Odisha’s LABHA Scheme: Objective, Overview, Importance & Key Details

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The Odisha government has taken a historic step by launching the ‘LABHA’ Scheme or Yojana, a 100% State-funded Minimum Support Price (MSP) scheme for Minor Forest Produce (MFP).

This initiative is set to impact the large tribal population of Odisha, constituting 23% of the total population, with far-reaching implications for their socio-economic well-being.

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LABHA scheme in Odisha full form

The LABHA scheme in Odisha stands for “Laghu Bana Jatya Drabya Kraya” Yojana.

It is a 100% State-funded minimum support price (MSP) scheme specifically designed for minor forest produce (MFP).

This initiative, announced by the Odisha government, aims to benefit the large tribal population in the state, which constitutes nearly 23% of Odisha’s total population.

Through the LABHA Yojana, tribals can sell their minor forest produce at a fair and guaranteed price, providing them with economic support and stability.


LABHA, officially known as ‘Laghu Bana Jatya Drabya Kraya’ Yojana, aims to ensure a fair and fixed MSP for MFP, benefiting the tribal communities involved in collecting these resources.

The scheme is designed to eliminate the historical challenge of MSP benefits not reaching the intended beneficiaries in Odisha.

Implementation and Mechanism

Under LABHA, the State government will annually determine the MSP for MFP.

The Tribal Development Cooperative Corporation Limited of Odisha (TDCCOL) will oversee the procurement process, with primary collectors, often tribal individuals, able to sell MFP at the MSP.

The scheme leverages the participation of Mission Shakti’s Women Self Help Groups (SHGs), empowering women as a crucial part of the process.

Financial Allocations and Benefits

Initially earmarked at ₹100 crore, LABHA will provide a 2% commission to SHGs or other agencies involved.

The funds will be transferred directly to the beneficiaries‘ accounts through the Direct Benefit Transfer (DBT) system.

With an initial goal of bringing 30,000 tribal beneficiaries into the scheme, the government anticipates reaching over one lakh beneficiaries soon.

Technology Integration for Transparency

Aligning with the ‘Vision 5T’ framework (teamwork, technology, transparency, and time leading to transformation), the procurement process will be automated, capturing details of MFP collection, primary collectors, and procurement points. This technological integration aims to enhance transparency and maximize benefits for tribal communities.

Value Addition and Processing

To further benefit tribals, the TDCCOL will undertake e-tendering for further sales and explore opportunities for value addition and processing units. Additionally, the government plans to establish a tamarind processing plant in Rayagada, with an estimated investment of ₹25 crore, utilizing tamarind procured through the LABHA Yojana.

Additional Initiatives

In parallel, the Odisha government has approved the establishment of a Commission for the Preservation and Promotion of Tribal Languages.

This initiative reflects a commitment to preserving and promoting the 21 tribal languages in the state. The government is also pushing for the inclusion of these languages in the 8th Schedule of the Indian Constitution.

Importance and Conclusion

LABHA Yojana holds significant importance in empowering tribal communities, eliminating distress sales, and ensuring a fair share of benefits for those involved in MFP collection.

The government’s multi-faceted approach, including technological integration, financial incentives, and language preservation efforts, reflects a comprehensive strategy for the holistic development of tribal populations in Odisha.


AI Content Disclosures:

ChatGPT is used to enhance the language and add proper subheadings to increase the readability of the data provided from “The Hindu News Paper”.

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