Streamlined Forest Produce Collection and Payment Management

A Case Study of Chattisgarh State Minor Forest Produce Cooperative Federation



The Chattisgarh State Minor Forest Produce Cooperative Federation, hereinafter referred to as "the Federation," is a government organization responsible for the procurement and distribution of minor forest produce in the state of Chattisgarh, India. Minor forest produce, including Tendu Patta and other forest-based items, have been a significant source of livelihood for forest dwellers and tribal communities. In an effort to streamline and digitize the collection and payment process, the Federation successfully implemented an Online Minor Forest Produce Collection and Payment Management System.



Prior to the implementation of the digital system, the Federation faced several challenges:

  • Manual Data Collection

    Data collection from forest dwellers and collectors was entirely manual, leading to errors, delays, and inefficiencies in the process

  • Delayed Payments

    Collectors often experienced delays in receiving their payments due to the cumbersome paperwork and approval processes.

  • Transparency

    There was a lack of transparency in the payment calculation, and collectors had limited visibility into how their entitlements were determined.

  • Large Workforce

    Managing data and payments for approximately 1.2 million collectors across the state was a complex and resource-intensive task.



To address these challenges, the Federation collaborated with a technology partner to develop and implement the Online Minor Forest Produce Collection and Payment Management System. The key features of the solution included:

  • Digital Data Capture

    The system enabled the Federation to digitally capture data about collectors, including their identity, collection details, and entitlements based on government-set Minimum Support Prices (MSPs).

  • Payment Approval System

    An automated payment approval system was integrated into the solution. It verified the collected data and ensured compliance with government policies before initiating payments.

  • Direct Benefit Transfer (DBT

    Payments were transferred directly to the bank accounts of collectors through scheduled commercial banks, eliminating the need for manual intervention and reducing payment delays.

  • Transparency and Accountability

    Collectors gained transparency into the payment calculation process, as the system displayed how their entitlements were determined based on MSPs and collection data.

  • Scalability

    The system was designed to handle the large workforce of 1.2 million collectors efficiently, ensuring that every collector received their rightful payments.



The implementation of the Online Minor Forest Produce Collection and Payment Management System yielded several significant benefits:

  • Timely Payments

    Collectors received their payments promptly, improving their financial stability and reducing economic uncertainty.

  • Reduced Errors

    The digital system minimized data entry errors and reduced the chances of incorrect payments.

  • Transparency

    Collectors gained a better understanding of the payment calculation process, enhancing trust in the Federation's operations.

  • Efficiency

    The system streamlined the entire collection and payment process, reducing the need for manual paperwork and resource-intensive tasks.

  • Government Compliance

    The Federation was able to ensure compliance with government policies and MSPs more effectively.



The successful implementation of the Online Minor Forest Produce Collection and Payment Management System by the Chattisgarh State Minor Forest Produce Cooperative Federation not only improved the lives of 1.2 million collectors but also modernized and streamlined the organization's operations. This case study serves as an example of how technology can be harnessed to bring about positive change in the livelihoods of forest dwellers while enhancing the efficiency and transparency of government operations.

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