VALUE ADDITION AND INSTITUTIONAL
CHANGE FOR VALUE CHAIN
L.K.Tewari, IFS
Additional Project Director
Introduction
• OFSDP started with financial assistance
from JICA in 2006-07.
• Project initially scheduled for 07 years,
i.e. up to 2012-13, was subsequently
extended up to 2014-15.
• Initial estimated Project cost of Rs.660
Cr., of OFSDP was revised to Rs.802.30
Cr. in 2011-12.
Selection Criteria
 Extent of Forest Degradation
 Poverty -> 67% ( actual 74% BPL)
 ST & Sc (> 22%) ( actual 56.8% & 12.9%)
PROJECT OBJECTIVES
Restoration of Degraded Forests
and
Improvement of Income Level of Villagers
by
Promoting sustainable forest management with
larger goals of improving environment &
alleviating poverty
P
H
Y
S
I
C
A
L
P
R
O
G
R
E
S
S
Component
VSS/EDC coverage
Project Targets
Project
Achievements
2,275
2426
196,650 ha
2,10,405 ha
138,000 ha
1,55,045 ha
b) Block Plantation (JFM)
39,650 ha
40,943 ha
c) Artificial Regeneration (Teak)
19,000 ha
14,417 ha
2,810 ha
2,920 ha
a) Mangrove
2,160 ha
2,769 ha
b) Casuarina
650 ha
151 ha
1. Restoration of Degraded Forests
a) ANR (JFM)
2. Coastal Plantation
Components under Saving Plant (Implemented during Project Extension Phase)
a) Farm Forestry
-
9,497 ha
b) NTFP under planting in ANR areas
-
22,177 ha
a) Ecotourism Destination Development
5 Sites
7 Sites
b) Establishment of Community Reserves/
Heritage Sites
5 Sites
2 Sites and 137 Sacred
Groves
a) Entry Point Activities
2,275
2,426
b) Income Generating Activities (SHGs)
4,850
7358
3. Biodiversity Management
4. Community/Tribal Development
MAJOR INCOME GENERATING COMMODITIES
PROMOTED BY THE PROJECT
 Agriculture Based Commodities
o
o
o
Tamarind (Tamarindus indica)
Turmeric (Curcuma longa)
Maize (Zea mays), Ginger(Zingiber officinale),
Onion (Allinus cepa) and other seasonal
vegetables
 Leaf Product Based Commodities
o
o
o
Sal leaf (Shorea robusta)
Siali (Bauhinia vahili)
Broom/Hillbroom (Genista spp.)
MAJOR INCOME GENERATING COMMODITIES
PROMOTED BY THE PROJECT

Non-timber Forest Products
o Myrobelons
 Aonla (Emblica officinalis)
 Harida (Terminalia chebula)
 Baheda (Terminalia bellirica)
o Satabari (Asparagus racemosus)
o Mohua (Madhuca longifolia)

Other Products
o
o
o
o
Handicrafts and Teracotta articles
Agarbattis
Bamboo crafts
Honey
VALUE ADDITION TO IMPORTANT PRODUCTS
A - Agricultural Products
Product
Tamarind
Level of value
Processing activities
addition
SHG/Cluster
Drying , de-seeding & packaging
Turmeric
SHG/Cluster
Maize
SHG level
Ginger
SHG level
Drying, polishing, powdering &
packaging
Thrashing, drying, polishing &
packaging
Cleaning & packaging
Onion
SHG level
Cleaning, storage & packaging
Other
seasonal
vegetables
SHG level
Cleaning, storage & packaging
VALUE ADDITION TO IMPORTANT PRODUCTS
B – Leaf based Products
Product
Sal leaf
Siali leaf
Level of
Processing activities
value
addition
SHG/
Pressing of leaves in machines, fine
Cluster
stitching for making of plates & cups of
varied sizes & packaging
SHG/
Cluster
Hillbroom SHG/
Cluster
Pressing of leaves in machines, fine
stitching for making of plates of varied sizes
Drying, grading, binding using rope &
plastic pipes & packaging
VALUE ADDITION TO IMPORTANT PRODUCTS
C – Non-timber Forest Products
Product
Level of
value
addition
Processing activities
Myrobelons
(Aonla, Harida,
Baheda)
SHG
Drying, storage, grading & packaging
Satabari
SHG
Drying, storage, grading & packaging
Mohua
SHG
Drying, storage & Packaging
VALUE ADDITION TO IMPORTANT PRODUCTS
D – Other Products
Product
Handicraft &
Teracotta
articles
Level of
value
addition
SHG/Cluster
Processing activities
Collect of raw material &
preparation of articles
Agarbati
SHG/Cluster
Stick making, rolling & applying
of perfume
Bamboo crafts
SHG
Honey
SHG
Preparation of consumable
articles
Collection through apiculture and
from forest, processing
Value addition process and
development of value chain for
important commodities
MAIZE
Poultry Farm Owner
Cattle Feed Processor
Godrej Agrovet LTD
(Suguna Foods LTD)
(OMFED)
and Processor
Rs. 1520/Kg
Traders, Commission Agents, State Agency and Corporates
Rs. 1113/Kg
Regional Trader & Commission Agents / State Agency
Rs.
10.5011/Kg
Village level Local Traders, Town level Agents and Govt.
Marketing Agency (TDCC)
Rs. 9.5010.50/Kg
Farmers in cluster
Production,
harvest, drying,
packaging and
sale
HILL BROOM
Regional Hubs
Rs.40-50/piece
of prepared mop
(Traders and Commission Agents)
Bhubaneswar, Cuttack, Nagpur,
Visakhapatnam, Jagadalpur, Raipur,
Hyderabad
Rs.35-45/piece
of prepared mop
Town Level Traders/ Processors
Rs.33-37/piece
of prepared mop
Local Traders in Village
Rs. 25-30/Kg raw
broom material
Production Cluster
Value chain process
Procurement of
finished product,
Storage and selling
Procurement of
finished product,
Storage/transportation
and selling
Procurement, Storage,
grading, binding and
selling
Collection and drying
TAMARIND
Value chain processes
Rs. 30 to 35/kg
deseeded
Rs.45- 48/kg cake
Rs.72-80/kg pulp
National Market
Rs. 28 to 32/ kg
deseeded with fibre
Rs.12-18/kg raw
Regional Hubs (Traders and
Commission Agents)
in
Andhra Pradesh &
Chhattisgarh
Procurement, Cold
storage, sale and
transportation
Village/Town level Trader
Procurement of
de-shelled pulp,
de-seeding, Storage,
packaging and sale
Rs. 15-18/kg
de-seeded
Rs.12-15/kg raw
Rs.8-10/kg raw
Production Cluster
Procurement , Cold
storage, conversion to
various products and
Trading
Leasing of plant,
collection of pods, drying,
de-shelling and sale
*Rs. 400-500 for leasing of one plant, with production capacity of 2 qtl raw Tamarind
SIALI LEAF
Value chain processes
Rs.65-80/bundle
with 100 Pcs of
plate
Rs.60-75/bundle
with 100 Pcs of
plate
Rs.8-10/Kg leaf
Rs.55-65/bundle
with 100 Pcs of
plate
Rs.7-8/Kg leaf
Rs.50-60/bundle
with 100 Pcs of
plate
State/ National Trader
(Berhampur, Hyderabad,
Bangalore)
Region Level Processor
Town Level Trader
Production Cluster
Sourcing,
storing,
transportation
and selling
Sourcing inputs,
unit preparation,
pressing, cleaning,
setting packing,
storing,
transportation
No value
addition
Collection,
carrying, drying,
pining/ packing/
plate stitching
and selling
Segregation
Weighing
Wire rolling & Binding
Pipe covering
Cutting
Final Product
Engagement of Specialised Agencies for IGAs
DMUs
Balligud & Phulbani
Agencies
Consortium of Access Development Services
(ADS) & Entrepreneurship Development
Institute of India (EDII) Previously by MART
Jeypore, Koraput,
Consortium of Access Livelihood Consulting
Keonjhar, Bhadrak (WL) & India (ALCI) & SPARDA Previously by APITCO,
Balasore (WL)
BISWA & MART
Parlakhemundi &
Rayagada
Indian Grameen Services ( Basix Group)
Previously by MART
Bonai & Rourkela
NABARD Consultancy Services (NABCONS)
Previously by MART
Angul, Deogarh &
Satkosia (WL)
Previously by BISWA
Currently being managed through IGA
coordinators, directly engaged by the project
Role played by IGA Support Agencies
• Organisation of SHGs
• Identification of appropriate Resource Persons
and their engagement for imparting training and
demonstration
• Organising exposure visit for SHG members to
successful enterprises and good practices
• Facilitating SHGs in development of Business
plans, loan linkages and implementation of IGAs
• Handholding support to SHGs for value addition
during processing, packaging etc.
• Setting forward and Backward market linkages
Promotion of “ASAL’’ logo by OFSDP
for sale of SHG cluster products
THANKS