Mksp udyogini

Project Proposal
on
Securing the livelihood of marginalized
tribal community through a self
sustained model of Lac cultivation.
Head Office:
Udyogini
A-36, 2nd
Floor, Gulmohar Park
New Delhi-110049
Tele-Fax: 011 41651175
E-mail: mail@udyogini.org
Web: www.udyogini.org
State Office-Jharkhand
Udyogini
Business Development Services Centre
Vimalayan, 1st
Floor, 33-Saket Nagar
Kanke Road,Ranchi – 834008

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Securing the livelihood of marginalized tribal community
through a self sustained model of Lac cultivation
Project Title:: Proposal for securing the livelihood of marginalized tribal community through
a self sustainable model of Lac cultivation.
Proposed area of action: Proposed project will be implemented in 3 blocks of Ranchi namely
Bundu, Angara & Namkum.
Executive summary:
Udyogini has an experience of working with NTFPs in states like Madhya Pradesh,
Uttrakhand and started its intervention in Jharkhand in the year 2008 as a result of a feasibility
study conducted which revealed lac to be a major source of alternative livelihood through
NTFPs amongst the natives of Jharkhand.
However, the study also revealed a dismal situation wherein the communities were giving up
lac production dramatically given that the age old product was now unable to fetch them
enough returns.
When Udyogini intervened, it realized that there were several reasons for the advent of this
situation viz climate change, non-practice of scientific methods of lac cultivation suiting with
the changing climate hence leading to scarcity of brood1
. The situation in these communities
was depressing, given the minimal livelihood options these people had. Most worked as
agriculture or daily labourers while some often migrated to other states to earn themselves a
living. They did have a rich resource base of host trees but did not know how to optimally
exploit them.
Udyogini started its intervention with the Ministry of Panchayati Raj funded programme
called as Rural Business Hub. This project was successful to bring profits to around 750
producers. Motivated by the positive results, Udyogini has been working tirelessly since then
with various donours like Intel Foundation, Misereor (Germany), European Commission,
ICCO, NABARD and the like.
In the meanwhile, Udyogini engaged carried out its integral activity of forming Women
Enterprise Groups (WEGs) with individuals having the resource or potential to start small
enterprises. This was followed by developing a Package for Scientific cultivation of Lac (with
the support of technical experts like Indian Institute of Natural Resins and Gums, IINRG),
training materials for goat rearing, poultry, small enterprises etc, promotion of Community
Resource Persons for training and monitoring and establishing proper financial and forward
and backward market linkages for the enterpries. However, some of the lac producers
presently are also individuals who will get included into WEGs in due course.
1
Brood is the seed of lac required for inoculation on host trees for its propagation.

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In a tenure of 4 years, Udyogini has been able to reach to a scale of 5500 lac producers in 3
blocks of Ranchi and 1 block of Khunti district. Of these producers, 3500 have already
successfully demonstrated the practice and earned profits in Angara and Bundu blocks of
Ranchi and Khunti Block of Khunti district respectively. In Namkum block of Ranchi
district, 2000 additional producers have joined in April’12 with whom successful
demonstration of lac cultivation is yet to be achieved. Though this project is for working
with 4000 producers in Ranchi district but during the implementation of project (after
getting the success) we will up scale the model and replicate it in nearby district
named khunti with another set of 5000 producers.
Under the proposed project focusing on lac cultivation, Udyogini aims to achieve two major
objectives with the support of MKSP:
a) Federating the already functional 2000 lac producers into Institutions for value addition
of lac with 2000 producers already into production to achieve sustainability and
enhancement of income for the producers at the village level.
b) Promoting producers’ profits with 2000 new producers and also federating them into
Institution.
It is being felt by Udyogini now that since the producers have already started earning
enough profit, the community should come forward to take greater ownership. Hence, a
community owned producers’ Institution will help the producers to sustain in the long
run and take ownership of the activities. Also, now that brood sufficiency has been
achieved by the existing 2000 producers, a large amount of scrapped lac is available from
these areas along with the scrap that will come from the new 2000 producers, hence a
processing unit for initial level value addition to lac should be established here. The
institution in the form of Cooperatives would be established at the Block level, that is one
cooperative per block having all the members of WEGs (having a common interest in lac
cultivation) as members of the cooperative. The members of the cooperative would
consist of producers from villages per block. The cooperative would function in a rented
store house. It would perform the functions of Bulk purchase and sale of brood lac,
Market negotiations, loan provision to producers etc. The cooperative would receive
revenue for post project sustainability from 2% Commission per Kg of transaction of
brood or scrapped lac, annual membership fee from members and interest from the soft
loans provided to the producers.
Producers’ profit for new 2000 producers would be promoted through the provision of
training, handholding, financial and market linkages and ultimately federating them into a
cooperative as well. At the end of the project duration, producers will have 100%
increased production from the baseline and earn an average profit of INR 29175 annualy.
The value addition to lac at the Processing units with the existing farmers will also help
them gain small profits INR (1500-2000) initially which will increase as the production
and stages of value addition further increase with time.

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The per farmer cost comes to INR 6268 while 25% of the project cost has already been
committed through a sanction letter from Misereor (Germany), the rest 75% is requested
from MKSP. Total project cost is INR 25070000 for 3 years.

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Section A - Basic PIA Information
1 Name of PIA Udyogini
2 Legal Status (NGO / Network NGO / CBO / Producer Co.
/ Section-25 Co. / Pvt. Co/ Other – Please specify)
NGO registered under “Societies
Registration Act”
3 If Network NGO, number of partners being supported? NA
4 Registration No. & Date of Registration No.: S-23137, Date of registration: 09-
07-1992
5 Name of Donors in the past 3 years, if any (give max3) 1. Rural Bussiness Hub; Ministry of
Panchayati Raj.
2. INTEL Foundation
3. Misereor
6
Name with Size (Budget in INR) of relevant projects
handled in the past 3 years (give max 3) in the proposed
area
1. Rural Business Hub(Ministry of
Panchayati Raj, Government
of India) – INR 9,50,000.00;
Project duration: 2008-2010
2. Sustainable Livelihoods for
Tribal Women Producers
through
Enterprise Promotion and
Entrepreneurship Training( Intel
Foundation) – INR.
55,00,000.00; Project duration:
2010-2012
3. Market Development and
Enterprise Promotion for Poor
Women( Misereor) – INR
36,00,000; Project duration:
2010-2012
7 Annual Revenue of PIA for the most recent audited
financial year
Rs. 3,04,70,332
8 List ongoing projects (max 3.) and their Size (INR) in
the proposed area
1. Rural Innovation Fund for
Kusmi Lac Cultivation on Ber
host by NABARD of Rs.
9,85,000.00.

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2. Vocational education and
training for vulnerable and
marginalised groups by European
Commission of Rs. 75,00,000.00
3. Market Development and
Enterprise Promotion for Poor
Women( Misereor) – INR
63,00,000;
9 Completion of last project (MM/YY) March/ 2012
10 Total value of assets available with the PIA in the
proposed area?
Nil
11 Experience of working with, in the proposed area
(i) Women SHGs/Groups (Y/N)
(ii) NTFP based livelihoods with existing tribal
groups (Y/N)
(i) Yes
(ii) Yes
12 In the proposed project, what % of the implementation
will be undertaken by existing capacities and what % will
be leveraged from external community based
organizations in the project area?
Existing - 60%
External - 40%
Section B – Community Institution Architecture
1. Community Institutions Architecture
Past Experience of PIA in the proposed area
Udyogini as the name suggests works to promote women entrepreneurs majorly to ascertain
that women in rural areas get an opportunity to earn their own livelihood and hence prosper
socio-economically through small enterprises. For this purpose Udyogini works with Women
Enterprise Group (WEGs) consisting of 12-15 members each in the intervention
area/clusters. These Groups are formed with individuals having involved in enterprises like
lac cultivation, goat rearing, poultry, rural kiosks etc.
There are presently 520 WEGs working with Udyogini in Jharkhand only of which 217 have
been bank linked. These WEGs majorly:
 Engage themselves in lac production
 Establish Small enterprises
 Build their own corpus

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 Udyogini as an resource agency provides them entrepreneurial trainings in the form of
Grassroots management training (GMT) and Enterprise management training (EMT)
to strengthen their enterprise and cope up with the market fluctuations.
Best practices adopted by the women groups/producers groups promoted by the
organization:
Udyogini helped the producers internalize some ideas through practice which have now
emerged as the best practices of these groups:
 Proper maintenance of meeting minutes in group registers provided to them by
Udyogini.
 Reading out group norms in every meeting as mentioned in the printed Group
register to compel members to abide by the norms.
 Weekly meetings by WEGs to make them resilient to collapse.
 Conducting Functional Literacy classes for the Group members.
 Conducting Group motivational activities (Through Udyogini’s Women enterprise
Motivation module)
 In case of women not having access to own host trees, share cropping is promoted
amongst the group.
 Maintenance and checking of data card of each producer to keep track of lac
production quantity and quality by the WEGs.
Strategies undertaken in the past in enabling access to credit, technology and markets
through the women groups/federations:
Credit: These are the key aspects for lac cultivation. Initially Udyogini sensitized its producers
to take small credit support from their own WEGs to start lac cultivation. This has not only
made the things easier for the producers but also created a road for the WEGs to earn
interest and rotate their corpus for a very short span of time i.e. for 6 months. In the later
stage the beneficiaries were motivated to save and open bank accounts for meeting their
capital requirement related to Lac cultivation. Bank Linkages have been done to provide seed
capital to the corpus of the WEGs. The State Bank of India is preparing a special scheme for
Lac producers under which loans of Rs. 50,000 are offered to groups and individuals without
collateral.
Market: The backward and forward linkages have both been secured by Udyogini for the
producers. Agreements with two market players viz Tajna Shellac and Gopal Shellac Pvt Ltd
has been made to ensure the forward linkage of the product. The idea was to leverage suitable
price for the producers and also to break the vicious cycle of middleman and small traders
who cheated in price and weights measurement. While this provided the forward linkage, it
was also critical to meet brood supply for propagation of lac cultivation in a given situation

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where there is acute brood scarcity in the country. This is done through the establishment of
brood farms and exchange of brood within clusters of Udyogini.
(a) Proposed Plans/Strategies as part of the Project:
1. Proposed strategies to ensure implementation of the project community processes
including use of community resource persons :
Lac Business Development Service Providers (BDSPs): Udyogini has already created in
other lac producing areas it has worked in, a cadre of women which is called as Lac BDSPs
by Udyogini which are actually Community Resource Persons (CRP) who use PSCL for
outreach to larger numbers of producers on a fee-basis from the cooperatives, thus creating
an income source for themselves. These CRPs are well equipped with various other training
curriculums of Udyogini which were specially meant for people who are directly engaged in
livelihood and enterprise related works such as PSCL; Training for Enterprise support Team
(TEST) for gender-sensitive entrepreneurship; Grassroots Management Training (GMT) for
motivating and orientation of producers to undertake enterprise and livelihood activities.
Being from the community, these CRPs have the advantage of being more acceptable and
ensuring better learning processes in the community.
2. Systems and checks put in place to ensure that the local resource persons are
accountable to / managed by the women institutions:
Cooperatives pay CRPs: This is an in-built accountability mechanism as only if the
Cooperative is satisfied with the quality of service, after giving training to the CRPs, a
certificate would be issued to the CRPs confirming their capacity to train. The CRP’s
payment would be performance based.
CRPs selected from WEGs: Since the cadre of CRPs will be selected from within the WEGs
established by the village women, these CRPs would already have been ‘incubated’ in the
WEGs which are involved in lac production.
Sustaiability model of CRP’s:-
 CRP’s will be provided with social security through cooperatives.
 Cooperatives will utilize CRP’s in other assignments as and when required on
payment basis.
 CRP’s will get paid by the cooperative for supplying pesticides, insecticides and brood
to the producers.

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3. Plans to enable Smooth Accounting and Monitoring (internal and external):
Udyogini would follow a community owned initiative to channelize the Community Investment
Support to the producers. This would be done by transferring the total amount recieved by
Udyogini for brood purchase to the account of the Producer Cooperatives through cheques only.
The Cooperatives in turn would purchase brood and provide them to the producers on a
revolving loan basis that is the producers would have to return the amount of brood recieved by
them in one cycle to the cooperative in the next cycle for benefiting another round of producers.
This would also ensure brood sufficiency and help in meeting the huge amount of brood
constraint presently prevailng in the market. The producers would also be helped with the
purchase of equipments by the cooperatives only such as sprayers and sceteurs with preference to
the poorest of the producers.
The monitoring plan for the project is an in-built approach to enrich the project operations and
take timely corrective measures in case of negative deviations from project objectives. To ensure
focussed application of the monitoring process it has been divided at following levels –
Organisation Level Monitoring by the Project Coordinator for project progress. The
project monitoring will be based on –
 Field visits, observation and interaction with beneficiaries
 Tracking of field and office record
 Quarterly staff review meetings
 Periodic physical and financial progress reports
 Cluster based monitoring based on MIS. The overall monitoring of the activities of the team,
is evaluated through a structured and scientific software system i.e. www.vikasdwar.com/udyogini
,developed by an external software agency which is known as Management Information
System (MIS) that helps the Head office as well as the State Office to keep a track of the
progress of the project activities. This is an excellent way of tracking the progress of every
project based on the project activities and their indicators and thus evaluating the overall
health of the organization.. It helps the Head Office as well as the State Offices to keep a
track of the progress of the project activities thus, evaluating the overall work-status of the
organization. MIS workshops for keeping the MIS officers updated with the process of
working on it are conducted on quarterly basis.
Cooperative level Internal Monitoring:
Cooperative Review Meetings: Quarterly meetings to review progress will be conducted
convened by the board of the cooperative.
Inter-cooperative Review: Udyogini will institute an inter-cooperative-review system where
one cooperative will review the work of another cooperative and report the findings to the

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Federation. This will be cross-checked against the cooperatives self-assessment to create a
robust Federation of cooperatives around lac outcomes.
Producer Card: Each lac producer maintains a card in which details like the quantity of
brood inoculated, the due date for spraying of insecticides, pesticides, removal of phoonki
etc. This card helps the CRPs monitor the standing crop and handhold the lac producers
accordingly.
4. Briefly elaborate on systems/ and procedures that you propose to put in place for
adoption of best practices by the women institutions:
Since 1995, Udyogini promotes Anita Sen Memorial Award (ASMA) as an incentive for the
best performing group across all its states. This serves as a motivation for the group to work
harder as the group receives a sum of Rs. 50000 award money. Other groups following the
best practices are motivated through minor incentives like shields on the annual day
celebration function of Udyogini and an opportunity to address the masses about the group’s
experiences. Inter cluster and inter state exposure visits would also be conducted to give them
an exposure of the best practices being followed across all the states of Udyogini. Self analysis
of the group achievement would be promoted in within the best group by stimulating the
members to analyze what practices have helped them to excel while stimulating the members
of the bad performing groups to analyze what are the factors affecting their poor
performance.
The above activities would also be ensured in the present project to promote adoption of best
practices by the groups.
Section C – Operational Details
C1. Description Of Context:
a.Context of area and community:
The historical oppression of people belonging to Scheduled Tribe, Schedule Caste and Other
Backward Castes in India has no parallel in any part of world, wherein a person is not only
discriminated because of the caste he was born into, but also is forced into a predetermined
life and occupation. Any attempt to defy this is met with severe consequences and further
subjugation. Though this problem exists in most parts of India but nowhere is it so
predominant and blatant as it is in rural areas of BIMARU states and Jharkhand.
Ranchi district which we have selected to intervene with our model of Lac cultivation. These
two districts are considered as most backward and naxal affected areas among the 24 districts
of Jharkhand. 94% and above community members to be addressed through this project are
from tribal community. These areas are far away from the development and people here are
forced to live in the dearth of poverty. People belonging to Scheduled Tribes have to face
discrimination. The only opportunity for employment is menial work in the field; that too at
rates which are highly exploitative. Often women are subjected to physical and sexual

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harassment at their work place because of their extreme vulnerability and poverty.. Although
they have accessed credit facilities with the help of WEGs their chances for economic
improvement is limited because of lack of market access, enterprise skills, skills to aggregate
and add value to their products and lack of access to agricultural services to improve
productivity so that they can earn more profit. All these factors form a vicious cycle of
poverty, and there is need of immediate intervention to break this. This condition has
remained there for a very long time, and it may remain same until interventions enable
change.
Proposed project will be implemented in three blocks of Ranchi district namely Angara,
Bundu and Namkom. All the blocks are of same topology and climate condition is favorable
for Lac cultivation.
b. Problem Analysis:
The following problems during the feasibility study conducted by Udyogini and from our
previous experiences were glaring enough to motivate Udyogini into working with the
communities in Jharkhand on lac cultivation:-
Marginalization of Tribal Communities, especially women: The incomes of tribal
people are largely dependent on natural resources - forests and land. Population led
pressures lead to several problems in both these two sectors - depletion of forests and loss
of bio-diversity; and low productivity of land. Tribals own land but it provides income for
barely 3 months in the year. They have to migrate out of the area in large numbers for work
in exploitative conditions in industries such as construction. This disrupts family life,
especially the lives of children in the family.
Insurgency and Unrest: Forty per cent of India's top 50 mineral-rich districts, many of
them in Jharkhand, are insurgency-affected, according to the Centre for Science and
Environment (CSE). They are also the hubs of tribal discontent. Though Jharkhand, because
of its mineral wealth, should be able to provide sustainable livelihoods to its poor people, it
is one of the 13 states in the country hit by Maoist insurgency that prevents government and
private services from reaching its people in the affected districts.
Poor harvesting and production techniques: There is a paradoxical situation of
underutilized capacity of forests to generate income on the one hand and destruction of
entire trees to extract a part of the resource from them. In the production of a traditional
product lac, poor harvesting and systems of production are majorly due to reasons like lack
of awareness, motivation, extension services, and unavailability of working capital,
insufficient and untreated brood lac (insect brood), lack of strong producers associations and
lack of marketing institutions have constrained this sector.

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Informality and Unfairness along the value chain: One of the reasons for unsustainable
harvesting is intermittent market access. Tribal communities, being in interior areas and
having little access to the market due to poor road connectivity and awareness of market
demand and prices, heavily depend on traders to come to their locations to procure the
forest products.
Poor entrepreneurship skills to improve returns all along the chain: Udyogini’s
experience of working with women in order to move them up the value chains has shown
that most women are constrained in motivation, skills and infrastructure to be able to
become entrepreneurs in the professional sense, i.e. able to think and act innovatively, and
be managers and leaders that can make their businesses grow.
No efforts have been taken in past to engage producers for round the year in lac
cultivation so as to maintain their interest in the activity and also fetch handsome income.
One of the major lacking is absence of any institutional model in the state to sustain lac
cultivation and ensure community ownership to take forward the theme.
c. Opportunities:
Our Presence: The greatest advantage for Udyogini is its presence in these communities
since a duration of 4 years and the demonstration of success with the lac producers already
made. This has helped us gain the confidence of the communities and even gives us a buffer
against the much feared insurgency issues since the community now realizes the worth of
this activity. In the duration of our work with the common interest SHGs, it becomes easy
to identify Community resource persons from within the groups with which there is
constant interaction of the staffs. Such Community Resource Persons (CRP) chosen so far
have proved to be highly motivated cadres of people who have contributed significantly in
making the community achieve its goals. The ratio of Community Resource Person to
Producers is 1:50. In the present project, it should thus be equally easy to identify these
CRPs from amongst the SHGs.
Proven Model: Udyogini has already proven a model successfully with 3500 producers in
Ranchi and Khunti district whereby the producers have already attained brood sufficiency,
are engaged in year round production and also earn profits.
The Market: Jharkhand is the largest Lac producing state (Data source: Lac statistics 2010,
IINRG, http://ilri.ernet.in). It accounts for nearly 42% (6925 tonnes out of 16495 tonnes) of
all India’s production of lac. Export of lac from Jharkhand, estimated at Rs.50 crore
annually, accounts for about 53 per cent of lac exports from India. There is a major lac
exporter in Jharkhand, Shellac Industries, who is willing to take as much lac as is possible to
produce. The owner says his problem is supply not demand. Besides, Shellac, there are a
number of others in the neighboring state of W. Bengal which is even a bigger market for lac

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than industries in Jharkhand. An interview with one of the local traders by Udyogini revealed
that he was willing to purchase as much lac as can be produced in the market.
Cultural affinity and resource: The tribal community in Jharkhand has been cultivating lac
traditionally since time immemorial. The cultivation practices are traditional and are passed
on from generation to generation. The producers in areas of the country which have lac have
an average of 20-50 host trees though due to lack of finance and understanding of practices
they don’t even practice lac in 50% of their trees. In the case of the area in which Udyogini is
working with lac producers, 20% of producers had completely stopped doing lac because of
infestation problems and they did not know the solution for it.
C.2 Project Description:
a. Vision of Success:
Aspired vision of the project is to meet brood sufficiency in the lac production sector
through scientific techniques of lac cultivation and proper market linkages.
b. Goals: The Project Goal is to establish Lac as a key product for supplementing the
income of rural poor through creation of a sustainable model and hence bringing them one
step forward towards becoming key players in an important growth-oriented product.
c. Key Outputs/outcomes:
1. Essential Outcomes:
 120 new WEGs formed with new 2000 producers.
 At least 3 Cooperatives are functional and efficient by the end of project period.
 At least 4000 producers practicing scientific cultivation of lac and earning additional
income of Rs. 25000 from their baseline income.
 Exposure visits conducted for CRPs and Producers.
 At least 80 CRPs (1 per 50 producers) created and functional.
 Brood sufficiency achieved for 4000 producers of lac.
 Plantation of semialata plant done in 150 acres of land successfully.
 Market linkages established with MoU done for the produce (brood and value added
lac) to get sold at fair price in the market.
 Social Audits done on half yearly basis to maintain transparency in dealings.

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C.3 Detail of proposed strategy:
1. Plans for promoting and enhancing food and nutritional security for women
farmers?
1. Udyogini has already established 51 crèches facilities for the children of the lac
producing women in the project area to be covered under MKSP with the support of the
Central government funds under Rajiv Gandhi National Crèche Scheme. These centers
not just provide care to the children of the lac producing women, hence affecting their
productivity positively but also provide supplementary nutrition to their children everyday
along with monthly health check-ups and ensuring routine immunization.
2. Moreover, in every monthly meeting held with the mothers at these crèches, the topics
like importance of nutrition during adolescence and pregnancy for the female is especially
emphasized while special days and weeks like breast-feeding week etc are celebrated to
enhance the awareness levels. Udyogini would try to increase the number of crèches to
atleast one per project village and train the crèche teachers to carry out trainings of
mothers.
3. Areas where crèche facility would not be implementable, the BDSPs to be selected per
village would facilitate the women producers to understand the need for adequate
nutrition to enhance their own productivity as well as the family’s overall well-being and
plan how to set aside a part of their increased income for availing better nutritional
facilities.
4. The BDSPs and crèche teachers would be given training on half-yearly basis on specific
topics like cost-effective nutritional food planning, nutritional need of children and
adolescents, gender and the role of nutrition in growth etc.
5. Cost-effective and easy to grow nutritional crops would be promoted through kitchen
gardens with atleast 50 kitchen gardes (20 in 1st
year of project period and 30 in 2nd
year of
project period) which will act as model for replication by each and every producer by the
end of the project period.
6. Strategies addressing sustainable/evergreen/regenerative agriculture practices:-
Following are the strategies proposed for regenerative and sustainable lac cultivation
practices:-
Host Plant Management:- Proper host management practices will be incorporated
which will give optimal rest to the host plants for getting maximum production.
Seed Management:- Producers will be mobilized to rotate their brood(seed) among the
other producer rather than scraping and selling it to the factory in order to meet the
brood requirement.

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Bio-diversity enhancement:- Protection and plantation of new host plants in the
project area will help in conservation of bio-diversity. Lac cultivation on semialata is done
in inter-cropping mode which again adds to it.
Low cost sustainable practices:- In scientific cultivation practices producers are taught
to use the brood as per the requirement of the twigs. This practice will help producers to
low down their input cost and get more return of the investment.
Resilience to climate change:- Climate change is a big threat noticed during past 8-10
years influencing the lac production. Huge fluctuation in temperature lead to activation of
various parasites. Timely spray of fungicides and insecticides
Ber
(July-January)
Kusum
(Jan. –July)
Semialata
(July-Jan.)
Brood rotation strategy for kusumi lac
cultivation
Palas
(April-
October)
Palas
(Oct. – April)
Palas
(April-
October)
Palas
(Oct. – April)
Brood rotation strategy in Rangini
crop

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The following table below shows different roles of women and men with regard to
Lac cultivation:-
Gender based role classification in Lac cultivation
Sl. No. Activity Sub
activity/Host
Involvement
of Women
Involvement
of Men
1 Host plant
management
Plantation √ √
Pruning √
Selection √
Grading √
2 Bundling of Brood √
3
Inoculation of Brood
On Ber √ √
On Kusum √
On Semialata √
On Palas √ √
4 Funki Removal On Ber √ √
On Kusum √
On Semialata √
On Palas √ √
5 Spraying √ √
6 Harvesting On Ber √ √
On Kusum √
On Semialata √
On Palas √ √
7 Scraping Of funki √
Of rejected
brood
√
8 Sorting √
9 Packaging √ √

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7. Strategies for Development of pro poor value chain around NTFP collectors
ensuring increased access to market and market information for better marketing
of their products-
i. What are the key livelihoods of the tribal community in the proposed area:
The key livelihood options for the tribal in the proposed area are:
1. Agriculture (seasonal)
2. Agri –allied activities like goat rearing, poultry, pig rearing etc
3. NTFP collection and sale
4. Small trading
5. Group or individual micro enterprises
6. Agricultural and wage labourer
7. Service like blacksmith, hair cutting, carpentry, small shops
ii. Primary analysis of the value chains of some of these key livelihoods:
Since Udyogini in Jharkhand is concentrating
upon lac value chain only, the analysis of it is
as follows:
The pyramidal structure of the value chain
involves the producers/villagers at the lowest
rung, from where the village produce directly
goes to the village level traders and then to
the Block Level traders, ultimately reaching
the producers in a much adulterated manner.
The worst irony is the profit distribution
chain where in spite of the tedious efforts, 30% of the profit margin goes to the intermediaries
while the producers have to suffice with a mere 70% only because the producers neither have
bargaining power nor do they have sufficient market knowledge or access.

P a g e | 18
iii. Analysis of the value chain gaps:
As far as Lac as a product is concerned the gaps are found in each level which are cited below;
Primary producer level:
 The farmers use unsophisticated inoculation and harvesting techniques. Despite their
proximity to IINRG, they lack knowledge of basic information such as what length they
need to cut and what is the best way of pruning the plants.
 Drying is done anywhere in the fields, rather than in clean platforms, leading to reduction
in quality of lac.
 Standard measurement practices are not followed. Measurement tools are in fact not used
at all in many cases.
 There is no concept of aggregation of lac at the village level. All the produce is aggregated
by the intermediaries.
Intermediaries:
 It was difficult to get exact price information from intermediaries and they are not trusted
entirely by producers or by the factory owners.
 Adulteration at the intermediary level is a widespread and common practice. This brings
down the price of lac and is detrimental to sustainable supplies in the long run.
 Intermediaries try to work on scale. However, they too lack adequate funds to store the
purchase, and hence try to sell their produce the same day, leading to increased
transportation costs. This reduces even their scale potential.
Factory owners
 Factory owners find it difficult to give an accurate price of lac due to widespread
adulteration by intermediaries.
 Since the supply of lac has been sporadic, it is difficult for them to maintain a stable price
even during a season.
 Other ecosystem factors such as threat of naxals, that disrupts supply, also make it
difficult for the owners to operate fairly themselves on assessing lac quality and price.
iv. Proposed interventions for moving up in the value chain- production, processing and
marketing
To ensure better market access to the producer Udyogini has created a supply chain
model for its intervention areas. Earlier the producer was primarily responsible for the
production, harvesting and sale of the Lac crop. The value chain established by Udyogini
then performs the function of accumulation and transportation of the crop. The traders

P a g e | 19
or factories then buy and process the Lac into various products in order to market and
sell them in both national and international markets
Udyogini has created a social enterprise through community participation making the idea
unique as it ensures a higher ownership & social capital along with financial gains unlike
the conventional approach. The enterprise operates on a supply chain model where few
community anchors like Women Enterprise Group members or Business Development
Service Providers take up entrepreneurship roles at village level service centres and help
in aggregation of produce at each village from where it gets aggregated at a larger volume
and gets sold directly to the processing units , hence accruing greater margins for the
produce to the producers. (see figure).
This whole Supply chain model is backed by resource agencies, CBOs, Community
resource persons, PRI etc.
8. Targeting:- Approach and Details on landless, small and marginal farmers as
project participants:-
This activity is only taken up with poor farmers, 85-90% tribal residing near forest fringes.
These farmers are generally small or marginal with minimal capacity to produce food
grains but resources in the form of host trees for lac cultivation. However, it will still be
ensured that the farmers chosen for this activity should belong to the poorest of the
families in from the community.
9. Plans for Post-project Sustainability and Scaling-up strategies
At Udyogini we believe in community ownership of the project and a proper withdrawal
strategy by forming institutions (Cooperatives at every Block)owned and operated by the
Re-configuringthe ExistingValue Chain
PRODUCERS
Self Help
Group
(SHG)
Self Help
Group
(SHG)
Self Help
Group
(SHG)
Village-
Level
Service
Center
(VLSC)
Village-
Level
Service
Center
(VLSC)
Processing
Unit
Cluster-
level
Service
Center
P
r
o
c
e
s
s
o
r
s
Udyogini’sSupport
UdyamJagranSansthan(UJAS)
InstitutionalSupport(IINRG& LAC)
PRIs

P a g e | 20
member lac producers from the community. The focus is thus on capacity building of the
members of these institutions to take forward the theme in a sustainable manner.
CRP’s promoted through this project will be key to the sustainability. Capacity of these
CRP’s will be built in such a manner that they will be able to deliver to the community on
all the fronts and get their honorarium from the cooperatives based on their performance.
Capacity of community will be enhanced to deal with the credit needs and other
requirement of the community.
10. Plans aiming at drudgery reduction for women farmers
Equipments: Earlier, women could not participate in pruning because the implement
used was heavy and blunt and more a traditional axe. Udyogini is providing and
encouraging the wider use of secaturs to replace the traditional implements. Secaturs
are medium-size scissors for easy use by women.
Fleminga Semialata host plant: This plant is women-friendly because it is shorter in
height than the traditional Ber and Kusum. This is going to be wide promoted and
used by Udyogini its project areas for brood development and increasing women’s
labor force participation in lac value chain for creating brood. This can also be
promoted in kitchen gardens reducing the burden of headloading for carrying
equipments, inoculation of trees and aggregation.
Creches: UJAS Society (a sister concern of Udyogini) is running crèches for lac
producers where we are currently working. These provide needed drudgery reduction
as while working, women have a place for leaving their children for quality care and
nutrition.
Helmets for security: Helmets will be provided to each producer to ensure their safety
during pruning of trees and harvesting of Lac from tree.
11. Knowledge and information dissemination:-
Documentation: Best practices by farmers in this area will be recorded, published &
circulated in the community by using the services of Digital Green.
Workshops: Udyogini will produce the documentation in the above form and disseminate
at the workshops planned under this project. The workshops will bring cooperative
members, CRPs, entrepreneurs, other stakeholders and experts to share lac practices and
promote it for scale in the future.
Public Display boards:- Display boards will be placed at the entry point of each of the
target villages which will contain information about the project physical and financial
targets and amount of money to be spent on it. We will also place boards at each of the
plantation sites.

P a g e | 21
Use of Community Radio:- Community Radio will be used to disseminate knowledge and
information about the project.
12. Plans for increasing access of credit to women farmers and women groups
WEGs-bank linkage: Since WEGs are being promoted, Udyogini will facilitate the groups
to be linked to banks under the WEG-Bank Linkage program.
Special Bank Scheme: The State Bank of India is preparing a special scheme(with
Udyogini) for Lac producers under which loans of Rs. 50,000 are offered to groups and
individuals without collateral. If it is found workable, lac producers supported under
MKSP will be linked to this scheme.
13. Please elaborate on the direct ‘incremental’ income (returns) to women farmers
through proposed project. The incremental income should be sustainable.
There would be an incremental income to existing producers of INR 1350 through the
initial value addition work proposed at the lac processing unit. Although the incremental
income is not very significant, this will however help to build sustainability into the
institution (analysis attached in annexure) as this will also be one of its sources of revenue.
The incremental income of the producers will however, also increase with the increase in
their production capacity of lac. Hence, in the following years, their income would further
increase.
The new 2000 producers would have an income of INR 29,175 (details attached in
annexure) from baseline through lac cultivation.
14. Linkage with other government schemes:-
On the basis of the proposed project, Udyogini will mobilize other government projects
as per the need and demand of the community. We are already well ahead in dialogue
with JASCOLAMPF(An apex Co-operative institution sponsored by government of
Jharkhand) in providing infrastructure and financial support to our groups

P a g e | 22
C. 4 Project Implementation Strategy:-
i. Internal Structure of Implementation:-
ii. Elements of Implementation process:-
Following are the part of project implementation strategy:-
 First year of implementation would mainly focus on building the capacity of producers
on scientific method of lac cultivation as well as organizing them in groups
 Focus of the project is to build a self sustainable institutional model of replication so we
will build a Cooperative which will then act to keep the process going.
Product Head-Lac, Udyogini
Master trainer Cluster co -
Ordinator
Accounts and Admin
CEO - Co Operative
CRP Self Help
groups(livelihood)
Head of Operations,
Udyogini

P a g e | 23
 Each and every producer will be provided with the equipments required for scientific
method of Lac cultivation.
 Creating an enabling environment through forward & backward linkages to achieve
economies of scale to bargain with market.
 Recording the best practices & knowledge dissemination through organizing kisan
melas on yearly basis.
 Monitoring & evaluation of project by conducting internal/external audits, half yearly
social audits.
 Funds required for purchasing of brood and equipments will be routed through the
institution along with the support to the CRP’s.
iii. Geography and Yearly Distribution:-
Proposed project will be implemented in Ranchi districts of Jharkhand state. Yearly distribution will
be as follows:-
This project will be implemented in 3 years as per the below time line:-
Physical targets of existing producers
Sl. No. Year No. of
Producers to
be covered
1 1st Year 2500
2 2nd Year 1500
3 3rd Year
TOTAL 4000

P a g e | 24
Budget Narrative:-
The Table:1 below shows the budget summary for different Components of the project to be
achieved.
Table:1
Udyogini-MKSP Budget Summary Sheet
Sr.No Components Amount (INR)
A Project Inception 350000
B
Institution Building 1812000
C Capacity Building 4634900
D Community Institution Support 14850000
E Knowledge Management 870000
F Monitoring & Evaluation 1300300
G Administrative Expenses 1252800
Total 25070000
The Table 2 below shows the budget summary in form of contribution from various sources for the
project. The total project cost is INR 25070000, of which 5% is administrative expenses while 95%
is the total program cost. Of the total amount, 75% contribution is being proposed to Ministry of
Rural Development through Mahila Kisaan Sashaktikaran Pariyojna amounting to INR 18802500,
while rest 25% has been agreed upon by a Germany based donour Misereor amounting to INR
6267500 through its sanction letter2
over the three year duration of the project.
Table:2
Budget Summary (Contribution %)
Total project Cost 25070000
% of Administrative Expenses 5%
Program cost 95%
Contribution Requested From MoRD 18802500
% Support required from MoRD 75%
Contribution from Misereor 6267500
% Support from Misereor
25%
2
Sanction letter by Misereor attached in the annexure.

P a g e | 25

MKSP Standard Budget Template
Yr1 Yr2 Yr3 Total
No.of mahila kisan/NTFP collectors 2500 1500 4000
No.of producer groups 167 102 269
No.of villages 28 34 62
No.of Blocks 2 1 3
No.of Districts 1 1
S.No Component
Unit Description
Physical Outlay (No.of units
planned)
Unit
Cost
Financial Outlay
Remark
s
Project Cost Yr1 Yr2 Yr3 Total Yr1 Yr2 Yr3 Total (Rs)
Central
Share (Rs)
State/PIA
Share/
Other
funding
agency
(Rs)
1 Project Inception
1.1 Mahila Kisan profiling
No.of mahila
kisan 2500 1500 50 125000 75000 200000
262500 87500
1.2 DPR Preparation lumpsum 1 25000 25000 25000
1.3 Technical protocols documentation lumpsum 1 25000 25000 25000
1.4
Value-chain Studies
(On value addition processing at
institution level) lumpsum 1 100000 100000
A Subtotal 350000 262500 87500
2 Institution Building
2.1
Mobilisation & Promotion of
producer groups
No.of producer
groups 167 102 3000 501000 306000 807000
1359000 4530002.2
Promotion of producer group
federation
No.of producer
federations 2 1 15000 30000 15000 45000

P a g e | 27
(Registration and legal procedures)
2.3
Management support to producer
federation
(Salary support to CEO and
Accountant cum data entry operator
for 2 instituion in one year and three
from second year onwards) Months 24 36 36 10000 240000 360000 360000 960000
B Sub total 1812000 1359000 453000
3 Capacity Building
3.1
Printing of existing training materials
for circulation to CRPs No. of copies 80 500 40000 0 0 40000
3476175 1158725
3.2
Training module development :
audio-visual
No.of training
modules 1 74900 74900 0 0 74900
3.3
Training equipment & material
(Purchase of secutier and sprayer for
CRPs demonstration) Nos 20 4000 80000 0 0 80000
3.4
6 day residential Training to CRP in
IINRG on PSCL every year No.of CRP 40 80 80 3000 120000 240000 240000 600000
3.5
One day training in three block to
the producers by Block Cooperative
Officer on importance and
functioning of Cooperatives No. of trainings 3 3 10000 30000 30000 60000
3.6
One day training to executive
committee(EC) of cooperative on
cooperative management
No. of EC
members 22 33 33 1500 33000 49500 49500 132000
3.7
Exposure visit of Executive
Committee to any successfully
No. of EC
members 22 33 33 2000 44000 66000 66000 176000

P a g e | 28
functional cooperative within state
3.8
Training to CRP on Semia-Lata
Plantation by IINRG No. of CRP 40 80 80 500 20000 40000 40000 100000
3.9
Training on PSCL(4 modules) to 2000
new producers carried out in phases
No.of
community
members 500 1500 600 300000 900000 1200000
3.1
Training to leaders & PRI on Social
Audit No.of leaders 60 120 120 200 12000 24000 24000 60000
3.11
Exposure visits of CRPs to immersion
sites
(Inter state exposure to other areas
of Lac production in India) No.of CRPs 40 80 40 2500 100000 200000 100000 400000
3.12
Exposure visit of selected
community members (50 every year)
to IINRG field
No. of Mahila
kisan 50 50 50 200 10000 10000 10000 30000
3.13
Exposure visit of Community to
immersion sites
(7 producers from each block (total
21)will visit MP to see Lac
production by Mr. Moni Thomas)
No.of mahila
kisan 21 2000 42000 42000
3.14
Service charge to CRP (Excluding the
resource fee received by them as
trainers) No.of CRPs 40 80 1000 480000 960000 0 1440000
3.16
Traning of creche teachers and
BDSPs on food security and
nutriotional need of family
No. of Creche
teachers/BDSPs 2 2 2 6 25000 50000 50000 50000 150000
3.17 Promotion of Kitchen Garden Nos 20 30 0 50 1000 20000 30000 0 50000
C Sub total 4634900 3476175 1158725

P a g e | 29
4 Community Investment Support
4.1
Community Infrastructure
(Store house for 3 institutions on
rent)
No.of
Infrastructure
units 2 3 3 1000 24000 36000 36000 96000
11137500 3712500
4.2
Inputs to the mahila kisan (grant)
Purchase of Sprayer@1 per 5
producer No. of units 100 300 2800 280000 840000 1120000
4.3
Purchase of Seceteurr @1 per farmer
for new farmers 500 1500 250 125000 375000 500000
4.3
Purchase of brood @ 7kg/farmer for
new farmers for 1 cycle as loan by
producer group
Number of
farmer 700 1300 3400 2380000 4420000 6800000
4.4
Operational Fund of Producer
federation
No.of producer
federations 2 3 3 48000 96000 144000 144000 384000
4.5
Helmet to each producer
(For drudgery reduction) No. of producer 2500 1500 250 625000 375000 1000000
4.6 Semia lata plantation in 150 acres Acres 75 75 33000 2475000 2475000 4950000
D Sub total 14850000 11137500 3712500
5 Knowledge Management
5.1
Identification of best practices
(Through cross learning visits) Lumpsum 3 3 3 5000 15000 15000 15000 45000
652500 217500
5.2
Documentation of best practices
(Through print and electronic media
using Digital Green) Lumpsum 1 1 1 100000 100000 100000 100000 300000
5.3
Dissemination of best practices
(Through kisan Mela and Award Lumpsum 2 2 2 50000 100000 100000 100000 300000

P a g e | 30
ceremony)
5.4
Yearly workshop at state level with
different stakeholders lumpsum 1 1 1 75000 75000 75000 75000 225000
E Subtotal 870000 652500 217500
6 Monitoring & Evaluation
6.1
Baseline survey
(At the beginning of project period)
No. of HH to be
covered 4000 75 300000 300000
975225 325075
6.2
Endline survey
(At the end of project period)
No. of HH to be
covered 4000 100 400000 400000
6.3
Independent evaluation studies
(Hiring external consultant for mid
term and end term evaluation) No. of Studies 1 1 150000 150000 150000 300000
6.4
Public information disclosure
(display boards)
No.of
information
disclosure
sites/places 65 50 1220 79300 61000 140300
6.5 Social Audit
No.of social
audits 4 6 6 10000 40000 60000 60000 160000
F Sub total 1300300 975225 325075
7
Administration Expenditure
(Maximum 5% of total project cost)
7.1 Staff salaries Monthly 24 24 24 14000 336000 336000 336000 1008000
939600 313200
7.2 Travel & conveyance Monthly 12 12 12 5000 60000 60000 60000 180000
7.3 Stationary Monthly 12 12 12 800 9600 9600 9600 28800
7.4 Communication Monthly 12 12 12 1000 12000 12000 12000 36000
G Sub total 1252800 939600 313200

P a g e | 31
H Grand Total (A+B+C+D+E+F+G) 25070000 18802500 6267500
Training schedule
S.
N
o Theme
Name &
Description of
training module
(Book keeping/
food
security/marketi
ng etc.,)
Location
of
training
(If village
/ cluster
/ block /
district
/out-
station)
Type of
Trainee
(Commuity
/CRP/Para-
profession
al)
Type of
Trainer
(External
expert/Pr
oject
staff/Para
-
professio
nal/CRP) No.of batches
No.of
traini
ng-
days/
batch
Optim
um
No.of
traine
es for
each
batch
Unit cost
for
delivering
the
training
module
(Cost Per
batch) Cost of training (Rs)
Total
No.o
f
train
ees
Cost per
particip
ant per
day
Year 1 Year 2 Year 3 Total Year 1 Year 2 Year 3 Total
A B C D E F G H I
J=(G)+
(H)+(I) K L M
N=(G)
x(M)
O=(H)x
(M)
P=
(I)x(M
)
Q=
(N)+(O
)+(P)
R=(J)
x(L) S= (Q)/®
1
Techni
cal
protoc
ols
6 day residential
Training to CRP in
IINRG on PSCL
every year District CRP
External
Expert 1 2 2 5 6 40 120,000
12000
0 240000
24000
0
60000
0 200 3000
Training to CRP
on Semia-Lata
Plantation by
IINRG District CRP
External
Expert 1 2 2 5 2 40 20000 20000 40000 40000
10000
0 200 500

P a g e | 32
Training on
PSCL(4 modules)
to 2000 new
producers carried
out in phases Village Community CRP 20 60 0 80 4 25 15000
30000
0 900000 0
12000
00 2000 600
2
Livelih
ood
Institut
ion
Buildin
g
One day training
in three block to
the producers by
Block
Cooperative
Officer on
importance and
functioning of
Cooperatives Block Community
External
Expert 3 3 0 6 1 200 10000 30000 30000 0 60000 1200 50
One day training
to executive
committee(EC) of
cooperative on
cooperative
management District
Executive
members
of
cooperativ
e
External
Expert 2 3 3 8 1 11 16500 33000 49500 49500
13200
0 88 1500
3
.
1
Others
(Specif
y)
Training to
leaders & PRI on
Social Audit Block
Natural
leaders &
PRI
members
External
Expert 2 4 4 10 1 30 6000 12000 24000 24000 60000 300 200
3
.
2
Others
(Specif
y)
Training to
Creche
teachers/BDSPs
on food security
enhancement
and nutritional District
Creche
Teachers/B
DSPs
External
Expert 2 2 2 6 1 32 25000 50000 50000 50000
15000
0 192 781.25

P a g e | 33
need
management.

P a g e | 35
Activities Purpose/Objectives Output/Outcome
Project Inception
Mahila Kisan profiling To understand the
current socio-
economic conditions
and capacity
building needs of
the women
producers.
Ability to select the
most needy women
producers and
design capacity
building trainings
accordingly.
Value-chain Studies
(On value addition processing at institution
level)
To understand the
present value chain,
identify its gaps and
determine gap filling
strategies.
A re-defined value
chain with better
returns at the
producer levels
along with value
addition.
Institution Building
Mobilisation & Promotion of producer
groups
To organize
producers into
groups and hence
reap benefits of
collective
production.
Producer group
becomes organized
and realizes the
benefits of
federating.
Promotion of producer group federation
(Registration and legal procedures)
To provide legal
entity to collective
and hence build
their capacity.
The Producer
federation becomes
stable and
sustainable in the
long run.
Management support to producer federation
(Salary support to CEO and Accountant cum
data entry operator for 2 instituion in one
year and three from second year onwards)
To facilitate the
federation in self-
management and
hence run
independently.
The federation
becomes a self-
managed producer’s
organization for the
maximum benefit of
its producer
members.
Capacity Building
Printing of existing training materials for
circulation to CRPs
To train CRPs on the
PSCL (Package on
Scientific Lac
Cultivation)
The CRPs become
trained individuals
spreading the
knowledge of lac
cultivation fast and
wide which reduces
the training cost of
the producer
federation in the
long run as the CRPs
become agents
working on
commission.
Training module development : audio-visual To enable producers
to learn techniques
of lac production
easily and CRPs
Community
learned and
practicing PSCL.

P a g e | 36
demonstrate to the
community more
comfortably.
Training equipment & material
(Purchase of secutier and sprayer for CRPs
demonstration)
To enable CRPPs
demonstrate PSCL
Community
learned and
practicing PSCL.
6 day residential Training to CRP in IINRG on
PSCL every year
To orient CRPs on
PSCL by expert
trainers of IINRG.
CRPs become
trained individuals
for further training
dissemination in the
community.
One day training in three block to the
producers by Block Cooperative Officer on
importance and functioning of Cooperatives
To orient producers
on the benefits of
cooperative
Producers organize
themselves into
cooperatives and
hence get better
returns for their
production.
One day training to executive committee(EC)
of cooperative on cooperative management
To train the core
management group
on better
management of the
cooperative
The management
group becomes
capable of managing
the activities of the
cooperative.
Exposure visit of Executive Committee to any
successfully functional cooperative within
state
To train the core
management group
on better
management of the
cooperative
The management
group becomes
capable of managing
the activities of the
cooperative.
Training to CRP on Semia-Lata Plantation by
IINRG
To orient CRPs on
semialata plantation
for further
promotion of the
host plant.
Semialata plantation
and cultivation of lac
on it leads to
reduced drudgery of
women producers
and better produce
due to better
management of host
plants.
Training on PSCL(4 modules) to 2000 new
producers carried out in phases
To increase producer
base on lines with
scientific techniques
of lac cultivation.
Producer base
increased by 2000
new producers
practicing lac
cultivation by
scientific techniques.
Training to leaders & PRI on Social Audit To orient the local
natural leaders, other
stakeholders and PRI
functionaries to
carry out social audit
of the programme.
Transparency of the
proramme is
maintained and
hence the
community and all
other stakeholders
extend maximum
cooperation.
Exposure visits of CRPs to immersion sites
(Inter state exposure to other areas of Lac
production in India)
To train CRPs in best
practices being
followed in other
states.
CRPs able to
combine best
practices from
different areas and
provide better
training and
handholding support

P a g e | 37
to the producers.
Exposure visit of selected community
members (50 every year) to IINRG field
To help producers
gain first hand
experience of lac
production in field.
Selected producers
gain more than
100% increased
production from
baseline.
Exposure visit of Community to immersion
sites
(7 producers from each block (total 21)will
visit MP to see Lac production by Mr. Moni
Thomas)
To help producers
gain experience in
best practices of lac
production being
followed in other
states.
Producers get better
returns from
investment on their
produce.
Service charge to CRP (Excluding the resource
fee received by them as trainers)
To provide
remuneration to
CRPs
CRPs get
remunerated initially
from the project and
at the end of project
period become
capable enough to
earn commission
from community.
Service charge to para-professionals
(Excluding the resource fee received by them
as trainers)
Community Investment Support
Community Infrastructure
(Store house for 3 institutions on rent)
To store produce at
common place for
the purpose of
running a
cooperative
The producers get
better economies of
scale through
aggregation and sale
from a common
point.
Inputs to the mahila kisan (grant)
Purchase of Sprayer@1 per 5 producer
To facilitate
production process
by provision of
equipments
All Women
producers produce
lac by scientific
means.
Purchase of Secutier @1 per farmer for new
farmers
To facilitate
production process
by provision of
equipments
All Women
producers produce
lac by scientific
means.
Purchase of brood @ 10kg/farmer for new
farmers for 1 cycle as loan by producer group
To facilitate lac
production for
farmers not yet
involved in the
production process
All producers have
enough brood to
sustain their
production process
by the end of the
project period.
Operational Fund of Producer federation
Helmet to each producer
(For drudgery reduction)
To provide women
producers with
safety in the process
of production and
There is no casualty
in case of any
accident related to
lac cultivation.

P a g e | 38
hence reduce their
drudgery in lac
cultivation.
Semia lata plantation in 150 acres To provide women
producers with more
accessible host
plants leading to
their enhanced
involvement in the
production process
Women producers
carry out 100% of
the lac producing
activities without
support from men
and have enhanced
socio-economic
status in their
community.
Knowledge Management
Identification of best practices
(Through cross learning visits)
To help in exchange
of knowledge and
experiences for
better learning
between producers
of different clusters.
Producers gain
better experiences
through sharing and
also become
inspired through
positive
competitiveness.
Documentation of best practices
(Through print and electronic media)
To create
documents for
further research and
enrichment of
training resources
through required
customization.
Producers beyond
the coverage of this
project would
benefit through the
gathered knowledge
in the long run.
Dissemination of best practices
(Through kisan Mela and Award ceremony)
To encourage
positive competition
and share best
practices of
production to
disseminate it
further.
Producers would
enter into a healthy
competition and
hence become
motivated to
practice better.
Yearly workshop at state level with different
stakeholders
To involve
stakeholders at
different levels to
understand the
potentials of the
product.
In the long run
stakeholders would
influence policy level
changes for better
regulated market for
the produce.
Monitoring & Evaluation
Baseline survey
(At the beginning of project period)
To understand the
current situation of
the product viz- a-viz
producers.
After the completion
of the project, a
comparison
between the
baseline and the end
line will reveal the
true potential of the
produce and the
model being
implemented.

P a g e | 39
Endline survey
(At the end of project period)
To understand the
situation of the
product viz- a-viz
producers after the
completion of the
project.
After the completion
of the project, a
comparison
between the
baseline and the end
line will reveal the
true potential of the
produce and the
model being
implemented.
Independent evaluation studies
(Hiring external consultant for mid term and
end term evaluation)
To understand the
progress and
achievement of the
model and
deviations if any
from the planned
course of action
through an
independent
authority.
The results of the
study will yield
directions at the
mid-term level for
further course of
action and the total
positive outcome
from the project at
its end.
Public information disclosure
(display boards)
To maintain
transparency and
provide visibility to
the project.
The community and
various stakeholders
would have a clear
picture of the
processes of the
project and hence
gain faith in it for
better participation.
Social Audit To maintain
transparency and
provide visibility to
the project.
The community and
various stakeholders
would have a clear
picture of the
processes of the
project and hence
gain faith in it for
better participation.

P a g e | 40
Training Heads Sub-activities Purpose/Objective Output/Outcome
Technical protocols 6 day residential
Training to CRP in IINRG
on PSCL every year
To orient CRPs on
PSCL by expert
trainers of IINRG.
CRPs become
trained individuals
for further training
dissemination in the
community.
Training to CRP on
Semia-lata Plantation by
IINRG
To orient CRPs on
semialata plantation
for further
promotion of the
host plant.
Semialata plantation
and cultivation of
lac on it leads to
reduced drudgery of
women producers.
Training on PSCL(4
modules) to 2000 new
producers carried out in
phases
To increase
producer base on
lines with scientific
techniques of lac
cultivation.
Producer base
increased by 2000
new producers
practicing lac
cultivation by
scientific
techniques.
Livelihood Institution
Building
One day training in
three block to the
producers by Block
Cooperative Officer on
importance and
functioning of
Cooperatives
To orient producers
on the benefits of
cooperative
Producers organize
themselves into
cooperatives and
hence get better
returns for their
production.
One day training to
executive
committee(EC) of
cooperative on
cooperative
management
To train the core
management group
on better
management of the
cooperative
The management
group becomes
capable of
managing the
activities of the
cooperative.
Others (Specify) Training to leaders & PRI
on Social Audit
To orient the local
natural leaders,
other stakeholders
and PRI
functionaries to
carry out social
audit of the
programme.
Transparency of the
proramme is
maintained and
hence the
community and all
other stakeholders
extend maximum
cooperation.

P a g e | 41

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13. Human Resource (Give details of staff with relevant experience proposed for deployment towards the proposed project.
Details should also include availability of Community Resource Persons with relevant knowledge deployed under the project.
Answer to this question may be put as Annexure.
Name Gender Position and current
place of work
Educational
qualification
Experience
in Lac
cultivation(
Yes /No)
Experience in
years
In lac
cultivation
Total
Nikhil
Ritesh
Sanga
M Placed at BDS Ranchi
and looking after Bundu
and Khunti
Post Graduate Diploma
in Rural Development
from XISS
Yes 4 years 7
years
Mithilesh
Kumar
Singh
and looking overall Lac
intervention
in Rural Development
from XISS
Yes 5 years 5
years
Chaitanya
Kumar
Ganjhu
M Placed at Khunti Graduate and Lac
entrepreneur
Yes 10 years 10
years
Bharat
Kumar
Rathore
and looking after
Khunti.
Master in social work Yes 1 year 4
year
Sachin
Kumar
Sahi
and looking after
marketing.
in marketing from XISS
Yes 1 year 4
years
Benedict
Naurangi
M Placed at Khunti( Field
assistant)
Graduate Yes 4 years 6
years
Rakesh
Ranjan
M Placed at Bundu ( field
assistant)
Masters in Rural
Development from
IGNOU
Yes 8 years 8
years
Magan Say
Mahto
assistant)
years
Suberdhan
Mahto
assistant)
years
Dev
Narayan
Mahto
assistant)
years
Shankar
Bedia
M Placed at Angara ( field
assistant)
years
Amar
Singh
Munda
M Placed at Angara (field
assistant)
Intermediate Yes 6 years 6
years

P a g e | 43
COMMUNITY RESOURCE PERSON REVENUE MODEL
Service portfolio of CRP's (1:50 producers)
Items
Charges (In Rs.)
Brood Procurement 2/kg
Funki Sale 2/kg
Fungicides
Arrangement
5/cycle/family
Brood Sale/rotation 2/kg
Scrap Sale 2/kg
Estimated income of CRP’s through service ( 1: 50 Producers )
Brood Procurement
Average
Inoculation in Kg/
family
No. of
families
involved
Total
Inoculation
in Kg
Reven
ue / Kg
Total Revenue
( Inoculation
*Revenue / Kg
Kusumi on Kusum 20 20 400 2 800
Kusumi on Ber 15 25 375 2 750
Kusumi on Semialata 7 5 35 2 300
Rangini on Ber 10 15 150 2 300
Rangini on Palas 5 12 60 2 120
Funki Sale ( 25 % of
Inoculation )
Total Inoculation ( In Kg) Estimated Funki
obtained
Revenue Total
Revenue
1020 255 2 510
Fungicides Arrangements
Total No. of Family (
Including repetition)
Revenue / family
In Rs.
Total
Revenue
77 5 385
Brood Sale
Total brood inoculated (
in Kg)
Expected output
in terms of brood
( Average 3 times
of inoculation )
Revenue /
Kg
Total
Revenue
1020 3060 2 6120
Scrap Sale
Expected output in terms
of brood ( In Kg)
Estimated scrap in
Kg (5% of
expected
production of
brood )
Revenue /
Kg in Rs.
Total
Revenue
3060 153 2 6120
Total revenue from all
sources ( Brood
procurement , Funki sale
, Fungicides
arrangements Brood Sale
, Scrap Sale
Rs.
(2040+510+38
5+6120+306)
= Rs. 9361/-
Revenue / Month ( Rs.
9361/12 )
Rs. 780 ( This will increase on yearly basis as the producers gain interest in lac cultivation

P a g e | 44
CALCULATION OF INCEREMENTAL INCOME OF EXISTING PRODUCERS
Income increment of existing 2000 producers
Items
Quantity(in
Kg)
Revenue/kg after
giving Rs. 5 to
cooperative
through initial
value addition
Total
Revenue
earned
Average Scrap in
one year
18 30 540
Average Funki in
one year
27 30 810
TOTAL 45 1350
CALCULATION OF INCEREMENTAL INCOME OF NEW PRODUCERS
Net Profit (Return- Investment)= Rs 29175
Investment
Items
quantity
in kg Price/kg Investment
CROP -
1
Brood 10 400 4000
Thread 10 10 100
Spraying 10 25 250
TOTAL 4350
Items
quantity
in kg Price/kg Investment
CROP -
2
Brood 15 0 0
Thread 15 10 150
Spraying 15 25 375
TOTAL 525
Total investment(crop 1 +2 ) 4875
Returns
CROP-1
Items
Quantity
in Kg. Rate/kg
Total
Sale in
Rs.
Funki (25% of
brood
inouclated)
2.5 450 1125
Brood (Three
times of
inoculation)
30 400 12000
Scrap (5% of
Brood)
1.5 450 675
Total Return 13800
CROP-2
Items
Quantity
in Kg.
Rate/kg
Total
Sale in
Rs.
Funki (25% of
brood
inoculated)
3 450 1350
Brood (Three
times of
inoculation)
45 400 18000
Scrap (5% of
Brood)
2 450 900
Total Return 20250
TOTAL Return (Crop1+2) 34050

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Misereor Sanction Letter for 25 % Contribution

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Misereor Sanction Letter for 25 % Contribution

P a g e | 47
European Commission Contribution

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Intel Contribution

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ICCO Contribution

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ICCO Contribution

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ICCO Contribution

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NABARD Contribution - FTTF

P a g e | 53
Training Schedule of Lac Cultivation – By IINRG

P a g e | 54
Training Curriculum for Food Security and Nutritional Security of Producer
Women.
Duration ( 8 hours )
Sl.
No.
Topics Methodology Duration Expected Outcome
Tea-10mins
1 Registration NA
2
Welcome address,
briefing & Ice-Breaking
(Aao Jaane pehchaane)
Story & Game 20 mins
To formally introduce the
trainers and brief the
programme and methodology
to the group& help trainees to
know each other easily and
enabling them to get open for
the coming sessions.
3
Samasyaon Ki
pehchaan aaur
samadhaan ki auur
Stpry, Exercise
& Discussion
30 Mins
To help participants
understand the difficulties
faced by them and their
families and how are they to a
large extent related to health.
4
Swastha-Kya, Kyu aaur
kaise
Exercise,
Experience
sharing &
Discussion
60 mins
understand the different
elements of health and
differentiate between good and
ill health and what factors
influence them.
5 Hygiene and health
Exercise,
Experience
sharing &
Discussion
30 Mins
TO help participants
understand the importance of
hygiene and its effect on helath
and nutritional status of
individuals.
6 Energizer Game 10 Mins
To recharge the partcipants
and make them feel fresh for
the upcoming sessions.
7 Poshan aaur ku-poshan
Presentation &
Discussion
20 Mins
understand the difference
between nutrition, mal-
nutrition and under-nutrition
and how it affects people.
8
Khadya suraksha aaur
Poshan- zaruri kyu
Story & Game,
Discussion
30 Mins
To help participants realise the
importance of nutrition and
how should their income be
well channelised to ensure food
security and meet nutritional
requirements of their families.
Lunch- one hour
9 Energizer Game 15 Mins
To recharge the partcipants
and make them feel fresh for
the upcoming sessions after
lunch.
10
Vitamin, khanij aaur
urja dene waale khadya
padarth
Game, story,
presenttaion
and discussion
45 Mins
understand the different types
of food essential for the body
and the different roles they
play.

P a g e | 55
11
Purush aur mahila ke
poshan ki kahani
Story,
discussion,
presentation
60 Mins
To help the participants
understand and address the
issues of gender discrimination
at home in terms of nutritional
provision to the children. The
specific needs of adolescents,
girls, children and pregnant
women would be emphasised.
12
Paushtik bhojan
banane ke tareeke
ewam peene ke paani
ka mahatwa
Game &
Presentation
30 Mins
To help the participants
understand the variuos
methods of cooking and
preservinf food to ensure
nutritional requirements of the
family.
Tea- 15 Mins
13
Ghar me Sabji
Utpaadan-paushtik
bhojan
Presnttaion,
exercise and
discussion
30Mins
To help the participant
understand methods to
cultivate important vegetables
in kitchen gardens.
14
Nasha aaur pariwaar ka
swasth-Kaise bache
aaur bachaye
Story and
Discussion
15 Mins
To help the particpants
understand variuos factors
influencing individual's health
such as drugs/alcohol and why
they are harmful.
15
Summarization &
Feedback Session
Presentation &
Discussion
15 Mins
To help the particpant collate
the learning of the entire
programme.

P a g e | 56
Audit Report – F.Y. 2011 - 12

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