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Pradhan Mantri Van Dhan Yojana — Govt Scheme for UPSC | Vaidra
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Pradhan Mantri Van Dhan Yojana

Ministry of Tribal AffairsactivesocialLaunched: 2018-04-14

About the Scheme

Tribal entrepreneurship scheme providing ₹15 lakh per 300-member Van Dhan Kendra for NTFP value addition.

Target Beneficiaries: 5,26,800 gatherers across 1,756 VDVKs in 174 districts. 27 new clusters sanctioned in FY 2023-24.

Implementing Agency: TRIFED (Tribal Cooperative Marketing Development Federation of India) under Ministry of Tribal Affairs

Official Website →

✦Key Features

  • Establishment of Van Dhan Vikas Kendras (VDVKs) across tribal regions
  • Skill upgradation and capacity building for tribal gatherers and artisans
  • Procurement, processing, value addition, and marketing of Minor Forest Produce (MFP)
  • Formation of tribal producer companies/collectives for better market access
  • Provision of necessary tools and equipment for value addition activities
  • Technological support and market linkages for tribal products

✓Eligibility Criteria

  • Members of tribal communities as defined by the government
  • Tribal gatherers, artisans, and entrepreneurs
  • Participation in Van Dhan Vikas Kendras (VDVKs) or tribal Self Help Groups (SHGs)
  • Residing in tribal-dominated areas where MFPs are abundant

★Benefits

  • Enhanced income and improved livelihoods for tribal communities
  • Reduced exploitation by middlemen due to direct market linkages
  • Skill development and entrepreneurship opportunities in value addition
  • Promotion of sustainable harvesting and management of forest resources
  • Empowerment of tribal women and youth through economic activities

▶Application Process

  • Formation of tribal Self Help Groups (SHGs) in identified clusters
  • Registration of SHGs with TRIFED or the designated implementing agency
  • Identification and establishment of Van Dhan Vikas Kendras (VDVKs)
  • Training and capacity building provided to tribal members for value addition
  • Procurement, primary processing, and value addition of Minor Forest Produce
  • Marketing and sale of value-added tribal products through various channels

₹ Budget Allocation

26000

Funding Ratio (Centre:State): 100% Central Government (via TRIFED)

Exam Relevance

GS Paper: GS2

Prelims Relevance7%
Mains Relevance9%

Syllabus Tags

Tribal welfare and developmentMinor Forest Produce (MFP)Livelihood generation and rural economySelf-Help Groups (SHGs) and cooperative modelsInclusive growth and social justiceSustainable development and forest rightsGovernment schemes for vulnerable sections

Historical Context

Launched in April 2018 to improve tribal incomes through value addition of MFPs, which account for a major part of their cash income.

Exclusion Criteria

  • Non-tribal populations (minimum 90% of SHG members must be tribal)
  • Urban-based SHGs not involved in forest produce

Sub-Schemes

MSP for MFP

The mother scheme providing a price floor for forest products

Challenges

  • Difficulty in maintaining standardized quality for retail markets
  • Weak supply chain and cold storage in deep forest areas
  • Dependence on TRIFED for market linkages
  • Digital divide in managing SHG accounts

Reforms & Recommendations

  • Direct tie-ups with global organic food chains
  • Providing solar-powered processing units to remote VDVKs
  • Simplifying the certification process for 'Organic Forest Produce'

Performance Statistics

Metric

3,900+

Source: TRIFED

Metric

12 Lakh+

Source: Ministry of Tribal Affairs

Critical Analysis

PMVDY is a significant move from 'charity-based' tribal welfare to 'entrepreneurship-based' empowerment. By focusing on Minor Forest Produce (MFP), it targets the primary source of livelihood for 5 crore tribals. The Van Dhan Vikas Kendra (VDVK) model mimics the success of Amul but for forest products. The challenge lies in 'Brand Building' and competing with established FMCG giants in the retail space. Furthermore, climate change impacts the predictability of forest produce, adding a layer of risk to these tribal enterprises.

SDG Linkages

SDG 1: No PovertySDG 5: Gender EqualitySDG 15: Life on Land

Constitutional Backing

Article 46 - Promotion of educational and economic interests of STs5th and 6th Schedules - Administration of Tribal AreasForest Rights Act, 2006 (FRA)

Technology Used

Van Dhan Soft (Monitoring App)E-commerce platforms (Tribes India)Geographical Indication (GI) Tagging

Success Stories

Champion State for Van Dhan

Key Takeaways

  • Creation of Van Dhan Vikas Kendras (VDVKs)
  • Formation of SHGs with 15-20 members (300 members per Kendra)
  • Rs. 15 Lakh grant per VDVK for equipment and training
  • Focus on 'Tribal Brand' development

Probable Questions

How does the Van Dhan Yojana aim to transform the tribal economy from a state of subsistence to entrepreneurship?

ModerateHigh

Mains Answer Fodder

Keywords: 'Value Addition', 'Tribal Entrepreneurship', 'Minor Forest Produce (MFP)', 'Forest-based Livelihoods'. Link with 'Aatmanirbhar Bharat' and the 'Panchsheel Principles' of tribal development.

Convergence Schemes

  • MSP for MFP Scheme
  • NRLM (National Rural Livelihoods Mission)
  • SFURTI (Ministry of MSME)

Sector Tags

Social JusticeTribal WelfareLivelihood