Scope of NTFP processing and development

Since long, NTFPs have been able to positively influence the economic development of rural areas, be it
processing or simple collection and selling. Still, NTFPs are sided to the formal sector and hence
investments don’t flow in this sector and as a result newer innovation in product development and
processing remain lacking. From a supply chain perspective, collaboration and co-operation are two
attributes which often are found lacking in the NTFP development framework. Adding value to NTFPs or
processing the produce leads to income diversification and contributes to the growth of an ecosystem.

The seasonality of various NTFPs also creates hindrance in the market-scale production capacities of value-
added products. Although, certain processing and bio-engineering techniques have been employed to
enhance the shelf life of some products, the quality which needs to be ascertained for distribution at a global
level often gets hampered. One way around this is to set up plantations or lands dedicated to a NTFP
production rather than just collecting it from the forest. So, the policy makers will have to make a trade-off
between ecological conservation and economic development with regards to livelihood. Another way can be
to develop high yielding variety of commercial NTFPs which can circumvent the supply problem.
What is usually seen is that of the limited number of small enterprise owners who try to enter the NTFP
processed product market also have a diverse portfolio in the agriculture industry. This is because they don’t
want to take the financial risk that comes with such an unsure and underdeveloped product space.