1. BACKROUND : The Forest Department Government Of Maharashtra , is preparing a Natural Resource Management Project for seeking financial assistance from the World Bank.

1.1 The overall goal of the M.N.R.M. project is "Rehabilitation , maintenance and utilization of forest resources on sustainable basis for the benefit of the community. "

1.2 The development objective for the Maharashtra Natural Resource Management Project (MNRMP) is "to enhance livelihood means of forest fringe communities on sustained basis through participatory natural resource management ." It is envisaged that the forest should be managed for conservation and productivity enhancement through active participation of the forest fringe poor communities in micro planning , implementation and monitoring processes aimed at forest conservation and natural resource management .

1.3 The project aims at expanding the participatory forest management arrangement in mainly the forested regions of Maharashtra inhabited with majority of the forest dependent communities facing high and growing incidence of poverty due to rapid degradation of the valuable forests./

1.4 The implementation of JFM is aimed at providing alternate employment opportunities to the Forest dependent people. Some income from Non-Wood Forest products like fodder grass and gum etc. has already started flowing to people. The landless and the poor, especially the tribals are looking for the continued support. Withdrawing support to the on going activity , particularly at this stage, will adversely affect the poor and sustainability of the programme will become difficult. It is in this context that augmentation of NWFP resources to generate opportunities for self employment is an important component of the M.N.R.M. project.

CONSERVATION AND DEVELOPMENT OF NWFP

NWFP plays a major role in the economic upliftment of the poor people living in the forest areas . A number of NWFP items are collected by the forest dwellers either for their personal use or for sale. Raising plantations of NWFP over suitable sites would certainly benefit the poor forest dwellers. The NWFP species for raising plantations shall be identified for each village at micro planning stage itself. If the site conditions permit, plantation would be taken up under this programme . Tribals use a number of medicinal plants and there exists a good market for many medicines prepared from such plants. Raising plantations of medicinal plants would help the forest dependent communities.

However , as the available sites are mostly degraded , mainly herb and shrubs varieties can be raised for which the gestation period is small. The tree varieties can be restricted to areas with good soil depth.

It is envisaged that about 33000 ha area would available for NWFP plantations including medicinal plants.

3.1 Extent of Resource base : Maharashtra State is endowed with rich and diverse Forests spread over 7 different agroclimatic zones. The total forest area is 6.4 million hectares, most of which has productive potential of non-word forest produce ( NWFP) : Maharashtra Forests have a variety of NWFP. The number of commercial exploied NWFP is around 100.

3.2 System of collection and disposal of NWFP

A) Nationalised Forest Produce : Apta leaves (Bauhinia recemosa ) and Tendu leaves (Diospyros melaloylon) are nationalised forest produce and Maharashtra State is vested with monopoly in the trade of those items as per the Maharashtra Forest Produce (Regulation of Trade) Act 1969. A well established and streamlined system of collection and sale of these items is in place.

Gram Panchayats are provided with ownership rights on 33 types of minor forest produce (MFP) occuring on Government land as per the Maharashtra Transfer of Ownership of Minor Forest Produce in Scheduled Areas and the Maharashtra Minor Forest Produce (Regulation of Trade) (Amendment) Act 1997. However Maharashtra State Co-operative Tribal Development Corporation (MSCTDC) is authorised to procure the said MFP for which it has to pay royalty @ Rs.5 per quintal of MFP to the Gram Panchayats concerned. As per the Maharashtra Tribal Economic Condition (Improvement) Act 1976 and the Government notification of Tribal Development Department dated 18-5-1996, MSCTDC is authorised to procure notified MFP in notified tribal areas ( other than Scheduled Areas)

Other Non Wood Forest Produce : The other NWFP items (all the MFP) in non-tribal areas are disposed of locally by the concerned DCFs throgh public auction. Priority is given to the Co-operative Societies and Gram Panchayats for alloting NWFP units.

The actual sustainable productive capacity of various NWFP is not very clear. The quantity consumed by the local people for their genuine domestic use and also the magnitude of removal is not known. The production of NWFP from uncultivated and cultivated private land is also not known. However, it is generally reported that most of the NWFP requirement of industries is met from forest area overtly and covertly. The rough estimates are available regarding the items sold by Forest Department by public auction and also the items procured by MSCTDC. The yearly revenue from NWFP excluding bamboo, grass, tendu, apta is about Rs. 135 lakhs. The local people are very casual in collecting and have no much concern for sustainable harvesting. FD will have to educate, convince and involve them in systematic and scientific collection, storage, value addition and marketing etc. Linkages have to be developed to sell the produce directly to the industries. Capacity building of the local communities need to be addressed. There is need to stop destructive harvesting.

4.1 The Forest Department, Govt. of Maharashtra, is preparing a forestry project to be posed to the World Bank for financial assistance. The project aims at forest conservation and development by addressing livelihood issues of forest-fringe communities. "Poverty alleviation" in project area is the main consideration to decide eligibility of investment components for incorporation in the project as well as the key indicator to adjudge efficacy of the project. The output of this study is to be used as an important input for project preparation and appraisal in the 14 districts of Maharashtra state indicated under Annexture II

4.2 There is an increasing realization that NWFP contribute significantly to the livelihood needs of the forest-fringe communities, both for self consumption and income generation through wages and sale of surplus collection. A detailed note outlining occurrence of important NWFP items, institutional arrangements for collection and marketing, legal instruments for promoting trade and transferring ownership rights to local bodies in Scheduled Areas is appended (Appendix-I). In Maharashtra almost 100 different items are traded at present under the broad category of NWFP. Initially (at the level of primary gatherers) most of these items are traded non-formally making it difficult for the Forest Department to assess their real economic value. There are indications that the value of such NWFP items appreciates progressively with second and subsequent level of trade, at times coupled with some degree of processing. This study is commissioned to trace existing marketing systems, from primary gatherers through final processing units/ end-users, in respect of important NWFP items in Maharashtra; assess physical and financial volumes of transactions involved therein and compute backwards the "value at source" after offsetting all costs and profits. In addition, the assignment is expected to suggest essential and efficient market support where necessary for improving earnings at the level of primary gatherers. There is a need to study the following aspects Viz availability of important commercially exploitable medicinal plants, cultivation practices, harvesting techniques, season and time of harvesting, value additional techniques marketing linkages etc.

5.1 To assess potential of NWFP items traded non-formally or in unorganized sector, in income generation for primary gatherers in the 14 target districts of maharashtra state.

5.2 To identify areas of intervention, where necessary, for enhancing collection and improving marketing of NWFP items, prioritized according to their economic potential in the target district.

5.3 To assess the availability of commercially exploitable medicinal plants, and to systematize the exploitation of such plants products on sustainable basis, suggest suitable practices for sustainable in situ conservation and suggest healthy cultivation practices, value additions, harvesting techniques, post harvesting storage techniques and to indicate marketing linkages. etc.

6.1 To undertake market survey of important NWFP items, identified in consultation with the Forest Department, Maharashtra State.

6.2 To assess volume of trade (physical and financial) in above items until the end-users/bulk consumers.

6.3 To analyze cost components and value additions accrued at successive levels and work backwards in-situ value that could be paid profitably to gatherers.

6.4 To shortlist NWFP items which have potential of high economic value on regular and suitable basis for primary gatherers, particularly items which are non- perishable and have extensive marketing potential. This information is to be collected from local vaidyas, local forest staff and N.G.O.

6.5 To identify factors inhibiting trade of NWFP items, where a formalized market is non-existent at the level of primary gatherers.

6.6 To suggest efficient marketing mechanism and institutions, where necessary, with attendant grading and preliminary processing, for maximizing income of primary collectors.

6.7 To assess capacity of Forest Protection Committees (FPCs) for handling collection and trade of NWFP items and suggest necessary measures to augment the same.

6.8 To prepare a Directory of NWFP traders and bulk consumers in the State of Maharashtra.

6.9 To develop suitable training modules and packages, manuals both for forest staff and VSS members and to train a select group of about 30 forestry personnel drawn from the project areas in market survey techniques / methodology who can be used for training the VSS members in the project area.

6.10 To suggest ideal exploitation/harvesting technique including proper season for harvesting and post harvesting care.

6.11 To suggest propagation techniques of the commercially exploitable species.

6.12 To study the legal and policy issues and suggest measures to remove blockages if any. The role of Tribal Development Corporation in monopoly purchase and marketing mechanism vis-à-vis the role of Gram Panchayat or Gram Sabha in exercising right over the 33 items of NWFP given under 73^rd Amendment of the Constitution in Scheduled areas. The likely conflicts and how the same should be resolved indicated.

7. Methodology for the study

7.1 The Consultants are expected to outline the methodology in their technical proposal. Some important aspects of the study, which should find a place in their proposal, are indicated below.

7.2 The Consultants at the outset will prepare a detailed Inception Report. This report will be prepared after initial visits in project area as well as important trade centers. The Inception Report will duly consider inputs from the Forest Department, Maharashtra State Cooperative Tribal Development Corporation, Federations/Chambers of traders and other organized/well informed sources.

7.3 The Consultants will make a reconnaissance of the project area to prepare a long list of NWFP items occurring in those areas. This list will be prepared after acquiring collection and trade related information from local knowledgeable sources as well as available secondary sources. Subsequently, the consultants will organize a workshop of about 25 persons (identified by the Forest Department) to discuss their findings. At the end of this workshop a short list of priority items of NWFP will be finalized for detailed study. Subsequent trade/market study and attendant tasks will focus on the items included in the short list.

7.4 The consultants will then undertake a detailed study of trade/marketing of short listed items involving, inter-alia, assessment of the volume of trade (physical quantity and monitory value), identification of important consumption centers/ entities, collection of information related to prices, costs and profits. The information will be collected through structured queries as far as possible. Where well-documented data is not available informal sources will be tapped for collecting necessary information. The sources will be properly recorded. Concurrently, the existing marketing and semi-processing arrangements will be studied and documented right up to the stage of end-users/bulk consumers. The Consultants will submit a Directory of traders/bulk consumers in NWFP items as one of the outputs. The main out put of this study will be provided in the form of a detailed report recommending the priority NWFP items with high potential of income generation for primary gatherers along with interventions needed for augmenting their income. These recommendations will be presented to a group of referees nominated by the Forest Department for discussions and vetting.

7.5 The Consultants will study, in detail, the status of NWFP atleast in one village in each district, assess their capacity & FPC’s and wherewithal to handle collection and trade of these items. Where a proposition to assign collection and marketing of such items to FPCs is considered viable, the Consultants would suggest essential measures needed for this purpose along with costs involved.

7.6 The Consultants will undertake an intensive training programme for about 30 personnel of the Forest Department in survey of markets of NWFP followed by fieldwork for imparting first hand experience. :

7.7 To identify big, medium, small registered/ unregistered Herbal and Ayurvedic industries in Maharashtra with the help of concerned Government Department and monthwise supply and utilization of various plant parts, structure of procurement & value addition.

7.8 Organising interaction with the stake holders viz. villagers, industries, local traditional health practioners, officials of forests department, tribal development department, MSCTDC, NGOs working in the field etc.

7.9 Study of the supply line of NWFP- weekly bazars, collection of NWFP by middleman from the local weekly bazars , the end users etc.

7.10 Interaction with MSC TDC, Government of India undertakings concerned with NWFP trade.

7.11 Consultation with Research Organisations engaged in this field as well as institutions like FRI Dehra Dun, TFRI Jabalpur, II FM Bhopal etc.

7.12 Identify the Government organisation or Private individuals and organization who are practicing nursery and plantation of various NWFP including medicinal plants and to study various technique and cost benefit.

7.13 Identify those institutes who deal with identification of plant parts, identification on the basis chemical analysis of powdered plant parts/ extracts / mixtures.

7.14 Identify village level Traditional Herbal Medicinal Practitioners and organise districtwise meeting/ workshop/ at weekly bazar places/ Tahsil & district level to document fast eroding traditional knowledge.

8. Data, Services and facilities to be provided by the client.

8.1 Maps and relevant data available with the forest department (FD) will be provided to the consultant. Rest Houses will be made available to the

consultant as per availability at normal charges. The client’s personnel will be available for interaction during mutually agreed period.

Duration of assignment

The assignment is expected to last for about eight months. In all approximately ten persons moths of consultants’ input would suffice for accomplishing the tasks.

10.1 The Consultants will submit the following outputs/documents according to the time schedule indicated therein.

11. Review Committee

11.1 A committee consisting of the following members would intermittently review the work of the Consultants.

Principal Chief Conservator of Forests, Maharashtra State

Chief Conservator of Forests (Evaluation and Nationalization)

Chief Conservator of Forests (Production)

Chief Conservator of Forests (Wildlife)

Officer in-charge of the Project Co-ordination Unit.

11.2 All outputs will be reviewed by the above Committee, and their acceptance will be subject to approval the Review Committee. Methodology, Work Plans and potential sources of information will also be vetted and approved by the said Committee.

12. Composition of Consultants’ team

12.1 The Consultants will provide multi-disciplinary team of experts drawn from the related fields, such as, forestry, marketing, processing industries (in particular, pharmaceutical industry). It will be desirable to include an export Texonoment, an Ayurvedic Physician.

13. Payment Schedule

The consultant will be extended the full support of the Project Preparation Team created for the Proposed Maharashtra Natural Resource Management Project . The Government Of Maharashtra and the World Bank, through their designated representatives (see AnnexV) , would provide data and information that would be relevant to the preparation of the NWFP study(including documents from the past, ongoing proposed projects in the region and other relevant information ), identify contacts in the projects areas , and facilitate consultation with agencies affected groups , potential project beneficiaries and others. The consultant would be responsible for contacting the individual identified and synthesize and analyze the information available. Some background information is given in Annexure I.

A. Nationalized Forest Produce : Apta leaves (Bauhinia recemosa ) and Tendu leaves (Diospyros melanozylon) are nationalized forest produce and Maharashtra State is vested with monopoly in the trade of those items as per the Maharashtra Forest Produce (Regulation of Trade) Act 1969. A well established and streamlined system of collection and sale of these items is in place.

B. NWFP in Scheduled Areas: Gram Panchayats are provided with ownership rights on 33 items of NWFP occurring on Government land as per the Maharashtra Transfer of Ownership of Minor Forest Produce in Scheduled Areas and the Maharashtra Minor Forest Produce (Regulation of Trade) (Amendment) Act 1997. However Maharashtra State Co-operative Tribal Development Corporation (MSCTDC) was authorized to procure these items till 31-12-2001, for which it had to pay royalty @ Rs.5 per quintal to the Gram Panchayats concerned. As per the Maharashtra Tribal Economic Condition (Improvement) Act 1976 and the Government notification of Tribal Development Department dated 18-5-1996, MSCTDC is authorized to procure notified NWFP in notified tribal areas (other than Scheduled Areas)

C. Other Forest Produce: The other NWFP items in non-tribal areas are disposed of locally by the concerned DCFs through public auction. Priority is given to the Co-operative Societies and Gram Panchayats for allotting NWFP units.

D. General Picture of Production of NWFP: The actual sustainable productive capacity of various NWFP is not very clear. The quantity consumed by the local people for their domestic use and also the magnitude of removal is not known. The production of NWFP from uncultivated and cultivated private land is also not known. However, it is generally reported that most of the NWFP requirement of industries is met from forest area overtly and covertly. The rough estimates are available regarding the items sold by Forest Department by public auction and also the items procured by MSCTDC. The yearly revenue from NWFP excluding bamboo, grass, tendu, apta is about Rs.135 lakh. Sometimes, the local people are not much concerned about sustainable harvesting of NWFP. Therefore, the Forest Department will have to address such issues and convince the gatherers regarding systematic and scientific collection, storage, value addition and marketing of NWFP items. Linkages may have to be developed to sell the produce directly to the industries. Capacity building of the local communities needs to be addressed.

E. Clandestine Removal of NWFP: Even rough estimates are not available as to the quantum of clandestine and illegal removal of NWFP and also other plant parts from forests for manufacturing drugs and other herbal products. There are instances of increase in the turnover of the herbal industries due to the upward market demand and the interest developed lately in traditional systems of medicine. The demand for the raw material of plant parts is increasing. Conservative estimates put the economic value of the medicinal plant related trade in India to be of the order of Rs. 1000 crores / year and world trade to be over US $ 60 billion ( Medicinal plants of India, Guidelines for national policy and conservation programmes )

F. Destructive Harvesting: Many plants and plant parts are harvested carelessly causing immense damage to the parent crop. Harvesting of roots, tubers, whole plant, fruits, seeds etc. illegally and in unsustainable manner has put a big question mark on the very survival of some species. The regeneration of certain species has suffered seriously. There is no reliable information available on these issues for initiating corrective action. There is a lack of knowledge base about siliviculture of many such species providing NWFP.