Madhya Pradesh is endowed with rich forest wealth. Out of a total geographical area of 3,08,252 Sq.Kms. of the State, 31% of the area is classified as forest area. (Details) There are many important Non wood forest Products (NWFP) found in the forests eg. Tendu leaves or Bidi leaves (Diospyros melonoxylon), Sal Seed(Shorea robusta), Chebulic Myrobolan or Harra (Terminalia chebula), Gum, Chironji (Buchanania lanzan), flower and seeds of Mahua (Madhuca indica) and flowers, seeds, bark & roots of various plant species. Tendu leaves, Sal seed and Kullu Gum are nationalised forest produce whereas the other NWFP are non-nationalised.These non-nationalised NWFP can be collected and traded freely.

In order to give benefits to forest dwellers in collection and trade of forest produce, the Madhya Pradesh State Minor Forest Produce (Trading & Development) Co-operative Federation was formed in 1984. This Federation co-ordinates collection and processing of Tendu leaves, Sal Seed, & Kullu Gum through Primary Forest Produce Co-operative Societies in the districts of the State which are forest produce areas and organises disposal of these produce. In addition, other non-nationalised NWFP are also being collected and traded by the Primary Forest Produce Co-operative Societies.

M.P.State Minor Forest Produce Trading & Development Co-operative Federation is also processing & marketing herbal products & honey under the brand name "Vindhya Herbals". A processing & research facility "Minor Forest Produce Processing & Research Centre" (MFP-PARC in short) has been established at Van Parisar, Barkheda Pathani, Near BHEL, Bhopal. In addition to MFP-PARC, processing units are also working at Rehti (District Sehore), Barman (District Narsinghpur), Katni, Panna & Dewas, These units are also producing herbal products for "Vindhya Herbals" brand. A herbal extraction plant is also coming up at Chhindwara.

73^rd Amendment to the constitution has provided for devolution of power to the Panchayati Raj Institutions. In a landmark legislation, the Parliament enacted the Provisions of the Panchayats(Extension to Scheduled Areas) Act, 1996, which has provided for endowing Panchayats at the appropriate level with the ownership of NWFP.

Consequent to this, Madhya Pradesh became the first state in the country to decide upon transfer of ownership of NWFP to the Gram Sabhas (Local level Panchayati Raj institutions). It was decided by the state Govt to transfer all the net income from the trade of NWFP to the Primary Forest Produce Societies. These Societies will, in turn distribute the profits as under:

• 60 % to the Primary Collector
• 20% for the development of NWFP and regeneration of Forests
• Balance for Infrastructure Development/ Cash Payment.

Functional structure of NWFP Trade