The Federation is the apex body at the State level and its main functions are as under:

1. To arrange for funds from various banking institutions and to make the necessary amount available to the District Unions.
   
   
2. To obtain accounts from the District Unions for the funds given to them.
   
   
3. To centrally purchase Hessian cloth, Bags and make them available to the District Unions.
   
   
4. To receive the Tendu Green Leafs at the godowns and to market them so that the Government/Societies got maximum profits. Later on, when the Primary Societies became self reliant the work of marketing could also be slowly transferred to these societies or their District Unions.
   
   
5. The Federation and the District Unions get a token commission of Re.1/-. As result of the 73rd Amendment to the constitution, Gram Sabhas have been given ownership rights on MFPs. The State Government has decided that the net income from the trade of MFPs will be distributed as under :
   
   a. 60% to the actual gatherers.
   
   b. 20% for development of the resources.
   
   c. The rest can be utilised for infrastructure development of the village or again distributed to the gatherers.
   
   
6. To issue guidelines to the District Unions for fixing norms of expenditure for collection, handling, godowning and purchase.
   
   
7. To make funds available to the Primary Societies and District Unions as above, out of the net receipts after deducting the revenue of the Government etc.
   
   
8. To draw guidelines and instructions at the State level for proper collection and marketing of Minor Forest Produce.