Preserving Culture, Promoting Prosperity: The Success Story of Pradhan Mantri Van Dhan Yojana

Introduction

The Pradhan Mantri Van Dhan Yojana (PMVDY), or Van Dhan Vikas Yojana (VDVY), stands as a pioneering initiative launched by the Ministry of Tribal Affairs, Government of India, aimed at elevating the livelihoods of tribal communities. 

Inaugurated by Prime Minister Shri Narendra Modi on April 14, 2018, during the celebrations of Ambedkar Jayanti in Bijapur, Chattisgarh, the scheme seeks to empower tribal communities by establishing sustainable value chains for forest-based products. 

Key Objectives

At its core, the Van Dhan Vikas Yojana seeks to generate livelihood opportunities for tribal gatherers, transforming them into entrepreneurs. The initiative is focused on setting up tribal community-owned Van Dhan Vikas Kendras (VDVKs) in predominantly forested tribal districts. Each Kendra comprises 15 tribal Self-Help Groups (SHGs), with up to 20 tribal members in each group, totaling approximately 300 beneficiaries per Kendra. The initiative is 100% centrally funded, withTribal Co-operative Marketing Development Federation of India (TRIFED) providing Rs. 15 lakhs for each 300-member Van Dhan Kendra.

Core elements of PMVDY

The PMVDY program is built on four foundational components: 

• Van Dhan Clusters

• Van Dhan Kendras 

• Van Dhan Vikas Kendra

• Van Dhan Mission Directorate

Implemented across 20 states and 2 Union Territories, this initiative has positively impacted more than 2.5 million tribal families. The scheme has led to the establishment of over 10,000 Van Dhan Clusters and 5,000 Van Dhan Kendras, resulting in the generation of employment opportunities totaling over 10 million man-days. Notably, it has contributed to a more than 20% increase in the income of tribal communities, while simultaneously improving the marketing of forest products and mitigating exploitation.

Implementation

The Ministry of Tribal Affairs (MoTA) collaborates with state governments to implement the Pradhan Mantri Jan Dhan Yojana (PMJDY). The scheme unfolds in two distinct phases:

1. Phase I (2016-2019): Primarily focused on the establishment of Van Dhan Clusters and Kendras.

1. Phase II (2019-2024): Emphasizes the reinforcement of existing Clusters and Kendras, with a specific focus on promoting the marketing of forest produce.

The implementation of PMJDY involves the following steps:

1. Identification of tribal communities dependent on forests.

2. Organization of these communities into self-help groups (SHGs).

3. Formation of Van Dhan Clusters.

4. Establishment of Van Dhan Kendras.

5. Provision of financial, training, and marketing support to SHGs.

6. Continuous monitoring and evaluation of the scheme's progress.

It adopts a three-tiered implementation process, involving the establishment of Van Dhan Vikas Kendras at the village level, Van Dhan Vikas Sanrakshan Samitis at the cluster level, and Van Dhan Vikas Samuh at the district level. The scheme envisions the establishment of 50,000 Van Dhan Vikas Kendras across the country, benefiting around 10 lakh tribal entrepreneurs.

The scheme encourages a sense of ownership among tribal gatherers through a contribution of Rs. 1000 per member. Panchayats and district administrations play a pivotal role by providing operational premises to SHGs. Importantly, tribal gatherers are not confined to Non-Timber Forest Produce (NTFP) gathering and value addition; the scheme allows engagement in farming, agricultural production, and post-harvest processing.

Branding, Packaging, and Marketing

A crucial aspect of the scheme is the emphasis on branding, packaging, and marketing. SHGs are trained to adopt learnings from training programs and develop business plans aligned with global export and retail standards. Van Dhan Kendras are provided with marketing and promotion platforms through convergence initiatives with industry partners, creating local value supply chains and establishing a global presence for tribal products.

Advantages of the scheme

1. Livelihood Enhancement: The scheme has aided in uplifting the livelihoods of tribal communities by providing them with a platform to enhance the value of their forest produce. This has the potential to increase the income of both individual tribal members and communities as a whole.

1. Value Addition to Forest Produce: The program concentrates on enhancing the value of non-timber forest produce (NTFP) by encouraging processes such as processing, packaging, and branding. As a result, this has led to the elevation of the market value of these products, ultimately benefiting the tribal communities engaged in collection and processing.

1. Skill Development: The Van Dhan Yojana has also provided training and skill development to tribal individuals, empowering them with the necessary capabilities for processing and marketing forest produce. This, in turn, fosters entrepreneurship within tribal communities.

1. Employment Generation: Through the promotion of value addition and the establishment of Van Dhan Vikas Kendras (VDVKs), the program actively contributes to the generation of employment opportunities in tribal areas. This has alleviated issues related to unemployment and underemployment among tribal populations.

1. Conservation of Forests: The program's emphasis on sustainable harvesting and adding value to non-timber forest produce has promoted responsible and sustainable forest management practices which, in turn, supports the conservation of forests and biodiversity in tribal regions.

1. Market Linkages: The scheme also established a direct market link for tribal products, eliminating middlemen and ensuring better returns for tribal communities by connecting them directly to markets.

1. Promotion of Tribal Culture: Recognizing the traditional knowledge and skills of tribal communities, the Van Dhan Yojana integrates these cultural aspects into the value chain. This approach aids in preserving and promoting the unique cultural identity of tribal groups.

1. Financial Inclusion: Through the formation of Self Help Groups (SHGs) and cooperatives, the Van Dhan Yojana actively promotes financial inclusion among tribal communities. This enhances their access to credit and financial resources, contributing to overall economic empowerment.

The Van Dhan 2020 report

Key Highlights from the Van Dhan Yojana March 2020 Report:

1. Allocated Fund: An earmarked fund of Rs. 16,579 lakh dedicated to the implementation and execution of the scheme.

2. TRIFOOD Collaboration: A collaborative initiative between the Ministries of Tribal Affairs and Food Processing Industries aimed at boosting tribal income.

3. Technology for Tribes Program: A comprehensive Entrepreneurship Skill Development Program spanning 27 states, managed by TRIFED in conjunction with prestigious institutions like IITs, IIMs, TISS, and others.

4. NTFP Research Initiatives: TRIFED is actively involved in research on Non-Timber Forest Produce (NTFPs) to develop cost-effective methods that enhance the utilization of Minor Forest Produce (MFP).

5. Van Dhan Vikas Kendras: The establishment of 1,205 Kendras, each comprising 15 Self-Help Groups (SHGs), benefiting a total of 3.7 lakh individuals.

6. Affiliation and Funding: Affiliation with 18,075 Self-Help Groups, all of which receive complete government funding.

7. Projected Sales Growth: An ambitious sales projection estimates Van Dhan Yojana products to reach Rs. 10,000 crores by 2023, showcasing substantial growth from Rs. 300 crores in 2019.

Conclusion

The Pradhan Mantri Van Dhan Yojana has succeeded in providing the fruits of a free market system while also ensuring that the Tribal communities are not exploited for their resources. 

Tribal communities from across the globe have been forced to leave their practices and cultures in order to survive in the modern world, but the PMVDY scheme has promoted entrepreneurship in Indian tribal communities while also preserving their cultures and practices.