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Government of Odisha brought out path-breaking policy on procurement and trade of NTFP in their Resolution No.5503/ F&E dated 31st March, 2000.According to this policy, Gram Panchayats have been authorized to regulate the purchase, procurement and trade of NTFPs including 68 items of MFPs to ensure that the primary gatherers get fair price for the NTFP collected by them.

The salient features of the Policy:
  • Panchayats are empowered to fix procurement price to be paid to primary collectors in respect of each of the NTFP items listed in the resolution.
  • Traders are required to register themselves with the Gram Panchyat for purchase of any NTFP items.
  • No permits are required to cover transit of any of the NTFP items within the state.
  • No royalty is to be paid or deposited with the Government in respect of procurement of NTFP items.

In order to ensure the payment of fair procurement prices of the NTFP to the primary gatherers, Government of Odisha on 12th October 2001 has brought out a resolution (No.16467/F&E dated 12.10.2001) relating to price fixation mechanism of the NTFP .The resolution came out as a modification over the earlier notification dated 9th July 2001 (Notification No.20665/SSD) through which the existing state level price fixation committee was dissolved and instead a system of price fixation at the district level has been introduced. The resolution says that the District Collector is empowered to fix the minimum procurement prices with respect to all the NTFP items including 68 Minor Forest Products. In this regard District Collector shall consult DFO (Territorial), District Panchayat Officer, District Welfare Officer, Local representative of TRIFED, the local representative of the Odisha Forest Development Corporation Ltd. and the local representative of the Women and Child Development Department.