Financial Daily from THE HINDU group of publications Wednesday, Apr 21, 2004 |
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Industry & Economy
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Rural Development `Velugu' project for lac extraction yields good returns in AP M. Somasekhar
Hyderabad , April 20 IN the tribal heartlands of Adilabad district in Andhra Pradesh, for the landless people surviving on what the forests generate, a new farm activity promoted by the intervention of the Society for Elimination of Rural Poverty (SERP) has raised hopes of greater economic return. Extracting lac, which has tremendous export market and reaching the produce to the traders has, for years fetched the landless tribals and the village poor a meagre Rs 15-20 per kg. In the bargain, lack of knowledge on the part of the tribals and greed of the traders led to felling of the trees itself causing severe loss of natural resources. Having studied the prevailing practices, SERP through its `Velugu' project, trained the villagers on ways of extracting lac from the trees of bear, kusum and modhuga. Next, it was reached to the traders from Madhya Pradesh, who gave a price of Rs 50 per kg during 2002-03, explained Mr T. Vijay Kumar, Chief Executive Officer, SERP. After establishing certain linkages for scientific extraction, transportation and trading, lac produced from the Adilabad forests fetched a handsome price of Rs 70 per kg when sold directly to the traders from Kolkata, during the 2003-04 season. "The big achievement is the increase in overall production and systematic approach to the exploitation of this non-forest timber produce", Mr Vijay Kumar told Business Line. India is a major source for lac and shellac, which are used in pharma and food industry as well as in bangles. It commands a good price as well. Studies by SERP have shown that about one lakh landless people in the Telangana region can benefit in the next three to four years through proper exploitation of lac. The districts of Adilabad, Nizamabad, Khammam and Warangal are the main producers. The potential earning from this predominantly seasonal activity is in the range of Rs 6,000-Rs 10,000. At present, about 8,000 landless poor are benefiting. Lac is available predominantly in Madhya Pradesh, Jharkhand, Orissa and Central India, explained Mr K.P. Rao, a Marketing Consultant to Velugu. India exports to around 53 countries with an earning of around Rs 100 crore. SERP had sought the help of the Indian Lac Research Institute (ILRI), Ranchi, in both surveying the lac trees and also in training personnel to ensure optimum collection without harming the trees. In Adilabad alone, the ILRI estimated a total of about 15 lakh trees harbouring lac. The production was in the range of 1,000 quintals and at a price of Rs 70 per kg, the revenues earned were Rs 75 lakh. The Shellac Export Promotion Council, Kolkata, was also impressed by the growth of lac collection. In Nizamabad, potential of 38 lakh trees and in the entire Telangana region around 50-60 lakh trees showing the immense prospects to the landless poor had been identified, Mr Rao said. The SERP intervention has catalysed an organised collection and promotion of lac in Andhra Pradesh and brought into play a systematic approach to its exploitation so that the people involved would be benefited, Mr Vijay Kumar said.
More Stories on : Rural Development | Andhra Pradesh
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