Institutional scaling, MSP assurance, and value chain transformation in minor forest produce: Evidence from Chhattisgarh

Abstract

This study investigates the implementation and economic results of the Van Dhan Vikas Yojana (VDY) in Chhattisgarh using secondary data from TRIFED, CGMFPFED, and Ministry of Tribal Affairs publications (2018-2024). The findings reveal significant institutional scaling and market formalization in the Minor Forest Produce (MFP) sector. While Van Dhan Vikas Kendras (VDVKs) grew from 27 to 550 clusters, including over 7 lakh beneficiaries through over 10,000 Self-Help Groups, the procurement value jumped from ?50 crore in 2018 to ?1,200 crore in 2023. Chhattisgarh accounts for roughly 72% of national MSP-based procurement, with an annual quantity of purchases exceeding 46,000 metric tonnes. Tribal collectors' stable income is enhanced by commodity-wise analysis, demonstrating consistent volumes supported by systematic MSP modifications. With processed tamarind selling for four times the price of raw fruit, high-value commodities like tamarind, mahua, lac, and chironji have emerged as key forces behind value addition. Women account for over 68% of the collection activities and operate the majority of procurement centers, indicating strong gender engagement. Value-added turnover surpassed ?100 crore by 2023, with more than 180 branded products marketed across the nation. The findings imply that in the tribal forest economy of Chhattisgarh, MSP assurance, institutional aggregation, and decentralized processing have improved market integration, entrepreneurial growth, and income stability.