The Value Network for Madhya Pradesh Minor Forest Produce Federation: Facing Off Product Diversification Dilemma

Abstract

Commercial forestry sector in India is largely state owned. Madhya Pradesh is a unique state in India in the sense that two different forms of the organizations are working for timber and non-timber production in the state. It’s notable that Government of India has endorsed this model of doing commercial forestry and advised all the states in the country to adapt this model. It becomes important then to review the business model of the state’s forest resources especially the non-nationalized forest produce which is open for private sector. Unlike leading India based business entities like Patanjali, Dabur and Himalaya, the income generated through the network of the MP Minor Forest Produce (MFP) federation (which is government supported entity) is majorly distributing the profits among the collectors of the herbal produce. The thriving of this federation network is essential for the sake of livelihood, conservation and public health. These outcomes are relevant in the context of achieving the sustainable development goals. An independent consultant Mr. Darpan Kumar (pseudonym) analyses the business choices available in the industry and the state of strategic direction of the federation. The study presents the product/business diversification dilemma.