Unlocking the potential of lac cultivation: A strategic approach to marketing dynamics using value chain mapping

Abstract

With India's immense lac resource potential, this diversified "low volume high value" crop serves as a sustainable source of income for the tribal community's existing livelihood options.Keeping this in view, the current study attempts to map the existing lac value chain of seedlac in the two major lac-producing districts of Jharkhand (Ranchi and Khunti) to understand its market dynamics and value addition.The analysis articulated the existence of two marketing channels in the study area (C1: Producer-Village Merchant-Wholesaler-Processor-Consumer and C2: Producer-Wholesaler-Processor-Consumer).Value chain mapping revealed that the maximum degree of value addition occurs in the processor stage.Although the level of value addition in both channels did not differ considerably, the lac grower's income was observed with a significant difference (75000 per quintal in channel I and 80000 per quintal in channel II).The findings stressed the need for strong policy integration in the existing value chain of lac to move this sector towards a profitable line.Capitalizing on the untapped potential of lac cultivation by strengthening the marketing structure and encouraging primary processing at the rural level through effective training and technology dissemination will significantly uphold the contribution of this potential sector to the livelihood security of these tribal lac growers.