Odisha Government Launches “LABHA Yojana”

• 31 Jan 2024

On 29^th January, 2024, Odisha's Cabinet, led by Chief Minister Naveen Patnaik, announced the initiation of the 'LABHA Yojana,' a state-funded MSP scheme for minor forest produce (MFP), with potential far-reaching effects on the tribal population.

Key Points

• Empowering Tribals: The LABHA Yojana aims to determine the MSP for MFP annually, ensuring that primary collectors, primarily tribals, can sell their produce at the fixed MSP.
• The scheme integrates with Mission Shakti's Women SHGs to enhance the participation of tribal women.
• Financial Allocation: The State government has allocated an initial Rs 100 crore for the LABHA Yojana, with SHGs or other agencies receiving a 2% commission.
• The amount will be transferred as Direct Benefit Transfer (DBT) to the beneficiary's account, targeting the inclusion of over 30,000 tribal beneficiaries.
• Procurement Automation: The procurement automation system, aligned with the 'Vision 5T' framework, utilizes technology to ensure transparency.
• It captures MFP collection details, primary collector information, and procurement points, enhancing efficiency and benefits for tribal communities.
• Further Initiatives: To prevent distress sales to middlemen, the LABHA Yojana eliminates intermediaries. The TDCCOL will adopt e-tendering for additional sales and explore value addition and processing units.
• Tamarind Processing Plant: The government will invest Rs 25 crore in a tamarind processing plant in Rayagada, utilizing tamarind procured through the LABHA Yojana for value addition, benefiting tribal communities.