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Slide 1: 

Presented By – Ashutosh Nanda KSRM,KIIT University Community Based Micro Enterprise Development through Mahua Flower Business Host Organization: Seva Mandir, Udaipur, Rajasthan

Road Map: : 

Road Map: Back ground Objective Methodology Value Chain of Mahua Flower Problem in NTFP Business and Probable Solution Past Experience in Mahua business Institutional Model for NTFP Business Planning For NTFP Cluster Work Break Down Structure Activity Schedule of NTFP Institute Financial Analysis of business

Back Ground : 

Back Ground NTFP(MFP): Non Timber Forest Produce Plant Parts Used: Flowers & seeds

Objective : 

Objective To help the members of the FPCs to get proper prices of the collected NTFPs (Mahua with major Focus) and Capacity Building for Self Sustainable Institute. To introduce economies of scale through pooling of the produce(Collective Action). To enable Value addition of the pooled produce in such a way so as to fetch the best possible price for the NTFP.

Methodology : 

Methodology Action Research Informal Discussions Semi-structured Interviews Secondary Data Forest Department Rajash Sangh Lamp

Study Area Details : 

Study Area Details

The Problem: : 

The Problem: Low payment to tribal and Exploitation by Middle Man Irregular market forces & Seasonality Variation in Production Loss of quantity and quality over a period of time Difficulties or less scope in value addition Less Bargaining Power Lack of proper marketing Channel

Present Marketing Channel : 

Present Marketing Channel LAMP Agent Traders (20%) Rajash Sangh Middle Man Auction Nearest Market (Small Trader) Big Players in Udaipur, Ahmadabad Processing Unit Primary Collectors

Marketing Channel of Mahua Flower : 

Marketing Channel of Mahua Flower

Possible Solution : 

Possible Solution Getting the benefit of economies of scale due to increased volume of goods/ produces being pooled as a part of collective business. Enhancement of bargaining power and develops understanding of the market and the surrounding. Preparing a Business Model with Proper Market Channel. Facilitating Forward and Back ward Linkage Value Addition in the Product for Better Price Discovery

Proposed Marketing Channel : 

Proposed Marketing Channel Nearest Market Trader(Big Trader) Option 3 LAMP Agent Traders (20%) Rajash Sangh Option-1 Big Players in Udaipur, Ahmadabad: Option-2 Open Market Open Market Udaipur District Consumers Auction FPC /Cooperative (Value Addition) Direct selling Primary Collectors Consumers

Past Experience of Mahua Business in Village Som : 

Past Experience of Mahua Business in Village Som Problem in Fixing the Price: Problem in Storage and weight Loss: Problem in Accounting & Record keeping: Problem in Profit distribution: Responsibility allocation and Better Management Strategy: Collective Action and Product Differentiation through Value Addition

Slide 13: 

Strengthening Existing Institution Samuha(GVK) FPC Forming New Institution Cooperatives FPC SHGs CIG JLG Various Stake Holders Interest Possible Institutional Model for NTFP Business in the Community

Planning for NTFP Business in the Cluster : 

Planning for NTFP Business in the Cluster The main objective of the NTFP based Cooperative/ FPC is:- Facilitating the process of cooperative formation, management and business Exploring new territory and strengthening broad territories Capacity Building Market Facilitation Arranging working capital from revolving fund established at its level at very low interest rates.

Key Characteristics of of FPC or Cooperative : 

Key Characteristics of of FPC or Cooperative Core service: NTFP Business Support Service   Literacy Thrift & Credit Forest protection & management Annual health camp for curative services Information dissemination

Process Flow: : 

Process Flow: Primary Collectors FPC(Value Add) Seva Mandir FPC Retailer/ Retailing Rajas Sangh Tribal’s Women Child Individual family Membership Profit Sharing Fund Availability Procurement Storage Value Addition Technical Support Forward and Backward Linkage Human resource Whole Seller

Procurement Policy: : 

Procurement Policy: Quality standards, verification methods, storage methods/ place, procurement time, sustainable harvesting principles, roles & responsibilities, advance rate fixation procedure, payment system and record maintenance.

Slide 18: 

Governing and Operating Structure

Governing Structure : 

Governing Structure The governance structure will consist of the people who will have the decision making authority. Responsibility and Duty Be updated about the latest market prices of Mahua and inform the FPC about the same from time to time Determine the procurement price for each day based on market information Monitor for proper functioning of centres Ensure that correct entries are being made at every centre Ensure that the norms regarding loan and interest repayment to GVK are met for every centre

Operational body : 

Operational body It will consist of the entire elected member who will run the centers and the Procurement manager Responsibility: Carry out the collection with Manager after confirmation of price by the FPC Maintain adequate stock of stationary, packing bags and essential items like weights for measurement Distribute the profit among the villagers in proportion to their patronage Keeping daily record of quantity collected and number of people who sold the flower or seeds Act as link between the governing body and the beneficiaries

Managers Requirement : 

Managers Requirement He/she should be at least 10th pass Preferably he/she should be the one who is unemployed and not working anywhere else He/she should have attended one day training module at the zone office Training Module The training module for these centres Procurement Manager would be as follows: The training would be of half day, where the candidates will be paid the fare for their journey only. Training would be provided for basic accounting which will include things such as: Balance Sheets Maintaining individual accounts Filling up the proformas Basic calculation of profit/kg

Slide 22: 

Work Break Down Structure

Cluster Development: : 

Cluster Development:

Identification of Cluster : 

Identification of Cluster Availability of raw material availability of tree species (especially the Mahua trees) nearest market. various existing institution working initial market research the value chain of the Product

Production Estimation : 

Production Estimation

Discussion with FPC & GVK : 

Discussion with FPC & GVK Linkage with Rajas Sangh Membership Application Permission for Trading Transit Pass from the Forest Department Fund Availability Interest Rate Time Line

By Laws Formation : : 

By Laws Formation : Membership Terms Procurement Rules Payment Mode Storage Mechanism Price / Profit Redistribution Rules

Procurement Rules: : 

Procurement Rules: The Pooling Quantity to Collection Center must be more than 5kg in Quantity in every time The Quality of Mahua should be Grade-A(1) and Good Color in nature The CC will not receive Black Colored Mahua from Members The CC will not receive wet Mahua from the Members If wet Mahua with Good quality procured then the price will be lesser for the commodity No Pest attacked or fungus attacked material will be acceptable If any (Child Labor)

Payment Mode: : 

Payment Mode: The payment will be given in every seven days/every day/ Card system The payment will be paid to Individual family wise( not individual wise) The payment will be given according the Grade of the material ( Grade given by the Manager/President of Collection Center is final decision)

Profit Distribution Rules: : 

Profit Distribution Rules: The profit realized (if any) will be distributed by equitable manner The Profit will be shared at the end of the business cycle The profit will be calculated after paying the interest rate or any other unpaid expenses Profit will be distributed to only the enrolled members Non members do not have any claim over the Profit of the business Only in case of Rajash Sangh trading it may be happen that they will get the MSP The FPC will decided the amount to be kept in GVK from the Profit will be final

Administrative Body Formation : 

Administrative Body Formation Members of FPC with President Election among the FPC members Experience in the Particular Sector Participatory Approach Various Norm and Rule Monitoring Operational Body and Responsibility Allocation

Slide 32: 

Current Market Price in the Nearest Market Current Market Price in Himmatnagar and Udaipur Mandi MSP Fixed by Rajas Sangh Price speculation by Experts or Professional Price Fixation Mechanism Factors to be Considered before Fixing the Price

2.Establishment Activities : 

2.Establishment Activities

Format of Cards Of Members/ Receipt System/ Format : 

Format of Cards Of Members/ Receipt System/ Format



Possibility of Value Addition : 

Possibility of Value Addition March- May Flower Price- Rs 6 to 7 June- July Flower Price Rs 8-10 Aug- September Flower Price Rs 10- 12 Sept- January Price-Rs 14-18 Flowers Drying Grading Storage Application of Preservatives Liquor Edible Purpose Village level Nearest Market Block HQ Nearest City Outer market

Slide 39: 

Price and Weight Variation in a Business Cycle

Possible Value Addition in Form Utility: : 

Possible Value Addition in Form Utility: Oil Extraction in Local Level Linkage with Soap Making Industries Using Mahua Seed Cake as fertilizer

What we can do minimally??? : 

What we can do minimally??? Spreading polythene Cover: Collection of Neem Leaf and Addition of Neem Leafs Purchasing of preservative & Application of preservative Watch and guard of Storage:

Trading or Marketing : 

Trading or Marketing Option 1: Rajas Sangh Option 2: Traders other than Rajas Sangh Option 3: Trader + Rajas Sang Option4: Village Consumption

Slide 43: 

Packaging Stacking Labor for Loading to Trucks Weighing the truck load Transportation Supportive Activities for Trading

Profit Sharing : 

Profit Sharing

Financial feasibility : 

Financial feasibility

Fixed Cost: For 50 Quintal NTFP Business : 

Fixed Cost: For 50 Quintal NTFP Business

Slide 47: 

Variable Cost for 50 Quintal Business

Slide 49: 

Sensitivity Analysis:

Slide 50: 

Sensitivity Analysis:

Conclusion : 

Conclusion The Collective Action is a Feasible Activity We need to

Slide 52: 

Thank You

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