Page 5 - Bankable Projects - IINRG, Ranchi

Foreword

Non-Timber Forest Products (NTFPs) including lac, form valuable means of subsistence,
employment, cash income to growers and collectors and serve as a raw material for a
number of industries. They also play a vital role in ecological balance and sustainable
development. Production of such natural products is greatly influenced by vagaries
of weather and prices. These are consumed directly as food, fodder and medicine.
Lac cultivation is a subsidiary source of livelihood for 7-8 millions of farm families in
Jharkhand, Chhattisgarh, Madhya Pradesh, Maharashtra, Odisha, West Bengal, Andhra
Pradesh, Uttar Pradesh and NEH regions of India. These states are endowed with
abundant natural resources and best for lac cultivation to earn additional income.
Tribal families and other forest dwellers are engaged in unskilled manual work
like collection of NTFPs during the spare time. Lac which is natural secretion of the
lac insect (Kerria lacca) is a NTFP and fall under non-nationalized items. Primary
collectors or their associations get permits from the Divisional Forest Officer (DFO) to
transport and market these forest products. Two strains (kusmi and rangeeni) of lac
insect are cultivated mainly on ber, palas, kusum and Flemingia semialata.
The present publication on recommendation of Research Advisory Committee
(RAC) of this institute, ‘Model Bankable Projects: Lac Cultivation for Livelihood
Security’ contains financial analysis of six potential modules of lac production. To
make this publication more useful, brief introduction of lac cultivation activities and
methodology of cost estimation of lac cultivation have also been included. Reliable
and detailed information on input and output features of lac cultivation will be useful
Bankable Projects
for financial experts and policy makers to execute loan disbursement and repayment
plans in priority sector. Documentation of major production and markets areas will be
helpful in relation to disposal of the produce.

I am sure that the information contained in this Bulletin would be useful to the
stakeholders. I applaud the authors for their efforts in bringing out this Bulletin.

Ranchi (KK Sharma)
Director

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