gains to Beneficiaries

60% CRPs of Karahalblock are aware of the marketing processwhereas no one from Vijaypur block.

38

FACTS AND FINDINGS

During the discussion we found that, all BoDs have responded positively on roles and responsibilities towards the producer company. For instance, they are aware of the ownership of BoDs, decision-making on procurement of NTFPs and selection of staff/employees for the company. However, none of the BoDs has responded on marketing/selling decisions, value addition decisions of NTFPs, monitoring & review of the monthly performance of the staff and the company. Therefore, BoDs are not fully aware of their roles and responsibilities related to the activities of the producer company. Further, the study team has also asked about the legal liabilities of the company. BoDs of Karahal block agree that the company should follow all the legal liabilities. However, they do not know about any legal aspects such as books of records, article of association, memorandum, and audit reports. On the other hand, in Vijaypur block BoDs are not aware of any legal matter of the company.

3.4.4.2 FINANCIAL LITERACY & UNDERSTANDING OF BOOKS OF ACCOUNTS

During the discussion with BoDs of both the blocks, the study team has found that 80% BoDs of Karahal block and 60% BoDs of Vijaypur block are illiterate. BoDs have a bank account, but the level of financial literacy is not satisfactory. BoDs of both the blocks are not aware of any books of account like cash book, ledger, stock register, profit and loss statement, balance sheet and cash flow statements.

3.4.4.3 BENEFIT PERCEPTION OF BoDs WITH THE PRODUCER COMPANY

The study team has asked BoDs about financial benefits, ownership pride and responsibility associated with the producer company on the scale of 1-5 (5=High and 1=Low). BoDs of Karahal block are highly benefitted and feel proud to be associated with the producer company. These feelings make them more responsible for the producer company (see Annexure - Table 17). However, the situation is just the opposite in Vijaypur block. During the discussion with BoDs, the study team has observed that BoDs of Vijaypur block are less participative in the company. The probable reason is the distance from Vijaypur to Karahal (150-kilometre), and it is very tough for them to participate in all the meetings of the company.

3.4.4.4 AWARENESS ON MARKETING LINKAGES OF PRODUCER COMPANY

The study team has asked BoDs about their awareness of where the company sells its aggregated produce. 60% BoDs of Karahal block are aware that the company sells its produce to only one trader, i.e. Priya traders, Karahal (see Annexure - Table 18). The trader is not a prominent trader of NTFPs, but the company does not have any other option due to lack of marketing linkages. The producer company does not have any strong linkages with the market, which is felt by all the beneficiaries even by the staff of the company. This issue must be looked and resolved for the sustainability

40% BoDs of Karahalblock and 20% of Vijaypur block are awareof the governing structure of the producer company.

80% and 60% BoDs of Karahal and Vijaypurblocks are illiterate.60% of BoDs of Karahalblock are aware that the producer company sellsNTFPs to only one trader (Priya traders).

39

of the company. On the other hand, BoDs of Vijaypur block are not well informed and having poor knowledge about the working of the company. The same issue has already noticed, and the reason is non involvement of BoDs of Vijaypur block with the company.

3.4.4.5 AWARENESS ON TURNOVER AND PROFITABILITY OF THE PRODUCER COMPANY

Table 19 (Annexure) presents the data on the awareness level of the BoDs on turnover and profitability of the company. The results show that none of the BoDs in any block is aware of the turnover and profitability of the company. However, BoDs of Karahal block have an understanding of the future business plan of the company, and they want to open the processing centre to make products of NTFPs.

3.4.4.6 DECISION MAKING PROCESS OF BoDs

BoDs are not taking any decisions related to the producer company activities. The staff of the company is taking all the decisions such as selling of NTFPs, the appointment of the employees and the availability of cash in the collection centre. Illiteracy of BoDs, lack of information on governing structure and working process restrict them to take any decision. BoDs are the signatory authority for the withdrawal of money from the banks, , and this is theonly activity performed by them.

3.5 DETAILS ON TRAINING QUALITY AND EXPOSURE VISITS OF BENEFICIARIES

Table 5 presents the details of training and exposure visit of NTFP Collectors, CLs, CRPs, and BoDs of both the blocks. It provides a clear understanding of resource persons, number of days for training, and a number of training given to the beneficiaries, places of exposure visits, and satisfaction with training quality and exposure visits.

“Conflict among BoDs of Karahal and Vijaypur Block”

The study team has observed one interesting fact about BoDs of Vijapypur. They are not very much aware about the producer company because they visit the company only once during Annual General Meeting. They have problem on why they have not been called when important decision like signing authority in the company for money withdrawal are being made. When the study team talked to newly appointed CEO who was not much aware about the company working process. She replied because BoDs of Karahal block are residing in nearby areas and can come easily at any time for any work in the company. Whereas BoDs of Vijaypur block are not feeling any ownership pride because they have not been given any authority. The study team thinks that this is an important issue and it must be resolved for better functioning of this company in both the blocks.

FACTS AND FINDINGS

None of the BoDs in any block is aware of the turnover and profitability of the producer company. Illiteracy and lack of information on governing structure are the main reasons for very less participation of BODs in decisionmaking.

40

Table 5 : Details on Training, Capacity Building & Exposure Visit

FACTS AND FINDINGS

Vijaypur

Resource Person CRP/PRP/LRP CRP/PRP/LRP PRP Member from Access team

Number of times Training Provided One time One time 40% (2 times),

60% (One time) Two times

Total no of Days (Duration of

Training)2 Days 1 Days 40% (2 Days, 60%

(1 Days) 2 Days

Satisfaction Level with Training (1-5 scale)

3 3 3 1

Any Exposure Visit (Y/N) Yes (100%) Yes (80%) 40% (No),

60% (Yes) Yes (100%)

Places of Exposure Visits

Sawai Madhopur, Jaipur, Gwalior

Sawai Madhopur, Gwalior, Bhopal

Sawai Madhopur,

Gwalior Mela, Bhopal Van Mela

Sawai Madhopur, Bhopal Van Mela and few visited to

Delhi

Satisfaction Level with Exposure

VisitsAverage

40% Satisfied, 20% Average, 40%

Dissatisfied

60% Highly dissatisfied, 40%

Satisfied

60% Average satisfies, 40% Dissatisfied

1-5 scale stands for, 1= highly dissatisfactory and 5= highly satisfactory

TRAINING QUALITYKARAHAL

WOMEN NTFP COLLECTORS

COMMUNITY LEADERS (CLS) CRPS (VANSAKHI) BoDs

Resource Person CRPs/PRPs/LRPs CRPs/PRPs/LRPs PRPs/LRPs Member from Access team

Number of times Training Provided One time One time 60% (2 times),

40% (One time) Two times

Total no of Days (Duration of

Training)2 Days 1 Days 60% (2 Days, 30%

(1 Days) 10% (NA) 2 Days

Satisfaction Level with Training (1-5 scale)

3 3 3 3

Any Exposure Visit (Y/N) Yes (100%) Yes (100%) Yes (100%) Yes (100%)

Places of Exposure Visits

Sawai Madhopur, Jaipur, Gwalior

Sawai Madhopur,

Gwalior Mela, Bhopal Van Mela

Sawai Madhopur,

Gwalior Mela, Bhopal Van Mela

Sawai Madhopur, Bhopal Van Mela and few visited to

Delhi

Satisfaction Level with Exposure

Visits

20% Stisfied, 30% Average and 50%

Non responsive

40% Satisfied, 60% Average

60% Satisfied, 40% Dissatisfied

60% Average satisfies,

40% Dissatisfied

41

It indicates that except the BoDs and few CRPs (60%) of both the blocks, almost everyone (NTFP collectors, CLs and 40% CRPs) has received training only once. The number of days for the training are two for everyone except CLs. In addition, every beneficiary of the project has exposure visits, and most of them are satisfied with these exposure visits.

3.6 SMLVPC PRIVATE LIMITED

SMLVPC Private Limited established under Companies Act, 2013 on 13th August 2017. The main objective of the company is to work for the welfare of Sahariya women NTFP collectors of Karahal and Vijaypur block of Sheopur district. Karahal block is the headquarter of the company, and 5000 women NTFP collectors of Sahariya tribe (PVTG) are the owners of the company.

3.6.1 GOVERNING STRUCTURE

SMLVPC has five BoDs and five members. The members in the governing structure are from Karahal and Vijaypur block. The company has a team of six LRPs, a data entry operator, an accountant and a CEO to manage the day to day operations. Company has total 5000 shareholders out of which 3000 are from Karahal block and remaining from Vijaypur block. The company has planned to increase 1000 shareholders in Karahal block. The company has opened an NTFP collection centre in each village. Vansakhi (CRPs) of the company look after these centres on a monthly honorarium basis. These CRPs belong to the local community. All women NTFP collectors sell their collected NTFPs at these centres. LRPs of the company transport these NTFPs from the collection centres to the company office or go-down.

Table 20 (Annexure) presents the general information about the number of BoDs, shareholders, collection centres, number of CRPs and producer groups in both the blocks.

3.6.2 ORGANIZATIONAL STRUCTURE OF THE COMPANY

BoDs govern the company and staff/employees execute the decisions to manage the various activities of the company. Under the functional staff, the producer company has a CEO, data entry operators, an accountant and LRPs. For supporting the business, the company has women NTFP collectors, CRPs (Vansakhi) and CLs. Figure 5 presents the organizational structure of the company.

Figure 15 : Organizational Structure of the Company

FACTS AND FINDINGS

One-time training received by the Women NTFP Collectors and CLs and two-times by BoDs.

42

FACTS AND FINDINGS

OFFICE AND EMPLOYEE OF PRODUCER COMPANY

3.7 OPERATIONAL PROCESS OF THE PRODUCER COMPANY

3.7.1 BUSINESS MODEL OF THE PRODUCER COMPANY

Women NTFP collectors of Sahariya tribe (PVTG) are the owners of the company. NTFP collectors mobilize in the producer groups and get training on sustainable harvesting process to reduce the exploitation of NTFP resources. Two CLs are there to monitor NTFP collectors in producer group. The company has formed a federation of these NTFP collectors’ producer group to sell the produce at better a price. The company has opened a collection centre in every village which is managed by local CRPs (Vansakhi). CRPs get monthly honorarium from the company. NTFP collectors collect the NTFPs from the forest in a sustainable manner and bring it to the village level collection centre after primary processing.

There are 29 collection centres in Karahal while 19 in Vijaypur block to purchase the NTFPs from collectors. LRPs visits collection centres daily or weekly basis depending on the requirement of collection centres. They monitor and transport NTFPs from collection centres to the company headquarter. The

company purchases the NTFPs of collectors at market price. The company has installed Aonla shredding machine, solar dryer, and weighing machine to process the NTFPs. The company has established marketing linkages locally in the Karahal block to sell their aggregated produce in a wholesale manner.

Figure 16 : Business Model of the Producer Company

SOLAR DRYER FOR PROCESSING OF NTFPS

MANUAL DE SEEDER FOR THE PROCESSING OF NTFPS

29 and 19 NTFP collection centres in Karahal and Vijaypurblocks respectively.

43

FACTS AND FINDINGS

3.7.2 MARKET ORIENTATION OF THE PRODUCER COMPANY

The main objective of the producer company is to aggregate the produce of NTFP collectors and sell it into the market at a better price. The company has tried to establish market linkages with big traders but fail to do so. The company is selling its produce to one trader, i.e. Priya trader, Karahal. The trade is not a big trader of NTFPs, but the company does not have any other option to sell their produce. The study has found that NTFP collectors, CLs, CRPs have not exposed to any training related to the marketing of NTFP produce. The study observed that 60% of BoDs are aware of the marketing of NTFPs. CEO of the company and other staff (data entry operator and LRPs) have discussed the absence of marketing linkages during FGDs. They have observed that it is a more significant obstacle in the success of this project.

3.7.3 HR PROCESS OF THE PRODUCER COMPANY

The company has recruited only two employees (a data entry operator and an accountant) on a monthly honorarium basis. MPSRLM has appointed the CEO of the producer company as a Young Professional (YP). At present, nine persons are working, which includes the CEO, a data entry operator, an accountant and six LRPs. During a discussion with Karahal block BoDs, the study team has observed that the company needs staff. The hiring of new staff will incur extra expenses, and the company does not have extra funds to afford any new expenses without increasing its turnover. CEO of the company

has discussed with the study team about the hiring of the marketing employees. They will help the company in establishing marketing linkages. The company has given an advertisement in the newspaper. After receiving the application, the company has interviewed a few persons, but the company does not find a suitable candidate for the marketing job at a local level.

3.8 CHANGE IN MANAGEMENT OF PRODUCER COMPANY

MPSRLM has launched this project in 2017 and ADS has managed it till March, 2019. The company staff took charge in April 2019 to manage the company. In July 2019, MPSRLM appointed a fresh post graduate (YP) as a CEO in the company.

As per DPR of this project, MPSRLM has formulated the exit strategy to ensure sustainability and continuity of activities in project areas. The project will exit from the villages when self-reliant collector groups are formed and linked for further finance with financial institutions to take up livelihood activities. As part of the strategy, the project will develop the concept of sustainability of collector groups as the smallest business entity. These groups will address their issues and undertake various activities. These activities include aggregation of the NTFP commodities, grading, sorting and processing in the primary form at the block level processing centres until their packaging and distribution.

The authors observe that the exit plan of the project is good, but the execution of it has a few flaws. The study team does not find any self-reliant collectors’ group. There is no proper execution of capacity building and training of the collectors’ group. DPR reports fifteen training to CRPs, eight training to PRPs on various themes and twenty exposure visit to CRPs and CLs. In addition, it includes four training for staff by district consultations and three training to BoDs on business development.

NTFP collectors, CLs and CRPs have not exposed to any training related to the marketing of NTFPs.

44

FACTS AND FINDINGS

During a discussion with beneficiaries, the study team has found that only one or two-time training has given to them and two exposure visit to Sawai Madhopur and Gwalior fair. Training and exposure visit are generally not very specific. BoDs do not receive any training in business development (marketing linkages). The study team does not find any specific processing centre in any block, while DPR claimed that two processing centres have established in each block.

The transition of the project to the community is not appropriate as beneficiaries are not ready to handle the the producer company and its activities. LRPs (Earlier as PRPs) were the only person who was taking care of the producer company after the exit of project staff.

3.9 BUSINESS GROWTH POTENTIAL OF THE PRODUCER COMPANY

To assess the business growth potential of the company, the study team has analysed the data of collected NTFPs and its price before and after the formation of the producer company.

3.9.1 INCREASE IN NTFP COLLECTION

NTFP Collectors have mainly collected Aonla, Salai gum, Bel, Chakoda and Gudmar/Satavar. In addition, they have also collected a few others such as Mahua, Chani and Khair good. The study has analysed the changes in the quantity and price of NTFPs due to this intervention (SMLVPC).

The study have applied the paired “t” test to analyze the significant difference between the quantities of NTFP collected and their price before and after the formation of the company. The study has included five NTFPs for analysis which includes Aonla, Salai gum, Punwar or Chakoda, Satavar and Bael/Belora because maximum responses are available to these NTFPs. The results for Karahal and Vijaypur block are discussed in the subsequent subsections.

3.9.2 ANALYSIS FOR NTFPS QUANTITY COLLECTED BEFORE AND AFTER FORMATION OF THE PRODUCER COMPANY IN KARAHAL BLOCK

Table 21 (Annexure) shows the descriptive statistics of the NTFPs collection before and after the formation of the producer company. There is a significant difference in the NTFPs quantity before and after the formation of the producer company. The average quantity of Salai gum collected before the existence of the producer company was 42.85 kilogram while 65.61 kilograms after its existence. It indicates that the quantity has increased after the formation of the company. However, the quantities of NTFPs like Aonla, Bael, Punwar and Satawar have significantly decreased after the formation of the company. The probable reason of this is the use of sustainable harvesting process. NTFP collectors have to avoid raw and small fruits for not exploiting the whole root of Satawar. The hypotheses assumed for the analysis are:

Null Hypothesis: No significant changes have been observed in the NTFPs’ quantity after the formation of the Producer Company.

Alternative Hypothesis: Significant changes have been observed in the NTFPs’ quantity after the formation of the Producer Company.

Table 22 (Annexure) presents the difference in the mean value of the quantity of NTFPs collected before and after the formation of the producer company. The p-value is less than 5% level of significance in the case of pair 1,2,4 and 5. The null hypothesis gets

No processing centrefound by the study team in any block during the field visit which was claimed by DPR.

45

FACTS AND FINDINGS

rejected while accepted in case of pair 3. Therefore, there is a significant difference between the quantity of Aonla, Bael, Punwar and Satawar and no significant difference observed in the quantity of Bael.

3.9.3 ANALYSIS FOR NTFPS PRICES/RATES BEFORE AND AFTER THE FORMATION OF THE PRODUCER COMPANY IN KARAHAL BLOCK

The study has done the analysis on the prices/rates of NTFPs before and after the formation of the company. Table 23 (Annexure) presents the prices of NTFPs before and after the formation of the producer company. The average prices in case of all NTFPs have increased like Salai gum price before the existence of the company was Rs. 120.14 but after it became Rs. 191.22. It shows a 59% increase in prices which have directly benefitted the beneficiaries of the project. Similarly, the prices of Aonla, Bael, Punwar and Satawar have also increased. The standard deviation value of the prices does not have many variations, which means the stability in the prices of NTFPs.

The hypothesis assumed for the prices of NTFPs are:

Null Hypothesis: No significant changes have been observed in the prices/rates of NTFPs after the formation of the Producer Company

Alternative Hypothesis: Significant changes have been observed in the prices/rates of NTFPs after the formation of the Producer Company

Table 24 (Annexure) presents the result of the paired t-test. The mean value is negative in case of all NTFPs, which is the difference of prices before and after the formation of the producer company. Standard deviation value is higher in the case of Salai gum and Satawar compared to Aonla, Bael and Punwar. The value of t statistics is negative, and the p-value is less than 5% significance level in case of all NTFPs. Therefore, the study finds that there is a significant difference in the prices of all the NTFPs after the formation of the company.

3.9.4 ANALYSIS FOR NTFPS QUANTITY COLLECTED BEFORE AND AFTER FORMATION OF PRODUCER COMPANY IN VIJAYPUR BLOCK

The study has performed a similar analysis for the NTFP quantity in Vijaypur. The major NTFPs available in Vijaypur block are Aonla, Satawar, Punwar/Chakoda, Balora and Salai gum. FIs have found maximum responses on these five NTFPs while other NTFPs include Mahua, Tendu Patta and Khair gond. The study does not analyze these due to low responses.

Table 25 shows the mean statistics and standard deviation of the NTFPs quantity before and after the formation of the producer company. The results indicate that there is a significant difference in the quantity of NTFPs. Aonla’s average quantity collected before the formation of the producer company was 52.59 kilogram while after formation it reached to 74.43 kilograms. Similarly, the increment has been found in the case of remaining NTFPs’ quantity.

Average quantity of Salai gum has increased(42.85 kilograms to 65.61 kilograms) after the formation of the producer company in Karahal block.

59% increase in the prices of Salai gum after the establishment of the producer company in Karahal block.

46

FACTS AND FINDINGS

The hypotheses assumed for the analysis are:

Null Hypothesis: No significant changes have been observed in the quantity of NTFPs in Vijaypur block after the formation of the Producer Company.

Alternative Hypothesis: Significant changes have been observed in the quantity of NTFPs in Vijaypur block after the formation of the Producer Company.

Table 26 presents the result of a paired t-test on the NTFPs quantity in Vijaypur block. The p-value is less than 5% and fails to accept the null hypothesis in the case of Aonla, Satawar, and Salai gum. However, in the case of Punwar and Belora, the p-value is more than 5% and failed to reject the null hypothesis. Therefore, there are significant changes in the NTFPs quantity (Aonla, Satawar, and Salai gum) after the formation of the producer company.

3.9.5 ANALYSIS FOR NTFPS PRICES/ RATES BEFORE AND AFTER FORMATION OF PRODUCER COMPANY IN VIJAYPUR BLOCK

Table 27 presents the results of a paired t-test related to prices of NTFPs before and after the formation of the producer company.

The prices of Aonla, Satawar, Punwar, Belora and Salai gum have increased 212%, 86%, 50%, 180% and 38% respectively.

The hypotheses assumed for the prices of NTFPs are:

Null Hypothesis: No significant changes have been observed in the prices/rates of NTFPs after the formation of Producer Company.

Alternative Hypothesis: Significant changes have been observed in the prices/rates of NTFPs after the formation of Producer Company.

Table 28 depicts the results of paired t-test of NTFPs prices before and after the formation of the producer company. The p-value is less than 5% significance value

and failed to accept the null hypothesis in case of all the NTFPs. It indicates that those prices of NTFPs (Aonla, Satawar, Punwar, Belora, Salai gum) have significantly increased after the formation of the company.

212%, 86%, 50%, 180% and 38% increase in the prices of Aonla, Satawar, Punwar, Belora and Salaigum respectively.

3.10 FINANCIAL PERFORMANCE OF THE PRODUCER COMPANY

The study has evaluated the financial performance of the producer company with the help of financial ratios. Table 32 (Annexure) shows the funds provided by the ADS for the establishment of the company and for managing three years of expenses. The study has used two years of audited financial statements (2017-18 and 2018-19) to assess the financial performance of the producer company. Table 29 (Annexure) presents the financial ratios, their definitions and their formulas for calculation.

Table 30 (Annexure) presents the analysis of financial statements of the producer company on liquidity, solvency, turnover, profitability, financial efficiency and financial strength. Liquidity measures the short-term cash position of the company, as cash is significant for managing working capital expenses. Current ratio

Average quantity of Aonla has increased(52.59 kilograms to 74.43 kilograms) after the formation of the producer company in Vijaypur block.

47

FACTS AND FINDINGS

(CR) measures the short-term liquidity of the company. The optimum ratio for the firm should be between 1.5:1 to 2:1. CR of the producer company is 1.17 and 1.28 for the year 2017-18 and 2018-19 respectively. As CR is not very high, it shows the company has current assets only 1.28 times more than a current liability in 2018-19. LATA measures the liquidity in respect of total assets. Higher the LATA ratio betters the liquidity position of the company. LATA has decreased from the financial year 2017-18 to 2018-19, which shows liquidity in respect of assets is not good. Acid test ratio (ATR) is a money ratio and also measures the liquidity position. Therefore, there is less liquidity in the company and the company may face the problem to meet short-term obligations.

Inventory ratio measures the extent to which net working capital finances the current assets. This ratio is nil in the financial year 2017-18 and less than one in 2018-19. This ratio clearly shows that the working capital of the producer company is unable to finance its current asset due to low working capital. Due to this, many times collection centres face a cash crisis.

Solvency ratio measures the long-term financial soundness of the company. The study has measured the financial soundness of the producer company with the help of debt-equity ratio (DER), fixed asset to owned (FAOF) fund ratio and total liabilities to owned fund ratio (TLOF). The study does not have the required data to calculate DER and FAOF. TLOF ratio is not very high, which shows the company is not using much debt to finance its assets. This ratio is very low, and it shows that the

company does not have a high long-term debt obligation.

Turnover ratios show the effectiveness of the assets utilized in the business. The study has used total sales turnover and working capital turnover ratios to measure the turnover of the producer company. Turnover ratio situation is satisfactory in 2017-18 while not very good in 2018-19 as it is low and shows ineffective utilization of resources. Working capital turnover is higher in 2017-18 than 2018-19. The company needs to utilize all its resource optimally to increase efficiency, which will affect the operating efficiency of the company.

Profitability ratios like NPTA, NPOF, NPFA measure the profitability of the company. The company is not able to generate any profitability as the ratios NPTA, NPOF, NPFA has minimal values. Efficiency capital ratio (ECR) measures the efficiency of the company in utilizing capital assets. The ratio is 0.27 in the year 2017-18 and 0.04 in the year 2018-19, which is very low value in both the years. It indicates that the company is unable to utilize the assets of the company.

Net worth ratio (NWR), Net capital ratio (NCR) and ECR measure the financial strength of the company. Due to unavailability of data, the study has not calculated NWR and ECR. However, NCR shows the sufficiency of assets to pay long term liability. This ratio is equal to one because the assets and liabilities of the company are the same.

Overall, the study has analyzed the financial statements of two years only. Some of the ratios indicate the financial performance is not satisfactory. For instance: there should be some actions to increase the turnover of the company for the operational and financial sustainability of it. The company needs some more time and support (financial and non-financial) to become self-sustainable.

Low ECR (0.04) indicating less utilisation of capital assets of the producer company.

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FACTS AND FINDINGS

3.11 CHANGES IN THE LIFE OF BoDs AFTER FORMATION OF PRODUCER COMPANY

The study observes that BoDs have empowered after the formation of the producer company. They are the owner of the company and getting recognition at home and in the village due to the association with the company. Their earnings have increased from Rs 1,000 to 15,000, which have made them more empowered. Still, there are few challenges such as illiteracy of BoDs affect their involvement in the working of the company. The study team has observed that BoDs either come for any meeting or if the company needs its signature for withdrawal of money. Before producer company, the collectors were unorganized and were forced to sell their produce to local traders, the local market and the middleman. Collectors do not get the fair price of their produce and get exploited by the middleman. The middle man also follows a unique technique to get more produce from the villagers. They distribute the money in advance and take the benefits of adverse situations of NTFP collectors. One of the stories is discussed in the following box:

3.11.1 AWARENESS ON MARKETING PROCESS OF PRODUCER COMPANY

The study has asked BoDs about the awareness of the marketing process of the producer company. Table 31 (Annexure) shows that 60% BoDs of Karahal block are aware of it that the company sells its products to only one trader, i.e. Priya Traders, Karahal. The producer company does not have any other option except selling the NTFPs to Priya traders. All the beneficiaries, even the staff of the company, also understand this problem. This issue must be looked and resolved for the sustainability of the company. On the other hand, BoDs are not well informed and not aware of their roles and responsibilities in Vijyapur block. The issue is because of the non-involvement of BoDs of Vijaypur block in the company.

“Middleman Effect”

Jamna Adiwasi a tribal women of village Bagcha under Vijaypur block has shared her story related to middleman. Jamna is the only earner in her family while her husband drinks and spends all money in small gambling. She is always in need of money for family needs and depends on NTFPs. Once her child was very ill and she had no money to see the doctor. Middleman took the benefits of this situation and bought the NTFPs at very low price from her. Most of the collectors face similar kind of situation and unable to resolve the issues. One collector has told that collection centre never give us money in advance but middleman do so. Therefore, why don’t they should sell the NTFPs to middlemen?

3.11.2 EARNING SUFFICIENCY

BoDs are not able to earn sufficient money to run the family expenses. Only 40% of BoDs have confirmed that they can manage livelihood expenses while rest are dependent on income from other sources like agricultural, animal rearing, small shop and labour work. It indicates that BoDs are not financially empowered. Further, the company is not in this position to distribute the dividend to make them financially independent. The company is working in this direction by increasing the number of

Earnings of BoDs have increased from Rs. 1000 to 15000 after the association with the producer company.

49

shareholders in the Karahal block. It believes that the involvement of a larger number of shareholders will increase the collection amount, which will increase the turnover and profitability of the company.

40% of BoDs are entirely dependent on producercompany for their livelihood and do not seek for alternative income sources.

3.12 USEFULNESS OF THE SCHEME

Women NTFP Collectors are playing a

vital role in the livelihood contribution of their family by collecting more products using sustainable harvesting process. The collection of a large quantity of NTFPs at the collection centre will help the company to bargain with big traders. Presently, the company is struggling to identify big traders to sell the NTFPs at an optimum price to fetch more revenue for the company. At the same time involvement of more NTFP collectors by making them shareholders will expand the collection quantity and make them socially and economically empowered.

3.12.1 EXTENT OF CONTRIBUTION OF BENEFICIARIES IN THEIR FAMILY LIVELIHOOD

The major contributions are discussed below:

FACTS AND FINDINGS

Table 6 : Usefulness of the Scheme

PARTICULARS

KARAHAL VIJAYPUR

Women NTFP

CollectorsCLs CRPs BoDs Women NTFP

Collectors CLs CRPs BoDs

Social Contribution 30% 20% 40% 60% 5% 0% 20% 20%

Financial Contribution 18% 20% 40% 40% 0% 0% 0% 0%

Labor Time Reduction 80% 80% 90% 90% 70% 72% 80% 80%

Time Saving 82% 80% 90% 90% 60% 40% 60% 40%

3.12.1.1 SOCIAL EMPOWERMENT

Table 6 demonstrates the usefulness of the scheme for different stakeholder of the scheme in terms of its contribution in their

life. NTFP Collectors has become socially empowered after the implementation of this project. They are now able to speak in public. They can give their opinion on the meeting. They are setting an example for the other women who are not associated with this project. The study has found 30% of NTFP collectors, 20% of CLs, 40% of CRPs and 60% of BoDs of Karahal block are socially empowered. In the case of Vijaypur block, 5% of women NTFP collectors, 20% of CRPs, 20% of BoDs are socially empowered. One case related to social empowerment is discussed in the following box.

Social empowerment is the added benefit to the stakeholders after the association with the producer company.

50

FACTS AND FINDINGS

Average 80% reduction in labour time in the forest and processing of NTFPs from the producer company in both the blocks.

“Social Empowerment”

During FGD with BoDs of the producer company, the study team asked about their social life after association with this scheme. Sunita Adiwasi, BoD of Karahal block said that a lot of changes happened. Now I am getting respect in the society and in the family. One thing which she said, “She never sat on the chair but now whenever she visits the company office, she always gets a chair to sit”. So, this is the biggest change which she felt after association.

3.12.1.2 FINANCIAL EMPOWERMENT

MPSRLM has launched this scheme to make the NTFP collectors financially empowered. After association with this scheme, 18% of women NTFP collectors, 20% of CL and 40% of CRPs and BoDs of Karahal block are financially empowered. On the other hand, in Vijaypur block, nothing has changed after the formation of the company. The study team has observed one interesting case in Vijaypur block during FGD with BoDs which is present in the following box.

3.12.1.3 REDUCTION IN LABOR TIME AND TRAVELLING TIME

The other significant benefits associated with this scheme are reduction in labour

time and travelling time. 80%-90% beneficiaries of Karahal block feel that labour time in the forest and processing of NTFPs have reduced and 70%-80% in Vijaypur block. Earlier, they used to spent the whole day travelling and finding a suitable vendor to sell the produce. But now no need to visit anywhere, collectors sells their produce in the collection centres in the villages which are established by the company.

“Remuneration Demanded by BoDs”

Haseena Adiwasi lives in Telipura village. She is a BoDs member in Vijaypur block. During field visit, she complained that she is not getting any remuneration like CRPs and demanded the remuneration. She was not aware about her ownership right in the company. Every time she visits for a meeting after making some travelling expenses and suffers the travelling pain with her one-year old kid. Her husband has suggested her to leave the company and join some other work. Therefore, less information generates this kind of issues, proper training and monitoring is important from time to time to convey the benefits of this scheme.

None of the stakeholders feels financially empowered after the formation of the producer company in Vijaypur block.

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FACTS AND FINDINGS

3.13 MONETARY AND NON-MONETARY SUPPORT REQUIRED TO STRENGTHEN THE ACTIVITIES

The study has observed that there is a need for monetary and non-monetary support to strengthen livelihood mission activities in the longer run. It will empower the beneficiaries and make the producer company financially sustainable. The CEO of the company has emphasized about the kind of support required to run the company.

“Monetary and Non-Monetary Support Required “

SMLVPC Pvt Ltd has been able to benefit the Sahariya community in many ways. But like any other company, this too requires its own time to reach the level of sustainability and that stage is still a long way. One of the major requirements of the company is to achieve its financial stability. Being in its third year, the producer company requires support both in terms of financial as well as manpower. It would require funds to meet the basic requirements like salary and office expenses. In addition to this, it requires a proper and efficient team/staff to carry out the various functions. The producer company has huge potential in terms of its capacity to procure NTFPs. Therefore, it requires better marketing linkages as well as infrastructural facilities to store such huge quantities of NTFPs to enhance its business potential.

Apart from this, there is also the need for more of capacity building and training of the members including the CRPs, which would help the company in its growth in the long run.

Source: Discussion with CEO

3.13.1 CONTINUOUS TRAINING AND MONITORING

Beneficiaries have demanded further training for better understanding and learning. They have received only one time training and maximum for two days which is not sufficient to learn and practice everything. The evaluation of training quality has already made in table 5. All the beneficiaries have an average response regarding satisfaction with the training. Therefore, there is a need for continuous monitoring for improvement in overall practices. CEO of the company should also do monitoring, but she has hardly visited any village.

3.13.2 CONTROL ON MIDDLEMEN

The study team has discussed with all the stakeholders during the field visit about the middlemen. According to the discussion, middlemen are present in every village. The producer company personnel has also reported this issue but unable to take any hard step for nullifying their effect. Therefore, the policymakers need to provid strong support for the permanent removal of middleman from every village.

3.13.3 FORWARD LINKAGES FOR THE PRODUCER COMPANY

Most of the beneficiaries have gone to an exposure visit to Sawai Madhopur, where they have got exposure to the processing plant of spices. Beneficiaries have received

Continuous monitoring is required by the CEO to improve the overall practices of the producer company.

Value addition of NTFPs is required to increase the monetary value of the products and provide employment opportunities to more women.

52

FACTS AND FINDINGS

training on sustainable harvesting but no training on value addition. Therefore, they can do drying and sorting of NTFPs properly and unable to do rest activities like grading, sorting and packaging of NTFPs. They need further training on value addition of NTFPs. A primary processing unit for NTFPs must be in the future expansion plan of the company. It will increase the monetary value of the products and provide employment opportunities to many women of both the blocks and nearby areas.

3.13.4 FINANCIAL SUPPORT AND HANDHOLDING TO PRODUCER COMPANY

Company is in the mid of inception and growth stage and putting arduous effort to make it profitable. Since its inception, ADS staff has handled it and handed over to company staff later. The company did not have any CEO till June 30th 2019. The support staff of the company was managing various activities. Financial statement analysis of the producer company shows that the liquidity position of the company is satisfactory; the company does not have any debt obligation. However, it is facing the challenge of low inventory turnover. All over company need some more time and financial support from the MPSRLM for sustainability.

3.14 CHALLENGES OF THE PROJECT

The study team has observed many challenges from the beneficiaries and the producer company point of view. Some of the challenges require immediate attention, and there is a need for the intervention of MPSRLM. The other challenges can be tackled at the company level. The study has observed major challenges:

3.14.1 CAPACITY OF BoDs TO RUN FPC LIKE BUSINESS

The study has found that capacity building of BoDs is not up to the mark. The data analysis shows that maximum BoDs are illiterate, , not aware of the working structure of the company. 80% of BoDs in

Karahal block and 60% in Vijaypur block are illiterate and unable to contribute to the major decision of the company like procurement of NTFPs, sales decisions and value addition decisions.

There is no clarity among BoDs about their role in the company. The study team has not noticed any management traits among the BoDs. In addition, no involvement of BoDs of Vijaypur block makes them unaware of many issues related to the company. The study emphasises on the need for further training and capacity building of BoDs for the betterment of the producer company.

3.14.2 OWNERSHIP DRIVE TO CARRY ON BUSINESS

During the discussion with BoDs, the study team has realised that being associated with the producer company make BoDs of Karahal block proud. Nevertheless, illiteracy, poor capacity building and lack of knowledge about the working process of the company hinder their contribution in it.

There is more involvement of Karahal block BoDs is in terms of signatory authority and discussion with the officials. However, BoDs of Vijaypur block are not happy due to their low participation in the major decision of the company. The possible reason for less participation of Vijaypur block BoDs is the distance from Vijaypur to Karahal (150 km. as discussed with BoDs). Therefore, it is very tough for them to participate in all the meetings of the company.

Illiteracy, poor capacity building and lack of knowledge about the working process of the producer company are the major obstructing factor.

53

FACTS AND FINDINGS

3.14.3 PROCEDURAL CHALLENGES

The producer company is facing a lot of procedural challenges in the form of local market dynamics. The absence of marketing linkages locally and no access to the market is a major challenge for the company. BoDs are least concerned about the marketing of NTFPs. They are not aware of the turnover and profitability of the company. The company staff has undertaken decisions related to selling of NTFPs and BoDs have no consensus on marketing/selling of NTFPs.

At present, the financial position of the business is not very sound. Financial analysis shows that year on year turnover and profitability is declining. Therefore, there is a need for strong measures in the form of marketing linkages and processing of NTFPs for the continuity of business in the long-term.

3.14.4 TAKEOVER OF MANAGEMENT FROM IMPLEMENTING AGENCY

Implementing agency (ADS) has handed over the project to the community without developing a self-reliant collectors group. There was no job clarity, and the producer company was working without a CEO. During that time, LRPs were the lead person to handle the overall activity of collection.

As part of the strategy, the project needs to develop the concept of sustainability for the NTFP collectors’ group (smallest business entity). These groups will address their issues and undertake activities such as aggregation of the NTFPs, their grading, sorting and processing in the primary form

at the block level processing centres. The study team has not found any self-reliant collectors’ group. BoDs have not received any training on business development of the company. Further, the study team has not found any specific processing centre in any block, while DPR claims there are two processing centres in each block.

3.14.5 SOCIAL FACTORS IN THE LOCAL POPULATION AS OBSTRUCTION

The study has found that the Sahariya tribe generally resides in separate Basti in villages and lives in small families. NTFP collection is the predominant occupation for them, and a few depend on rainfed agriculture. Females (Sahariya) are the primary bread earner in both the blocks. Males are habitual of drinking and involve in bad habits. Sometimes they take away all the earning and from their houses. So, lack of income opportunities is the persistent problem of the tribes in the study area. Most of them have not achieved their school education, which is also a reason why they are most disadvantaged amongst the social classes. Therefore, no or less education leads to unemployment, livelihood risk and affects the physical and psychological health of the tribe people. Further, few females do not get permission to work with the producer company. At present, the company has 5000 shareholders; however, the company is planning to increase it to 6000.

During the discussion with company staff, the study team noticed that it is very tough to convince the females to contribute Rs. 100 and become a member of the producer company. They ask various questions related to the reason for giving the Rs. 100 contribution and benefits of it.

3.14.6 BUSINESS GROWTH POTENTIAL- FINANCIAL ANALYSIS

The producer company has a reasonable prospect of growth in both the blocks. Tables 21 & 25 show that the after implementation of the scheme, the average collected quantity of NTFPs (Satawar and Salai gum)

NTFP collections are the predominant occupation for the Sahariya tribe followed by the rainfedagriculture.

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FACTS AND FINDINGS

have increased. In contrast, the quantity of Aonla, Punwar and Belora have decreased in Karahal block. In the Vijaypur block, the overall collected quantity of NTFPs has increased. The study has found that in Karahal block, 90% of NTFP collectors have started using sustainable harvesting practices and stopped harvesting raw fruits which leads to reduced quantity. The average prices of NTFPs have increased in both the blocks after the formation of the company.

It shows that the quantity and price of the NTFPs have increased and beneficiaries have received benefits of Rs. 1,000 to 15,000 annually. During the discussion, beneficiaries had admitted that this financial gain is due to the formation of the producer company. However, the company is not getting the benefits of the increased quantity of NTFPs, as the turnover of the company is decreasing subsequently. Poor management of collection centres is the other main reason. Additionally, unavailability of cash in the collection centre has forced the beneficiaries to sell their produce to local traders.

The study team has observed during the field visit that in many of the villages in Vijaypur block no LRP has visited from last one year. LRPs have their perspective regarding this, and they are not happy with the remuneration. LRPs (Earlier called PRPs) were getting Rs. 17,000 remuneration and other benefits during the project execution phase. After the handover of the project by ADS, remuneration has reduced to Rs. 11,000 and travelling expenses.

CEO of the company has no prior experience to handle the operations of the company. She has not visited any villages in Vijaypur block while In Karahal block she has visited one or two villages. Therefore, visits must be continuous to motivate the beneficiaries to sell their produce to collection centres and make them aware of the benefits of the company. LRPs are the active person and taking care of collection centres, but reduced salary and low benefits restrict

them to work efficiently.

Another significant issue is the non establishment of any marketing linkages to sell the produce at better rates by the company. The company sells all the produce to local traders. The producer company personnel have admitted that they need more working capital to manage the collection centres.

3.14.7 OPERATIONAL CHALLENGES

The producer company is facing a lot of operational challenges in the form of working capital crisis, transportation issue, seasonality, and managing the vendor. The major issue is managing the working capital funds. The producer company is running 29 collection centres among 43 villages. Technical support agency has provided the working capital funds for the three years only (see Annexure - Figure 27). The available fund is not sufficient, and the company is unable to generate many funds through collection centres due to poor collection.

From the financial statement analysis of the company (see Annexure - Table 26), it is understandable that the sales turnover

29 collection centres are run by the producer company in the 43 villages.

Poor management and unavailability of cash at collection centres are forcing the NTFP collectors to sell the NTFPs to the localtraders.

55

FACTS AND FINDINGS

of the company is low and decreased from 1.26 times to 0.53 in the financial year 2018-19. Therefore, low collection of NTFPs in the collection centres is the primary reason for the low turnover of the company. During a discussion with the LRPs, CRPs and NTFP collectors, the study has found that due to unavailability of cash in the collection centres, collectors sell their produce to local traders or nearby market. Further, it is difficult for six LRPs to manage more than 40 villages to provide the resources on time in the collection centres.

The company does not have its transportation means to carry collected produce from collection centres to godown. Sometimes non-availability of rented transportation creates a delay in carrying the produce.

There is collection sync problem in Vijaypur block; however, in Karahal block LRPs are working efficiently. During the field visit, the study team has observed that in Vijaypur block LRPs are not visiting collection centres regularly. In a few villages of Vijaypur, no LRP has visited from last one year, and no collection centre is working there.

Seasonality is another major problem in the operations of the company. During rainy season NTFP collectors do not find any produce in the forest and stay empty hands without money. During that time, they depend on intermediaries who provide them advance money for the NTFPs. In this way, they get trapped in the vicious cycle and supply their collected NTFPs to intermediaries. Therefore, there

is a demand from the NTFP collectors about employment opportunities in the offseason.

All the beneficiaries have admitted that the producer company has set a standard price of NTFPs. They get the better price of NTFPs, but sometimes local vendors and intermediaries provide a better price of NTFP than the company rates. Therefore, most of the produce goes into the hands of intermediaries. As a result, the ultimate benefit is not reaching to the producer company.

NTFP COLLECTION CENTRE IN A VILLAGE

3.15 STRATEGY ON EXTENSION AND REPLICATION OF THE PROJECT

3.15.1 ASSESSMENT MODEL INDICATING LEVEL OF CAPACITY DEVELOPMENT ACHIEVED

This project is socially and economically feasible; but it will take some time to become financially feasible, as the financial performance of the company is not very sound. The producer company is still dependent on the reserve fund and unable to generate sufficient capital to make the company self-sustainable. Beneficiaries of this project are not adequately trained on

Need of the money in the rainy season and no NTFPs collection in this season are the factors pushing the NTFPcollectors in the vicious cycle of intermediaries.

Majority of the NTFP collectors (except 20% in Karahal block) have shown their reluctanceon the expansion of the current project.

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FACTS AND FINDINGS

value addition and sustainable harvesting like-grading and sorting of NTFPs. They are still having less knowledge of proper extraction and grading of NTFPs. The producer company has not established any marketing linkages and still struggling to find the bigger traders to sale their produce.

The study team has asked beneficiaries on further extension and replication of this project. They are positive on extension and forward linkages and suggest to open a primary processing unit for making products of NTFPs. Figure 12 presents the responses of beneficiaries on a further extension of the projects. 20% of NTFP collectors, 20% of CLs, 40% of CRPs, 60% of BoDs and 100 % of LRPs at Karahal block have responded positively for the extension of the projects. However, in Vijaypur block, none of the NTFP collectors and CLs shows their responses on the extension of the projects. In addition, 20% of CRPs, 40% of BoDs and 60% of LRPs are in favour of the extension of the project for the employment opportunities and development.

Figure 17 : Responses of Beneficiaries on Extension of Project

20% 20%

40%

60%

100%

0% 0%

20%

40%

60%

0%

20%

40%

60%

80%

100%

120%

NTFPCollectors

CLs CRPs BODs LRPs

Karahal Vijaypur

CEO of the company and other staff have given a positive response for the extension of the project in the coming years. Currently, the company is struggling to achieve the break-even point (BEP), which is achievable by the joint efforts of all beneficiaries.

Sustainable livelihood scheme by MPSRLM in tribal and remote areas is a perfect model. It requires rigorous joint efforts of

beneficiaries and support from MPSRLM in the form of financial and non-financial support. However, the replication of this project is possible in other areas keeping in mind the challenges of this project.

Figure 18 : Responses of Beneficiaries on Replication of Project

50%

40%

60% 60%

80%

32%

20% 20%

40%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

NTFP Collectors CLs CRPs BODs LRPs

Karahal Vijaypur

Figure 18 depicts the responses of beneficiaries on the replication of this project. In Karahal block 50% of NTFP collectors, 40% of CLs, 60% of CRPs, 60% of BoDs and 80% of LRPs think that replication of this project would be successful and help the population of other areas. However, in Vijaypur block, 32% of NTFP collectors, 20% of CLs, 20% of CRPs, 40% of BoDs and 60% of LRPs are positive for the replication of the project. The study has also analyzed the beneficiaries’ responses on how can the process of sharing and learning be made better? Further, 20% of the beneficiaries have replied that by teaching/training and sharing learning can be better, whereas 80% of respondents have no idea about it.

Average 58% and 34.4% of the stakeholders of Karahal and Vijaypurblock are positive in terms of replication of the current project.

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FACTS AND FINDINGS

3.15.2 BUSINESS TURNOVER AND KEY POTENTIAL INDICATORS (KPIS) INDICATING SUSTAINABILITY

KPIs of this project are training and capacity building of the beneficiaries (Women NTFP collectors, Vansakhi (CRP), CLs and BoDs). The other KPIs are social mobilization of beneficiaries, development of community institution (SMLVPC), the establishment of collection centres and better prices of NTFPs.

Financial statement analysis shows that the turnover ratio of the company has decreased from 1.26 times (2017-18) to .53 times (2018-19). The profitability of the company depends on sales turnover. The producer company has not achieved profitability yet, and it is struggling to manage its operational expenses. Therefore, strong capacity building of beneficiaries, monitoring of collection centres, training of BoDs on the institutional building is required for the sustainability of the business. For achieving financial sustainability, the company must regulate the intermediaries.

3.15.3 MINIMUM KPIS AND PHASING ROADMAP FOR THIRD PARTY

The minimum KPIs for the project are profiling of beneficiaries of the study area, training, development of community institutions, providing marketing and financial support till the self-sustainability of beneficiaries. The participatory approach of this project increases the scope of replicating such projects in other areas. The project can be implemented in other NTFP rich areas and where NTFPs are the sources of livelihood. It will improve their earnings, living status and social security.

Training and capacity building of the stakeholders are the KPIs of the current project.

LAYOUT A

58

CONCLUSION

59

CONCLUSION

The objective of this study is to evaluate the sustainable livelihood enhancement through NTFP scheme

under MPSRLM in Sheopur district. This study has various sub-objectives such as evaluate the capacity building of beneficiaries (NTFP collectors, CLs, CRPs, and BoDs), and financial sustainability of SMLVPC Private Limited. The study has evaluated the usefulness of this scheme and the impact of this scheme on NTFP collectors. The study has found that 90% of beneficiaries of this scheme are illiterate, and 70% of beneficiaries are dependent on NTFP collection as a significant source of their livelihood. Further, the project has done capacity building of beneficiaries on sustainable harvesting process, value addition of NTFPs, record keeping, and managing the producer company.

The analysis has revealed that 72% of NTFP collectors of Vijapypur and 100% of Karahal block has started using separate tools for harvesting different kind of NTFPs. Similarly, 70% of NTFP collectors of Vijaypur and 92% of Karahal has stopped damaging the roots and branches of trees. The study has observed major differences in bringing the NTFPs from the forest, cleaning, drying and aggregating them. In Karahal block majority of the NTFP collectors have admitted that they have changed the process of bringing NTFPs, cleaning process (64%), drying process (52%) and aggregating process (12%). However, the situation is different in Vijapypur block where only 10% of NTFP collectors accept the changes in brining the NTFPs from the forest. Further, 3%, 9% and 1% of NTFP collectors have changed the cleaning, drying and aggregating process respectively. On value addition process collectors are aware of the cleaning and drying of NTFPs but not trained on grading and proper storage of NTFPs. In Karahal block, 62% of NTFP collectors manage the sales record of NTFPs while only 8% in Vijaypur block. Collectors are aware of the existence of the producer company but not aware of the working and governing structure of the company.

The study has determined, 80% of them have satisfactory awareness about sustainable harvesting process in Karahal block while in Vijaypur block, 80% have an average level of awareness. On value addition process overall understanding is dissatisfactory in Vijaypur block, while moderate understanding in Karahal block. Awareness of marketing process is not satisfactory, and no training is given on marketing of NTFPs to the CLs. They are aware of the existence of the producer company but not aware of the objectives of the company. They have admitted that the producer company is beneficial for them and bringing positive changes in their lives.

The study has observed that CRPs have a satisfactory understanding of sustainable harvesting process of NTFPs and average knowledge on primary grading of NTFPs in Karahal block. However, dissatisfactory results are present in Vijaypur block related to marketing linkages, management of the small business, and management of books of accounts. Besides, co-ordination of CRPs with LRPs is missing in Vijaypur block.

Further, in both the blocks, CRPs are responsible for the good collection, and quality produce in the collection centres, and they regularly interact with NTFP collectors and CLs. CRPs are dissatisfied with the remuneration which they are getting in return of managing the collection centre. They have no information on the marketing of NTFPs but visited fairs in Gwalior and Bhopal to witness understand the process. They have admitted that changes have come in their lives due to the formation of the producer company. They are getting better rates of NTFPs then earlier. The study finds that LRPs are an important link between the company and beneficiaries. They handle the collection centre activities like availability of cash, weighing machine and other necessary things. During the project implementation stage, these LRP were known as PRPs. Now in Karhal block, two PRPs who now become LRPs and one newly recruited LRP is

60

CONCLUSION

working. Similarly, in Vijaypur block one PRP and two newly recruited LRPs are working. During a discussion with LRPs, the study team has found that newly joined LRPs do not receive any training. The situation is unsatisfactory in Vijaypur block where all LRPs do not receive training at all. The study has observed the impact of it on the villages like Ghamloki where no LRP has visited from last one year.

BoDs are the owner and decision-maker of the producer company for all the business activities. 40% BoDs of Karahal block and 20% of Vijaypur block are not aware of the governing structure of the company. BoDs of Karahal block are highly benefitted and feel proud to be associated with the company. These qualities make them responsible towards the producer company while the situation is just the opposite in Vijaypur block. BoDs of Vijaypur block are dissatisfied with the decisions of CEO of the company due to lesser involvement of them in the activities. The study has found a lack of ownership of pride among the BoDs of Vijaypur.

Further, the study observes that the training quality of beneficiaries is not up to the mark; the study has found that beneficiaries have trained one or two times and maximum for two days. Training on sustainable harvesting has done with the help of flip charts and posters, and no field training has provided to them. Most of the beneficiaries have failed to recollect the memories of training. Beneficiaries have given a neutral response on the scale of 1-5 about the satisfaction level on training. Beneficiaries have a varying level of satisfaction from the exposure visit. In Karahal block, 20% of NTFP collectors, 40% of CLs, 60% of CRPs, 60% of BoDs are satisfied while rest are neutral or nonresponsive. In the Vijaypur block, 40% of CLs, 40% of CRPs and 60% of BoDs are satisfied.

In line with all these, all the beneficiaries feel financially and socially empowered due to this scheme, but the percentage is less. In Karahal block, 30% of women

NTFP collectors, 20% of CLs, 40% of CRPs, and 60% of BoDs feel socially empowered. In Vijaypur block, 5% of women NTFP collectors, 20% of CRPs and 20% of BoDs are feeling socially empowered. Financial empowerment is less than social empowerment in both the blocks. 18% of NTFP collectors, 20% of CLs, 40% of CRPs and 40% of BDOs are financially empowered in Karahal block, but in Vijaypur block no sign of financial empowerment. More than 70% beneficiaries in both the blocks admitted that labour time has reduced and they have enough time to manage their other work.

The study has observed that the formation of the producer company has brought significant changes in the collected quantity and prices of NTFPs. The analysis shows that collected quantity has been decreased in Karahal block (except Salai gum) while increased in Vijaypur block. Prices of NTFPs have been significantly increased (more than 50%) in both the blocks, which increase the income of beneficiaries. 60% of beneficiaries feel that after implementation of the scheme, they have a financial gain of Rs 1000 to Rs 15000 annually. Nevertheless, the financial statement of the producer company is not very sound, and the turnover of the company declined in 2018-19. Financially the company is dependent on the funds provided by MPSRLM for the establishment of the company. Company has left with little funds, and in the coming years, operational risk can be generated because of the low turnover of the company. The company is unable to generate sufficient revenue to meet operational expenses. The turnover is decreasing because collection centres are not getting a sufficient quantity of NTFPs due to middlemen effect. Sometimes variation in the prices of NTFPs generates this situation. The company needs some more time to reach the profitable position of the company.

Further, the producer company needs monetary and non-monetary support to strengthen livelihood mission activities in

61

CONCLUSION

the long run and to empower the beneficiaries. One of the major requirements of the company is to achieve its financial stability. It would require funds to meet the basic requirements like salary, office expenses. The producer company has enormous potential in terms of its capacity to procure NTFPs. Therefore, It requires better marketing linkages as well as infrastructural facilities to store such vast quantities of NTFPs to enhance its business potential. Apart from this, there is also a strong need for capacity building and training of the beneficiaries (NTFP collectors, CRPs (Vansakhi), CLs and BoDs) which would help the company in long-term growth.

LAYOUT A

62

RECOMMENDATIONS

63

RECOMMENDATIONS

The study provides recommendations based on the information from the structured interview schedule, FGDs, interview of the employee of the company and interactions with the beneficiaries of this project in the field. The following are the recommendations (three different phases) to address the challenges and issues of sustainable livelihood through NTFP scheme in Sheopur district.

Planning Phase

1. Change the training program

2. Management of market middleman

3. Infrastructure development

Implementation Phase

1. Further training and capacity building of beneficiaries.

2. Monitoring of training program

3. Establishment of marketing linkages

4. Documentation of Records

5. Handholding and financial support to the producer company

6. Experienced professionals

7. Future Extension

8. Establishment of forward linkages

5.1 PLANNING PHASE

This study has the following recommendation in the planning phase:

5.1.1 Change in Training Program

Table 5 presents the details of training and exposure visit program. LRPs/PRPs have received training with the help of picture-based flipcharts, and small handheld calendars as a part of the visual presentation which will be also helpful for the illiterate NTFP collectors. The maximum numbers of days for the training are one or two days only which is also one-time. The study finds that no initiative is taken for further evaluation and feedback for training. The study team has found that beneficiaries are unable

to recall the training and no clarity on the primary processing and value addition part. As per the DPR, NTFP collectors have got training on good collection practices, sustainable harvesting, and importance of seasonality in the harvesting process, primary processing, and grading. The analysis of the collected data shows that NTFP collectors are familiar with cleaning, drying and aggregating of NTFPs but not aware of grading and value addition. NTFP collectors have no information about the market. The study recommends enforcing these points in further training.

TRAINING THROUGH POSTERS

Source: Information by Company

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RECOMMENDATIONS

Similarly, Vansakhi (CRP) and paraprofessional have got training on a few additional parts like the producer company formation and its governance structure, marketing linkages, government schemes/programs and financial literacy. The analysis has found that Vansakhi is aware of the producer company but no information on the governing structure of the company. Further, Vansakhi (CRPs) have not received training on financial literacy.

As per DPR, CLs must have trained on enterprise and value chain development of NTFPs. The study has found that CLs do not have training in the above aspects.

Further, training is required to beneficiaries on primary processing, value addition, enterprise development and value chain development. Training module must be revised as per the need of various stakeholders, and this training must be given in to the field to learn the practical aspects of learning. If the training is not possible in the field, then the training module must include at least a few sessions based on the field.

5.1.2 MANAGEMENT OF THE MARKET MIDDLEMEN

The formation of the producer company has forced the Intermediaries (middlemen) to change their business model and find ways to attract the NTFP collectors for procuring the products. The members appear to have swayed in favour of these intermediaries impacting the producer company’s operations. The group activities and a training component must be added with an objective to make the members realize the importance of the group and remain committed to its operations. The program also needs to develop pricing innovation and management of lean period for its members for earning view point. One such practice could be to deduct a fixed portion of the everyday earnings which can be pooled and distributed during the lean period.

5.1.5 INFRASTRUCTURE DEVELOPMENT

The company needs a fully equipped processing centre for the primary processing of NTFPs. After harvesting of NTFPs, primary processing is required, but no processing centre has been developed in this project. The DPR of the project prescribes the processing centre to have various instruments like solar dryer, Aonla shredding machine, vacuum packaging unit and other ancillary equipment. The study team has not found any specific processing centre and the godown are ill managed. The producer company has its establishment in the Karahal block, which has a small room as a godown. The program delivery in line with DPR requirements should be factored through the implementing agency and the compliance processes should be strengthened.

5.2 IMPLEMENTATION PHASE

This study proposes the following:

5.2.1 MONITORING OF TRAINING PROGRAM

The project has missed the aspect of monitoring the training program. The beneficiaries have admitted that they have received one-day training with the help of pictures and no one has visited them after that. The study strongly recommends for the monitoring of the training program.

5.2.2 ESTABLISHMENT OF MARKETING LINKAGES

The producer company has not established any strong linkages with the market. It is selling the NTFPs to only one local trader in Karahal block. The marketing linkages are very crucial for the company to sell the NTFPs at a better rate. The producer company has tried to establish the marketing linkages on its level but unable to get links with any big NTFP trader. This part needs a revision in the program design. The anticipation of stakeholders learning the complex process of market linkages cannot be assumed from the producer company.

65

RECOMMENDATIONS

On the contrary, the implementation agency should be made responsible in getting this done and maintaining it along with other stakeholders like BoDs. A much clearly laid assessment framework for this component is highly recommended as amendment to the program.

5.2.3 DOCUMENTATION OF RECORDS

The study team has observed that the producer company has not managed their documents like attendance register of BoDs, meeting’s agenda or collection centres register. However, the only record found is the collection centre receipts. Similar to the core Panchsutra compliance, record-keeping for producer company should be insisted upon. The LRP/PRP should be looked up for ensuring this compliance on regular basis.

5.2.4 HANDHOLDING AND FINANCIAL SUPPORT TO PRODUCER COMPANY

The study has noticed that it is too early to measure the financial performance of the company. The financial ratio analysis however does suggest that the company’s performance on turnover and profitability is not encouraging. The turnover of the company depends on the NTFPs collection, which is reducing due to middleman led market intensity. The producer company needs some more time and handholding support from MPSRLM. The study recommends that a detailed review of requirements of the additional financial and non-financial support should be assessed by MPSRLM. This can help in templating the support design for all subsequent program roll-outs.

5.2.5 NEED FOR EXPERIENCED PROFESSIONALS

The producer company needs experienced professionals to handle the operations of NTFP business. Lack of experienced professionals is a hurdle to make the company self-sustainable. It is evident from the study that the inexperienced CEO is unable to take the logical decisions

and prepare the future road map of the producer company.

5.3 FUTURE EXTENSION

For the future extension, the study recommends:

5.3.1 ESTABLISHMENT OF FORWARD LINKAGES

The study has found that many beneficiaries respond positively to the forward linkages of the company. The beneficiaries want to open a processing unit to make the products from NTFPs. They have received an exposure related to it after their visit to Sawai Madhopur where they have seen the processing of spices. Similarly, they want to open a processing unit for the products of NTFPs like- Aonla powder, Aonla candy and various other products of NTFPs. Along with marketing linkages, the producer company needs knowledge of linkages and financial linkages. The knowledge linkages will assist the beneficiaries on time to time by providing the training and capacity building assistance. At the same time, the producer company needs financial assistance for the growth of the company. MPSRLM has provided financial assistance for the three years after that no source of funding is available to the producer company. The study recommends establishing the linkages with the financial institutions for fulfilling the needs of infrastructure development, working capital requirements and other operational expenses.

LAYOUT A

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REFERENCES

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REFERENCES

1. Arnold, J. E. M., Ruiz Perez, M., & Wollenberg and Ingles. (1998). The role of NTFPs in conservation and development. Incomes from the Forest. Methods for the Development and Conservation of Forest Products for Local Communities, 11-41.

2. Belcher, B., Ruíz-Pérez, M., & Achdiawan, R. (2005). Global patterns and trends in the use and management of commercial NTFPs: Implications for livelihoods and conservation. World Development, 9(33), 1435-1452.

3. Byron, N., & Arnold, M. (1999). What futures for the people of the tropical forests?. World development, 27(5), 789-805.

4. Chauhan, S., & Murray, E. V. Financial performance and evaluation of some Farmer Producer Companies in South India.

5. Cocks, M. L., & Wiersum, K. F. (2003). The significance of plant diversity to rural households in Eastern Cape province of South Africa. Forests, Trees and Livelihoods, 13(1), 39-58.

6. De Beer, J. H., & McDermott, M. J. (1989). The economic value of non-timber forest products in Southeast Asia: with emphasis on Indonesia, Malaysia and Thailand. The economic value of non-timber forest products in Southeast Asia: with emphasis on Indonesia, Malaysia and Thailand.

7. Food and Agriculture Organization of the United Nations, Koppell, C. R., & Falconer, J. (1990). Major Significance of” Minor” Forest Products: The Local Use and Value of Forests in the West African Humid Forest Zone.

8. Kar, S. P., & Jacobson, M. G. (2012). NTFP income contribution to household economy and related socio-economic factors: Lessons from Bangladesh. Forest Policy and Economics, 14(1), 136-142.

9. Nepstad, D. C., & Schwartzman, S. (1992). Introduction: Non-timber product extraction from tropical forests evaluation of a conservation and development strategy. Advances in economic botany, 9, vii-xii.

10. Plotkin, M., & Famolare, L. (1992). Sustainable Harvesting and Management of rainforest Products.

11. PÈrez, M. R., Arnold, J. E. M., & Byron, Y. (Eds.). (1996). Current Issues in Non timber Forest Products Research: Proceedings of the Workshop” Research on NTFP”, Hot Springs, Zimbabwe, 28 August-2 September 1995. Cifor.

12. Peters, C. M., Gentry, A. H., & Mendelsohn, R. O. (1989). Valuation of an Amazonian rainforest. Nature, 339(6227), 655-656.

13. Peters, C. M., Gentry, A. H., & Mendelsohn, R. O. (1989). Valuation of an Amazonian rainforest. Nature, 339(6227), 655-656.

14. Programme des Nations Unies pour l’environnement. (1999). Cultural and spiritual values of biodiversity (p. 772). D. A. Posey (Ed.). London: Intermediate Technology.

15. Ros-Tonen, M. A., & Wiersum, K. F. (2005). The scope for improving rural livelihoods through non-timber forest products: an evolving research agenda. Forests, Trees and Livelihoods, 15(2), 129-148.

16. Shackleton, C., & Shackleton, S. (2004). The importance of non-timber forest products in rural livelihood security and as safety nets: a review of evidence from South Africa. South African Journal of Science, 100(11), 658-664.

17. Salafsky, N., Dugelby, B. L., & Terborgh, J. W. (1993). Can extractive reserves save the rain forest? An ecological and socioeconomic comparison of nontimber forest product extraction systems in Peten, Guatemala, and West Kalimantan, Indonesia. Conservation Biology, 7(1), 39-52.

LAYOUT A

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ANNEXURE

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ANNEXURE

7.1 TABLES

Table 7 : List of Villages

Source : Name of Villages Data provided by MPSRLM

Table 8 : Survey Response Rate

S.N. VILLAGES (KARAHAL)

TOTAL POPULATION (VILLAGE WISE)

VILLAGES (VIJAYPUR)

TOTAL POPULATION (VILLAGE WISE)

1 Bhimlat 61 Ghamloki 41

2 Chakrampura 80 Chappar 80

3 Karrai 80 Golipura 197

4 Piparani 143 Khitarpal 87

5 Goras 422 Natholipura 111

6 Uparikhori 61 Paira 167

7 Semra 61 Telipura 80

8 Khirkhiri 181 rampura 60

9 Ameth 99 Bhagcha 80

10 Sirsanbadi 52 Danache 68

BLOCK

WOMEN NTFP COLLECTORS (100 IN EACH

BLOCK)

CLS (5 IN EACH

BLOCK)

CRPS (5 IN EACH

BLOCK)

BODS(5 IN EACH

BLOCK)

LRPS (2 IN EACH

BLOCK)TOTAL

Karahal 86 5 5 5 2 103

SRR 86% 100% 100% 100% 100% 88.03%

Vijaypur 99 5 5 5 2 116

SRR 99% 100% 100% 100% 100% 99.14%

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Table 9 : Literacy Rate

Education Status

KARAHAL BLOCK VIJAYPUR BLOCK

NTFP Collectors BoDs CRPs CLs NTFP

Collectors BoDs CRPs CLs

Illiterate 97% 80% 40% 60% 92% 60% 0 60%

Upto 5th 2% 20% 40% 40% 4% 0 40% 0

5th to 8th 0 0 0 0 4% 40% 20% 40%

9th to 12th 0 0 20% 0 0 0 40% 0

Graduation and Above 1% 0 0 0 0 0 0 0

Total 100% 100% 100% 100% 100% 100% 100% 100%

Table 10 : Age of Beneficiaries

AGE GROUP KARAHAL BLOCK VIJAYPUR BLOCK

NTFP Collectors BoDs CRPs CLs NTFP

Collectors BoDs CRPs CLs

20-30 24% 0 60% 40% 25% 0 40% 0

30-40 36% 80% 40% 20% 34% 100% 60% 60%

40-50 28% 20% 0 40% 29% 0 0 40%

50-60 12% 0 0 0 12% 0 0 0

Total 100% 100% 100% 100% 100% 100% 100% 100%

Table 11 : Awareness on State Rural Livelihood Mission and NTFP Scheme

BLOCK KARAHAL BLOCK VIJAYPUR BLOCK

Awareness Yes No Yes No

Awareness of Rural Livelihood Mission 97% 3% 64% 36%

Awareness of Sustainable Livelihood through NTFP Scheme 99% 1% 54% 46%

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Table 12 : Awareness Level on Working of Producer Company

AWARENESS ABOUT PRODUCER COMPANY YES NO

Karahal Block 100% 0%

Vijaypur Block 92% 8%

Table 13 : Awareness on Past Six Month Activities of Producer Company

Table 14 : Awareness on Marketing Process - CLs

AWARENESS ON WORKING OF PAST SIX MONTHS ACTIVITIES KARAHAL VIJAYPUR

Participation in Meeting 40% 32%

Purchasing of NTFPs 11% 14%

Discussion on the pricing of NTFPs 9% 25%

No Activities 3% 10%

Not Aware 37% 19%

Total 100% 100%

AWARENESS OF MARKETING PROCESS KARAHAL VIJAYPUR

Highly Satisfactory 0% 0%

Satisfactory 0% 0%

Average 0% 0%

Not Satisfactory 100% 100%

dissatisfactory 0% 0%

Total 100% 100%

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Table 15 : Changes in Average Income of CLs & NTFP Collectors

Table 16 : Awareness on Marketing Activities - CRPs

Table 17 : Benefit Perception of BoDs with Producer Company

CHANGE IN AVERAGE INCOME PER ANNUM

NTFP COLLECTORS COMMUNITY LEADERS

Karahal Vijaypur Karahal Vijaypur

Rs. up to 1000 0% 0% 0% 0%

Rs. 1001 to 5,000 40% 60% 40% 40%

Rs. 5,001 to 10,000 60% 40% 60% 60%

Rs. 10,001 to 15,000 0% 0% 0% 0%

Rs. 15,001 to 25,000 0% 0% 0% 0%

Rs.25000 and above 0% 0% 0% 0%

Total 100% 100% 100% 100%

AWARENESS LEVELKARAHAL BLOCK VIJAYPUR BLOCK

Yes No Yes No

On Marketing Process 60% 40% 0% 100%

Change in Marketing from Previous Process 20% 80% 0% 100%

Identification of Changes 0% 100% 0% 100%

Any Impact on NTFP Collectors 0% 100% 0% 100%

PERCEPTIONS OF BODS KARAHAL VIJAYPUR

Financial Benefits 4 1

Ownership Pride 4 1

Responsibility towards Producer Company 4 1

*Scale 1-5, 5= High, 1=Low

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Table 18 : Awareness of Marketing Linkages - BoDs

Table 19 : Awareness on Turnover and Profitability of the Company - BoDs

Table 20 : Organisational Information about the Producer Company

Source: Information provided by the Company

AWARENESS ON MARKET LINKAGES KARAHAL VIJAYPUR

Yes 60% 0%

No 40% 100%

TURNOVER AND PROFITABILITY OF THE COMPANYKARAHAL VIJAYPUR

Yes No Yes No

Turnover of the Company 0% 100% 0% 100%

Profitability of the Company 0% 100% 0% 100%

Future Business Plan for the Company 100% 0% 0% 100%

TURNOVER AND PROFITABILITY OF THE COMPANYKARAHAL

TOTALKarahal Vijaypur

No. of BoDs/Members in Board 5 5 10

Number of Shareholders 3000 2000 5000

Number of Villages under the company 29 19 48

Number of Collection centres 29 19 48

Number of CRPs 31 20 51

Number of PGs formed till date 150 100 250

Number of Community Leaders 300 200 500

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Table 21 : Descriptive Statistics Quantity of NTFPs

Source : SPSS 20

Table 22 : Paired Samples Test Statistics of NTFPs

Source : SPSS 20

MEAN N STD. DEVIATION

STD. ERROR MEAN

Pair 1*BSGA 42.28 74 28.091 3.266

ASGA 65.61 74 14.757 1.715

Pair 2BAA 55.41 74 26.220 3.048

AAA 44.19 74 19.179 2.229

Pair 3BBA 138.31 74 78.393 9.113

ABA 128.85 74 56.226 6.536

Pair 4BPA 58.77 74 37.077 4.310

APA 33.11 74 7.617 0.885

Pair 5BSA 55.34 74 43.795 5.091

ASA 77.35 74 10.299 1.197

*BSGA= Salai gum quantity before Producer Compnay, ASGA- Salai gum quantity after Producer Company, BAA= Aonla quantity before Producer Company, AAA= Aonla quantity after Producer Company, BBA= Bael quantity before Producer Company, ABA= Bael quantity after Producer Company, BPA= Punwar quantity before Producer Company, APA=Punwar quantity after Producer Company, BSA= satawar quantity before Producer Company, ASA= satawar quantity after Producer Company.

PAIRED DIFFERENCES

T DF SIG.(2-TAILED)

MEAN STD. DEVIATION

STD. ERROR MEAN

95% Confidence Interval of the

Difference

Lower Upper

Pair 1

*BSGR - ASGR -23.324 31.070 3.612 -30.523 -16.126 -6.458 73 .000

Pair 2

BAR - AAR 11.216 31.074 3.612 4.017 18.416 3.105 73 .003

Pair 3

BBR - ABR 9.459 89.387 10.391 -11.250 30.169 .910 73 .366

Pair 4

BPR - APR 25.662 37.870 4.402 16.888 34.436 5.829 73 .000

Pair 5

BSR - ASR -22.014 44.541 5.178 -32.333 -11.694 -4.251 73 .000

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Table 23 : Descriptive Statistics of Prices of NTFPs

Source: SPSS 20

Table 24 : Paired Samples Test Statistics of Prices of NTFPs

MEAN N STD. DEVIATION

STD. ERROR MEAN

Pair 1PBSG 120.14 74 21.358 2.483

PASG 191.22 74 25.919 3.013

Pair 2PBA 41.42 74 6.648 .773

PAA 57.03 74 4.748 .552

Pair 3PBB 12.61 74 1.577 .183

PAB 21.32 74 .908 .106

Pair 4PBP 6.00 74 .907 .105

PAP 10.73 74 1.398 .162

Pair 5PBS 93.58 74 13.460 1.565

PAS 146.49 74 19.580 2.276

*PBSG= Price of Salai gum quantity before Producer Compnay, PASG- Price of Salai gum quantity after Producer Company, PBA= Price of Aonla quantity before Producer Company, PAA= Price of Aonla quantity after Producer Company, PBB= Price of Bael quantity before Producer Company, PAB= Price of Bael quantity after Producer Company, PBP= Price of Punwar quantity before Producer Company, PAP= Price of Punwar quantity after Producer Company, PBS= Price of Satawar quantity before Producer Company, PAS= Price of Satawar quantity after Producer Company.

PAIRED DIFFERENCES

T DF SIG.(2-TAILED)

MEAN STD. DEVIATION

STD. ERROR MEAN

95% Confidence Interval of the

Difference

Lower Upper

Pair 1

PBSG - APSG -71.081 36.595 4.254 -79.560 -62.603 -16.709 73 .000

Pair 2

PBA - PAA -15.608 7.806 .907 -17.417 -13.800 -17.201 73 .000

Pair 3

PBB - PAB -8.716 1.756 .204 -9.123 -8.309 -42.705 73 .000

Pair 4

PBP - PAP -4.730 1.715 .199 -5.127 -4.333 -23.730 73 .000

Pair 5

PBS - PAS -52.905 24.397 2.836 -58.558 -47.253 -18.654 73 .000

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Table 25 : Descriptive Statistics of Quantity of NTFPs

Source: SPSS 20

Table 26 : Paired Samples Test Statistics of Quantity of NTFPs

Source: SPSS 20

MEAN N STD. DEVIATION

STD. ERROR MEAN

Pair 1BAA 52.59 79 15.938 1.793

AAA 74.43 79 21.468 2.415

Pair 2BSA 12.87 79 10.039 1.129

ASA 19.53 79 14.992 1.687

Pair 3BPA 49.71 79 30.161 3.393

APA 58.67 79 44.898 5.051

Pair 4BBA 33.04 79 17.892 2.013

ABA 36.38 79 30.392 3.419

Pair 5BSGA 100.89 79 28.293 3.183

ASGA 119.24 79 16.700 1.879

PAIRED DIFFERENCES

T DF SIG.(2-TAILED)

MEAN STD. DEVIATION

STD. ERROR MEAN

95% Confidence Interval of the

Difference

Lower Upper

Pair 1

BAA - AAA -21.835 26.766 3.011 -27.831 -15.840 -7.251 78 .000

Pair 2

BSA - ASA -6.658 15.083 1.697 -10.037 -3.280 -3.923 78 .000

Pair 3

BPA - APA -8.962 50.608 5.694 -20.298 2.374 -1.574 78 .120

Pair 4

BBA - ABA -3.342 32.495 3.656 -10.620 3.937 -.914 78 .364

Pair 5

BSGA - ASGA -18.354 30.778 3.463 -25.248 -11.461 -5.301 78 .000

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ANNEXURE

Table 27 : Descriptive Statistics of Prices of NTFPs

Source: SPSS 20

Table 28 : Paired Samples Test Statistics of Prices of NTFPs

Source: SPSS 20

MEAN N STD. DEVIATION

STD. ERROR MEAN

Pair 1PBA 24.27 79 4.514 .508

PAA 75.06 79 9.076 1.021

Pair 2PBS 76.08 79 17.277 1.944

PAS 142.15 79 9.697 1.091

Pair 3PBP 10.58 79 1.287 .145

PAP 15.41 79 5.502 .619

Pair 4PBB 5.81 79 1.039 .117

PAB 14.28 79 1.073 .121

Pair 5PBSG 100.32 79 27.296 3.071

PASG 138.42 79 38.109 4.288

PAIRED DIFFERENCES

T DF SIG.(2-TAILED)

MEAN STD. DEVIATION

STD. ERROR MEAN

95% Confidence Interval of the

Difference

Lower Upper

Pair 1

PBA - PAA -50.797 11.814 1.329 -53.444 -48.151 -38.217 78 .000

Pair 2

PBS - PAS -66.076 19.834 2.231 -70.518 -61.633 -29.611 78 .000

Pair 3

PBP - PAP -4.823 5.523 .621 -6.060 -3.586 -7.761 78 .000

Pair 4

PBB - PAB -8.468 1.647 .185 -8.837 -8.099 -45.691 78 .000

Pair 5

PBSG - PASG -38.101 41.520 4.671 -47.401 -28.801 -8.156 78 .000

78

ANNEXURE

Table 29 : Financial Ratios, Definitions and Formula

RATIOS DEFINITION FORMULA

A. Liquidity Ratios

Measure the ability of the producer company to possess adequate cash to meet immediate obligations.

i. Current Ratio (CR) Measures the short-term liquidity of the company.

Current assets/ Current Liabilities

ii. Liquid asset to Total asset Ratio (LATA)

Measure liquidity in terms of total assets.

Liquid Assets/ Total Assets

iii. Acid-Test Ratio (ATR) Quick Training or near money Training.

Quick Assets/Current Liabilities

B. Inventory RatioMeasures the extent to which the net working capital financing the current assets.

Inventory/ Networking capital

C. Solvency Ratios Measures the financial soundness of the company.

i. Debt-Equity Ratio (DER) Known as leverage Ratio. Long term liability/ Net worth

ii.Fixed Assets to Owned Funds Ratio (FAOF)

Fixed Assets/ Owned Fund

iii.Total Liabilities to Owned Funds Ratio (TLOF)

Total Liabilities/ Owned Fund

D. Turnover Ratios Shows effectiveness of the assets utilized in the business.

i. Total Sales Turnover (TST) Number of times assets turned over in to sales.

Total Sales/ Total Assets

ii. Working Capital Turnover (WCT) Assess the efficiency of total WC employed in the business.

Total Sales/Total Working Capital

E. Profitability and Efficiency Ratios

i. Net profit to Total Asset Ratio (NPTA)

Shows overall efficiency of the company Net Profit/Total Assets

ii. Net Profit to Own Fund Ratio (NPOF)

Shows whether profitability is maintained or not Net Profit/Net Worth

iii.Net Profit to Fixed Asset Ratio (NPFA)

Shows contribution of fixed assets for profitability

Net Profit/ Fixed Assets

iv.Gross Ratio (GR) Shows how efficiently the gross income is earned

Total Expenses/ Gross Income

v. Efficiency of Capital Ratio (ECR)

Evaluate efficiency of Producer Company in terms of capital utilization

Paid up share capital/Annual sales value

79

ANNEXURE

Table 30 : Financial Ratio Analysis of Producer Company

RATIOS 2017-18 2018-19

Liquidity Ratio

CR 1.71 1.28

LATA 1.00 0.85

ATR 1.71 1.09

IR 0 .69

Solvency Ratio

DER 0.00 0.00

FAOF 0.00 0.00

TLOF 1.00 1.43

Turnover Ratio

TST 1.26 .53

WCT 1.26 .53

Profitability and Financial Efficiency

NPTA 0.02 0.01

NPOF 0.02 0.01

NPFA 0.00 0.00

GR 0.97 0.98

ECR 0.27 0.04

Financial Strength Ratio

NCR 1.00 1.00

RATIOS DEFINITION FORMULA

F. Financial Strength

Net worth (NW) Shows financial soundness of the company

Total Assets-Total Liabilities

Net Capital Ratio (NCR) Shows degree of liquidity to pay off long term liabilities

Total Assets/ Total Liabilities

Equity Capital Ratio Owner equity/Paid up share capital.

80

ANNEXURE

Table 31 : Awareness of Marketing Process - BoDs

Table 32 : Funds Provided by ADS for Working Capital and Operational Expenses

AWARENESS OF MARKETING PROCESS KARAHAL VIJAYPUR

Yes 60% 0%

No 40% 100%

S.NO. COMPONENT AMMOUNT (IN RUPEES)

1 Working capital 2,500,000

2 Furniture and establishments 200,000

3 Office Rent, Electricity, Stationary Expense (for 3 years) 288,000

4 Salary Provision for CEO (1) (for 3 years @ Rs. 35,000/- p.m.) 1,260,000

5 Salary Provision for Accountant (1) (for 3 years @ Rs. 15,000/- p.m.) 540,000

6 Salary Provision for Field Executives (4) (for 3 years @ Rs. 8,000/- p.m.) 1,152,000

7 Contingency Fund 60,000

Total 6,000,00

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LAYOUT A

LAYOUT A

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