Tribal Communities Gain New Income Opportunities Through Forest-Based Economy

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For a large number of India’s 104 million (10.4 crore) Scheduled Tribe members, Minor Forest Produce (MFP) accounts for 20% to 40% of their annual income. Tribal communities have long been compelled to sell their produce to middlemen at low prices. To address this challenge, the government is implementing the Pradhan Mantri Janjatiya Vikas Mission (PMJVM). Under this mission, efforts are being made to organize tribal communities through Van Dhan Vikas Kendras (VDVKs), transforming them from mere collectors of raw produce into entrepreneurs who create value-added products. So far, 4,172 Van Dhan Vikas Kendras have been sanctioned, engaging 1.248 million (12.48 lakh) tribal members.

Minor Forest Produce: A Key Pillar of Livelihood

Minor Forest Produce—such as honey, tendu leaves, mahua flowers, tamarind, lac, bamboo, and wild herbs—forms a crucial basis of livelihood for millions of forest-dwelling tribal families. Sales of these products contribute 20% to 40% of the annual income for many families. However, despite the existence of direct trade mechanisms, tribal collectors often receive only a fraction of the product’s true market value. Due to the role of middlemen, they are forced to sell their produce at low prices.

PMJVM is Transforming the Old System

Launched in 2021-22, the Pradhan Mantri Janjatiya Vikas Mission provides a structured system for the value addition of Minor Forest Produce. Under this initiative, tribal communities receive training in new technologies, improved processing methods, and business practices. The scheme aims to boost the reach and sales of their products by connecting communities to national and digital markets. Additionally, the government procures Minor Forest Produce at a stipulated Minimum Support Price (MSP). Purchase and Sale Rights Granted by the Forest Rights Act

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006—also known as the Forest Rights Act—recognizes the rights of forest-dwelling communities regarding Minor Forest Produce (MFP). This includes various non-timber forest products such as bamboo, cane, tasar, cocoons, honey, wax, lac, tendu or kendu leaves, medicinal plants, herbs, roots, and tubers within the scope of Minor Forest Produce.

MSP for 87 Minor Forest Produce Items

The government has notified Minimum Support Prices (MSP) for 87 Minor Forest Produce items under the PMJVM scheme. The Forest Rights Act grants forest-dwelling communities the right to procure and sell non-timber minor forest produce. Additionally, ownership rights over minor forest produce have been conferred upon tribal Gram Panchayats under the Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996.

Pivotal Role of TRIFED

The Tribal Cooperative Marketing Development Federation of India (TRIFED) has been entrusted with the responsibility of marketing and developing tribal products. It procures non-timber forest produce at fixed prices and conducts the procurement process through a network of state-level implementing agencies, tribal development cooperative societies, and forest development corporations. Since 2013-14, state governments have procured 2,67,954 metric tonnes of minor forest produce worth ₹693.98 crore under this scheme.

Tribals Connecting with Van Dhan Vikas Kendras

Under the PMJVM, tribal gatherers are organized into Self-Help Groups (SHGs). A cluster of 15 SHGs, comprising approximately 300 tribal members, is linked to a Van Dhan Vikas Kendra (VDVK). It is mandatory for at least 60% of the members in each VDVK to belong to Scheduled Tribe communities.

Van Dhan Yojana: The Foundation of PMJVM

Launched on April 14, 2018, the Van Dhan Yojana forms a part of the PMJVM. This lays the foundation for the VDVK model and accelerates its implementation among tribal communities. Its primary objective is to organize Minor Forest Produce (MFP) gatherers and provide them with opportunities for processing and value addition at the community level.

Skills, Technology, and Financial Support

Through VDVKs, the government trains MFP gatherers in various skills, including scientific methods of produce collection. Infrastructure is provided to Self-Help Groups (SHGs) at beneficiaries’ homes or in government/Gram Panchayat buildings. Equipment for cutting, sorting, decorticating, drying, and packaging is supplied based on the local Minor Forest Produce available. Approximately 30 members receive training in sustainable harvesting and value addition, along with raw materials and trainee kits. Working capital facilities are made available through linkages with financial institutions, banks, and the National Scheduled Tribes Finance and Development Corporation (NSTFDC). Assistance for rented storage and transportation is also provided as needed.

Market Linkage: From Local Haats to E-commerce

Van Dhan Vikas Kendras are established near primary Minor Forest Produce procurement centers and local haat markets to facilitate the sale of produce by tribal communities. There are over 5,000 haats in tribal areas; these are being modernized in a phased manner with amenities such as permanent structures, storage facilities, drinking water, shaded areas, and weighing equipment. VDVKs can also partner with private entities or non-profit organizations for the value addition and marketing of their products. TRIFED provides market intelligence to VDVKs, including daily market rates and e-commerce opportunities, enabling the centers to make informed business decisions.

Emphasis on Branding and Digital Markets

Under the PMJVM, festivals, exhibitions, and artisan fairs are utilized for the branding, promotion, and advertising of tribal products.

Assistance is also provided for the geo-tagging of VDVKs and other scheme assets, obtaining Geographical Indication (GI) tags for tribal products, developing and upgrading IT and e-commerce platforms, and conducting research and development.

4,172 VDVKs Sanctioned; 2,911 Centers Operational

As of July 31, 2026, 4,172 Van Dhan Vikas Kendras (VDVKs) have been sanctioned under the PMJVM. Of these, 2,911 centers are operational, generating sales worth approximately ₹168 crore. A total of 12.48 lakh tribal members are associated with these Van Dhan Vikas Kendras.

VDVKs: A Medium for Women’s Empowerment

A large number of women are actively involved in the collection and sale of forest produce. Consequently, the PMJVM is emerging as a vital instrument for the economic empowerment of tribal women. Through the VDVK model, women are playing roles not merely as laborers but as owners and stakeholders in community enterprises.

Women’s Group Produces Value-Added Goods in Arunachal Pradesh

The Nyagamane Ho Yorbe Medumhagdum Van Dhan Vikas Kendra in the Leparada district of Arunachal Pradesh was established in October 2021, involving 300 women members from self-help groups and local farmers. The center transforms local non-timber forest produce and agricultural crops into marketable products. Items produced here include King Chilli (Bhut Jolokia) pickle, bamboo shoot pickle, turmeric powder (from local turmeric), ginger powder, pineapple jam, pineapple squash, and orange squash. Since 2022-23, sales of these products have reached approximately ₹11 lakh. This initiative has enabled women to reduce their dependence on seasonal agriculture and earn an income throughout the year. Towards a Sustainable Forest Economy through Community Ownership

The Pradhan Mantri Janjatiya Vikas Mission (PMJVM) is creating new livelihood opportunities for forest-dwelling tribal communities by establishing organized systems for the production, processing, and marketing of non-timber forest produce. These products are rooted in local resources and traditional knowledge. PMJVM is working to strengthen the forest-based economy by linking community ownership with market competitiveness. This initiative—connecting natural and community-owned forest products to larger markets—can boost the incomes of tribal communities while also strengthening their entrepreneurial skills. This effort represents a significant step towards inclusive development and can contribute to enhancing the participation of tribal communities in the goal of a ‘Viksit Bharat’ (Developed India) by 2047.

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