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Odisha Launches LABHA: A 100% State-funded MSP Scheme for Tribal Empowerment

In a significant move towards the development and empowerment of approximately one crore tribals in Odisha, the state government, led by Chief Minister Naveen Patnaik, has approved the launch of the ‘LABHA’ scheme. LABHA, an acronym for Laghu Bana Jatya Drabya Kraya, is a 100% state-funded Minimum Support Price (MSP) for Minor Forest Produce (MFP).

LABHA scheme: Key Features

  • MSP Determination: The state government will annually determine the Minimum Support Price for the minor forest produce.
  • Primary Collector Empowerment: Tribal primary collectors will sell minor forest produce at MSP through procurement centers managed by TDCCOL (Tribal Development Cooperative Corporation of Odisha Limited).

  • Integration with Mission Shakti: LABHA Yojana will collaborate with Mission Shakti’s Women Self-Help Groups (SHGs), benefiting the majority of tribal women who constitute 99% of primary collectors.
  • Digital Transactions: Amounts collected will be transferred through Direct Benefit Transfer (DBT) to the beneficiary’s account, with SHGs or designated agencies receiving a 2% commission.
  • Procurement Automation System: Utilizing technology for transparency, this system will capture MFP collection details, ensuring fair benefits for tribal communities.
  • Value Addition and Processing: TDCCOL will conduct e-tendering for further sale, exploring value addition and processing units to maximize returns.
  • Tamarind Processing Plant: The state government plans to establish a 25-crore tamarind processing plant in Rayagada, utilizing MFP from LABHA Yojana for value addition.
  • Elimination of Distress Sales: LABHA Yojana aims to eradicate distress sales by empowering tribals and reducing dependency on middlemen.

Important Questions Related to Exams

  1. What is the acronym LABHA in the context of Odisha’s new scheme?
  2. Who heads the State Cabinet that approved the LABHA scheme?
  3. What does MSP stand for in LABHA Yojana?
  4. How is the Minimum Support Price determined under LABHA Yojana?
  5. Who manages the procurement centers for minor forest produce in LABHA Yojana?
  6. How does LABHA Yojana integrate with Mission Shakti’s efforts?


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