Orissa has a rich depository of Sal seeds accounting for 25% of production in the country. It forms primary ingredient for number of products such as oil, soap, animal/ poultry feed, coca-butter that forms a substitute for manufacturing chocolates and tanning purposes etc. For primary collectors Sal seed selling has been an important source of earning both amount-wise and time-wise as seeds are sold in agricultural lean seasons of May & June. The state is rich in Sal forest and Sal trees are seen in most parts of the state except the coastal belt. Total Sal forest areas of the state as per working plan data is 26,18,915 sq. km out of which good Sal forests are found over 19,26,879 Ha. Average seed production per Ha is estimated to be 720 kg in a good seed year.

The financial importance of Sal seed is based on its tremendous and uncharted export potentiality. Though in the neighbouring states of MP and Bihar considerable headway have been made in realising and exploiting export potentiality of Sal seed, Orissa lags behind in this direction. During 1988, there were 10 solvent extraction plants in the State with a combined capacity of more than 1 lakh metric tons.

Till 2006 February, the state government had the monopoly of procuring and marketing of Sal seed ever since it was declared a nationalized item in 1983. Prior to March 2006 Sal seed was collected through agents by paying them commission. As a nationalized item, the price of Sal seed was fixed at Rs.0.90 per Kg which, over a period of time rose to Rs 2.50 to 3.00 per Kg. However, the actual price offered at the primary collectors’ level was much less than official declaration.

In March 2006 Sal seed was deregulated and brought under the purview of Gram Panchayat. The reasons behind deregulating sal seed, as cited by the state, are different. At the same time neighbouring states like Madhya Pradesh and Chhattisgarh continues monopolizing Sal seed. Visualizing possible threats in the management of sal seed due to different policies in different states. RCDC along with the Solvent Extractor’s Association of India, Mumbai, a two-day multi stakeholders’ consultation on Sal Seeds was organized in Raipur during 25th and 26th May 2006. Around 25 participants from Chhattisgarh Forest Department, State MFP federation, industries, solvent extractors association, traders, research institutions and NGOs participated in the meeting. The issues discussed were Sal seed policies and operations, harvesting and post harvesting measures, trade promotion and legislations, conservation, research and development etc. During the consultation some traders had shown interest to come forward and buy Sal seed from Orissa, if some agencies would facilitate the process. With a hope to provide increased price to the primary collectors, RCDC in Orissa planned to facilitate the procurement of Sal seed and subsequently numbers of Buyers- Sellers meetings organised at state and district level. It was planned that local NGOs in different districts should facilitate the procurement of Sal seed through SHGs and other village level institutions.

Banabhuin, a self- help cooperative in Lanjigarh block in Kalahandi district, has been promoted by RCDC. It has been registered under the Orissa Cooperative Registration Act in 2005. Since its promotion, the groups have been involved in trading of different NTFP like tamarind, harra etc. The members of the cooperatives were trained by RCDC and the local counterpart CHARM to get into Sal seed trade. Number of meetings/ trainings were organised to make the members of the cooperatives aware about the policy change, process of procurement etc. The cooperative finally took a lead role in the area and started collecting sal seed. In the mean time the traders were asked to check the quality of the seeds and accordingly price was fixed. The cooperative operated in 4 panchayats of Lanjigarh block of Kalahandi district namely Lajigarh block namely Lanji, Kandhapari, Trilochanpur and Benigan. The price, the traders offered to the groups registered a steady increase of their level of income. The successful operation made by the groups helped them to facilitate in other districts especially in Koraput. SPREAD a local organization in Koraput helped them in collecting Sal seed from Koraput area and the cooperative managed to market the produce at higher prices. The volume of transaction made during the season by the cooperative is discussed in the table below.

At the end of the season, the cooperative could collect 2600 quintal of Sal seed from Lanjigarh area through its SHGs and 200 quintal from Koraput district. In both the areas the collection price was Rs.5.00 and the sell price was Rs. 5.50. In total the cooperative earned a profit of Rs. 1, 80,000 which was shared among the members of the cooperative.

The entire process has built the confidence of the primary collectors and their cooperatives to deal with NTFP, Sal seed in particular, especially on procurement and trade. At the same time RCDC is also emerging as a leader in Sal seed management in Orissa after its denationalization in March 2006. Efforts made in facilitating sustainable trade of Sal seed in changing scenario and creating a viable platform for good trade relationship between the buyers and sellers has made it possible to sell the produce at higher prices by the primary collectors and their organizations. The process has helped in identifying mechanisms to ensure more meaningful link between the primary collectors, their support organizations with trading community and develop a viable linkage with the market. The process has also helped the cooperatives in strengthening their bargaining power for collective interventions in Sal seed.