The document provides details of a case study conducted on the value chain analysis of six medicinal plant products promoted under community-based microenterprises through the Dabur-Baitarani Initiative. It examines the existing value chain model and finds inefficiencies in areas like lack of physical infrastructure, delays in product mobility, and suboptimal prices. Key recommendations include providing processing tools, infrastructure, appropriate minimum support prices, transparency in pricing, skills training, and ensuring smooth product flow to enhance the value chain efficiency.

1. CASE STUDY RESEARCH SEGMENT
Host Organization : BAITARANI INITIATIVE
Presented by : Rajesh Sinha
Susruta Dash
Faculty Guide: Prof. Ajith P
1

2. Project Title
VALUE CHAIN ANALYSIS OF SIX MEDICINAL PLANT
PRODUCTS PROMOTED UNDER THE COMMUNITY-
BASED MICROENTERPRISES THROUGH DABUR-
BAITARANI INITIATIVE
Study I: Dhatki, Bidari Kand, Satavari & Talmuli.
Study II: Myrobalans (Harida, Bahada and Amla)
“A collaborative project with Dabur India Ltd.”2

3. Contents
 Introduction to Host Organization
 Objective
 Methodology
 Existing Value chain model
 Findings
 Observations
 Discussion and Recommendations
 Case Study
 Conclusion
3

4. Introduction to Host Org.
 About BI : It is an engagement of Development professionals
with various dev. Stakeholders across discipline of
environment & dev. towards appropriate management of
natural resources especially that of Water, Forest, Land &
farming systems and promoting Tribal Livelihood through
IGAs
 Medicinal NTFP project with Dabur India is one of the ongoing IGA
project in which the main objective is to protect forest and in the same time
providing livelihood opportunity through NTFP activity.
4

5. NTFP Value chain?
 Non-timber forest products (NTFPs) are any product
or service other than timber that is produced in
forests.
 Medicinal NTFP is one of them.
 economic based definition of value chains involves
the series of value-generating activities performed by
an organization referred to as the value chain.
 A broader, systems approach looks the complex range
of activities implement by various actors, from
primary collectors, SHG , Aggregation point, finally to
Dabur also known as a value system.
5

6. Objective
 Analysis of cost at different stages under the existing value
chain.
 Comparative Analysis of competing Income & other Local
opportunity cost.
 Analysis of Institutional arrangement & stakeholder analysis.
 Recommendation for enhancing efficiency of value chain by
optimizing cost & Institutional arrangement.
6
6

7. AREA UNDER STUDY
State ODISHA
No. of forest
divisions
6 – Koraput,
Deogarh , Bonai ,
Baliguda, Rayagada
, Parelakhemundi
No. of Aggregating
points
12
No. of SHGs 24
No. of PCs 120
No. of villages 20

8. Data & Methodology
 Primary source of data collection:
 Aggregation point
 Village SHG
 Primary collector
 Local traders & other institutions
 Secondary source of data collection :
 Journals on NTFPs
 literature review
 Tools for data collection:
 Questionnaire survey- Questionnaire which contains open ended
questions, dichotomous questions.
And Likert scale for Primary Collectors, SHGs, Aggregating SHGs &
Local Traders.
 Focus group discussion 8

9. Data & Methodology
 Sampling frame : records available with CRP , DRP and
SHGs.
 Sampling technique :
 Purposive and snow ball Sampling : from six divisions
out of 12 Aggregation points we have taken 2 from each
division. And for primary collectors we have gone with
snow ball sampling.
 Sample Size : Total 120 samples has been taken from six
catchment areas.
9

10. Product Pooling Process- Existing model
10
Aggregation
point
Primary
Collector
Local Wholesaler and individuals
& village traders advanced by
Wholesaler
Other SHGs
Own
Collection
Village SHG From
Weekly
Market
FD-Giving
Clearance
GP-Giving
License
PrimaryCollector
Aranyak
Transport
Agency
CRP-
monitoring
10 vill.
DRP-
monitoring
at division
level
cluster
point
Agg. point
SHG
primary
collector
Primary stakeholders

11. Input cost at different level in existing
value chain for Dhatki flower
Primary
collector
• Raw
Collection &
transportation
For
1kg
Raw-
Rs.16
• Processed
Collection
Drying &
transportation
Input
cost –
Rs.
15.50
Rs. 20
SHG
Agg.
point
Drying &
rough
packing
Input
cost –
Rs. 1
Rs.
0.50p
Bag-Rs.1
Stitching- 0.24
Man days- 3.33
Input cost revenue MSP
PC 15.50 20 16 22
SHG 17.50 22.50 20 23
Agg. SHG 24.57 27.57 25.86 25.86
Price
at
SHG-
Rs.20

12. 12
DIFF.
STAGES
INPUT COST
REVENUE
NET. PROFIT
RAW PROCES
SED
RAW PROC
ESSED
RAW PROC
ESSED
PC 15.50 20 16 22 1.50 2
SHG 17.50 22.50 20 23 5 3
AGG.
POINT
24.57 27.57 25.86 25.86 1.29 1.71
19%
64%
17%
PROFIT SHARING
PC
SHG
AGG.POINT
In RAW method max.
profit is shared by SHG .

13. Input cost at different level in existing
value chain for Harida :
Primary
collector
• Raw
Collection &
transportation
For
1kg
Raw-
Rs.12
• Processed
Collection,
deseeding
Drying &
transportation
Input
cost –
Rs.
9.20
Rs.
14.20
SHG
Agg.
point
Drying &
rough
packing
Input
cost –
Rs.
12.40
Rs. 1
Bag-Rs.1
Stitching- 0.24
Man days- 2
Input cost revenue MSP
PC 9.20 14.20 12 16
SHG 24.40 17 26 20.50
Agg. SHG 29.26 23.74 27.50 27.50
Price
at
SHG-
Rs. 26

14. 14
DIFF.
STAGES
INPUT COST
REVENUE
NET. PROFIT
RAW PROCES
SED
RAW PROC
ESSED
RAW PROC
ESSED
PC 9.20 14.20 12 16 2.8 1.80
SHG 24.40 17 26 20.50 1.60 3.5
AGG.
POINT
29.26 23.74 27.50 27.50 1.76 3.76
20%
39%
41%
PROFIT SHARING
pc
SHG
AGG. POINT
8%
8%
2%
82%
Different input cost for
Harida
TRANSPORTATION
GUNNY BAG
STITCHING
MANDAYS
• In processed method max. profit goes to
Agg.point.

15. Other opportunity cost
15
medicinal
NTFPs
competing
income
Overlapping
period –
October to
April
NREGS
Agriculture
Non-Agri.
Labour,
Other NTFPs

16. ACTIVITY PREFERENCE
16
 During the overlapping period i.e.
Oct.- April more than 50% people
prefer to work as Non-Agri. Labour
and NREGS.
 Only 8% people prefer to do the
NTFP activity due to –
 less income from NTFP in compare
to MREGS & Labour &Geographical
barrier.
50%
17%
8%
25%
ACTIVITY PREFERENCE
NREGS
ARGICULTURE
OTHER NTFP
NON-AGRI LABOUR

17. Contribution of medicinal NTFP to
total Income of PC
 HHs average income of primary collector is Rs.3683 in the overlapping season out of
which 41% of total income is contributed by MGNREGS and 18% of total income is
from medicinal NTFPs
 From total NTFPs income medicinal NTFPs contribute 48%
 Medicinal NTFPs is a vital source of income in agricultural lean period
17
41%
9%19%
18%
13%
Income distribution
NREGS
Agriculture
NTFPs
medicinal NTFPs
Non-Agri. Labour
48%52%
other NTFPs vs Medicinal
NTFPs
medicinal NTFPs
other NTFPs

18. SUGGESTED MSP FOR MFP
 For Dhatki: Raw
8hr : 10kg * Rs.16 = Rs.160
 NREGS : 8hr * Rs. 21.86= Rs.175
 For processed Dhatki :
7kg * Rs. 22 = Rs.154
 To meet the minimum wage with NREGS
there should be increase of Rs.1.50 for
Raw and for processed increase of Rs. 3
18
160
175
price
New MSP for RAW – Rs.17.05
New MSP for processed – Rs.25

19. Continue…
 For Harida: Raw
8hr : 13kg * 12 = Rs.156
 NREGS : 8hr * 21.86= Rs.175
 For processed Harida :
7.8kg * 16 = Rs.124
 To meet the minimum wage with
NREGS there should be increase of
Rs. 1.46and for processed increase of
Rs. 6.53
 New MSP for RAW – Rs.13.46
 New MSP for processed – Rs.22.53
19
124
175
price

20. Demographic details of samples:
 A total number of 120 samples were taken from six divisions of areas under study. It includes
84 female’s collectors i.e.70% and 36 male collectors i.e. 30%.
 25% lies in between 51-60 . And 12 members i.e. 14% lies
between 41-50 and only 8% i.e. 7 members are involved as
collectors.
 So it is found that females
above 60 years of age are involved more.
 Female dominating activity
20
8%
14%
25%
53%
30-40
41-50
51-60
61-above
30%
70%
Gender ratio
male
female
GENDER ODISHA INDIA
MALE 41% 55%
FEMALE 59% 45%

21. Target villages
21
67%
33%
product procurement-
target village
product collected
product not collected
0
200
400
600
800
1000
1200
1400
target village other village
product damage
 out of 120 target villages product pooling was
done from 80 villages.
 pooling was not possible from rest of villages
due to-
 Fluctuation in fruiting due to climate change.
 Other competing incomes like NREGS , other
NTFPs, Non-Agri labor.
 Lack of equal participation of SHG members.
 Lack of Transfer of skill.
 when the procurement is from other than
target villages there is a loss in product
damage due to –
 Immature harvesting.
 Wrong way of processing – lack of skill &
training.
 Fungal attack.
 Lack of proper storage house.

22. sources of product procurement
 There is an increase by 8 ton product collection from PC as compare to
last year.
 As compare to last year the collection
from local haat has increased by 6 ton
due to product display in local haat.
 Product contribution from SHG: fig.2
 73% prefer contributing product as
Individual whereas only 27% prefer to
contribute as a member of SHG due to-
 Lack of equal participation by
SHG members
 Lack of equal profit sharing
22
27 24 7 10 2 10
35
27
8 6 8 6
0
10
20
30
40
VOLUMEINTON
SOURCE OF POOLING
YEAR WISE PRODUCT
POOLINGIN MT.
2014-15 2015-16
73%
27%
product contribution
Giving as Individual As SHG member

23. Product Knowledge
23
67%
33%
PROCESSING SKILLS
YES NO
37%
63%
PROPER
HARVESTING
KNOWLEDGE
PRE-MATURE PROPER HARVESTING
PRODUCT APPROPRIA
TE
HARVESTIN
G PERIOD
APPROPRIA
TE DRYING
PERIOD
DHATKI JAN-FEB 2 DAYS
HARIDA NOV-JAN 4 DAYS
AMLA DEC-FEB 7 DAYS
(steam
boiling)
SATAVARI OCT-NOV 2 DAYS
Instant
peeling
Immature harvesting & wrong processing
results in fungal attack and damage which
decreases the quality.
CASE- Wrong processing of Satavari

24. Physical Infrastructure
24
Total SHG Weighing
machine
Drying
yard
storage
24 20 12 8
Total
Agg.point
Weighing
machine
Drying
yard
storage
12 10 8 9
At SHG
At Agg.pt

25. Product mobility
 To maintain quality & medicinal property throughout the vc , product
should reach at Agg. Point from PC within 10 days.
 And from Aggregation point to Dabur within
30 days.
 In some places in the VC there is lack of
in time mobility resulting in product damage,
Weight loss & quality.
e.g. - CASE- Harida there is
Wt. loss of extra 150gms due
to delay processing
(delay by 20days)
25
PRIMARY
COLLECTOR
•When giving
RAW
SHG
•Lack of
participation at
SHG
• lack of fund
•Non availability
of labour
•delay In
dispatch
Aggregation
point
•Non
availability
of labour
•Delay in
dispatch
Product
blockage

26. Observations
 Innovative local processing techniques for efficient & easy
processing of product in absence of processing tools.
 Even though people are engaged in NREGS still some people are
doing the NTFP activity . Resulting in additional income
 product quality & seasonality vary from place to place which is
affecting the value chain.
 Increase in efficiency of processing time for those who are
habituated.
 product display in local haat – resulting in increase in product
procurement. A effective & cheap marketing strategy.
26

27. Key Recommendations
 To Increase the efficiency of the existing value chain :
 Providing processing tools which reduce the processing time resulting
in reducing the input cost.
 Providing physical infrastructure like- drying yard & storage at
Aggregation point to avoid unnecessary loss from fungal attack &
moisture.
 Providing appropriate MSP .
 The price should be decided on the basis of fruiting & quality .
 Ensuring transparency through out the value chain by providing
constant price to primary collectors.
 Local method of processing should be promoted .
 Conducting workshops & training programs on skill building including
product knowledge .

28. Continue…
 Ensuring adequate fund at SHG & Agg. Point before harvesting period.
 Ensuring smooth product mobility throughout the value chain by
avoiding communication gap in between the stakeholders.
 Appointing village level leading collector where there is a lack of
equal participation in SHG .
 Engaging PC more than six months by providing market linkages for
other medicinal NTFPs.
PC VLLC SHG
Agg.
point

29. Innovative marketing
strategy
 Product display at local haat
 Incentive to collectors
 Identity Card to primary collectors
 Product promotion van

30. Ideal Stakeholders ?
30

31. Resource mapping model
31
Identifying
potential village
Identifying
potential SHG/
Primary collector
/community
potential resource
areas /mapping
PRA tools
Having less
opportunity option
SHG- equal
participation of
members
Particular community
One-one with
villages-
accessible trees
V
L
C
C
C
R
P
D
R
P
Facilitators

32. Suggested model for village selection
32
• proper identification and
selection of potential villages
are very critical aspect. It
directly creates impact on the
quantity and collection of
products. If the selection is not
done properly it will affect the
volume. The village should be
near to the forest and should
have adequate product
potential.
 The village should have proper
transportation & road linkage.
 The village should have pro-
active SHG and or individual
primary collectors. Availability
of fund with the SHG during
NTFP season.

33. Published Books
 Two books
Published in odiya
Language on stock &
product knowledge
33

34. Case -2 : Leadership : CRP
 Name – Vishnu Majhi
 Age - 27
 Designation – CRP of Siva Agg. point
 Village- Siva , Div.- Baliguda
 Highest contribution among all CRP
 How he achieved the target ?
 Continuous monitoring ,guidance
& motivation to SHG through out the season from harvesting
to processing. Resulting in less loss during processing & more processed product.
 Motivated & guided SHGs
34

35. Conclusion
 NTFP is definitely not a replacement for Primary source of Income but it
provides an addition Income support for tribal community during lean
seasons.
 Empowering women & promoting young Entrepreneur through providing
Income Generation Opportunity.
 This activity will able to meet the growing demand for herbal
medicines.
 Last but not the least through this initiative the organization is fulfilling
its goal i.e. balance between Ecology & Economy.
35

36. Thank you note..
Last but not the least , we are thankful to KSRM &
Baitarani Initiative for giving us an opportunity to learn
& work. And our special thanks to all the field staffs for
their constant support throughout our field visit....
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