Over 3,400 Van Dhan Vikas Kendras operational across 28 states, UTs

More than 3,400 Van Dhan Vikas Kendras (VDVKs) are currently operational across 28 states and Union Territories as part of the Centre’s efforts to improve livelihoods and market opportunities for tribal communities dependent on forest produce, Union Tribal Affairs Minister Jual Oram has said. A total of 4,712 VDVKs covering 12.94 lakh beneficiaries have so far been sanctioned, involving an amount of Rs 642.19 crore. Of these, 3,406 centres are operational, according to information provided by the Ministry of Tribal Affairs.

Rs 15 lakh support

The VDVKs are financially supported by the Ministry of Tribal Affairs through the Tribal Cooperative Marketing Development Federation of India (TRIFED) under the Pradhan Mantri Janjatiya Vikas Mission (PMJVM) and the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN).

The Centre provides financial assistance of up to Rs 15 lakh to state governments for setting up each Van Dhan Vikas Kendra.

The assistance can be used for raw materials, training and capacity building, tool kits and machinery, mentoring, packaging and branding, transportation and storage.

However, revolving working capital is not provided to VDVKs under these schemes.

MSP support for produce

Separate support is available under the Minimum Support Price component for procurement of Minor Forest Produce (MFP).

A revolving fund is provided to State Implementing Agencies to purchase MFP from tribal gatherers at the prescribed MSP when market prices fall below that level. The mechanism is aimed at protecting forest-produce collectors from sharp price fluctuations and distress sales.

During 2025-26, Rs 2.50 crore was released to the Meghalaya State Implementing Agency for procurement of minor forest produce.

Funds through TSA

Funds for establishing VDVKs are being released through the Treasury Single Account (TSA) system introduced by the Ministry of Finance.

According to the ministry, almost all State Implementing Agencies have opened TSA accounts. The system is intended to improve oversight of liquidity, prevent government funds from remaining idle in commercial bank accounts and facilitate timely releases for public expenditure.

The Tribal Affairs Ministry has also held discussions with State Implementing Agencies on transferring funds more directly to VDVKs and primary procurement agencies at the ground level.

Some states have already introduced direct transfers to the bank accounts of VDVKs.

Producer enterprises next

Operational Van Dhan Vikas Kendras are also being encouraged to evolve into Van Dhan Producer Enterprises (VDPEs), depending on their performance.

The proposed transition is aimed at strengthening value addition, aggregation of forest produce and market linkages, allowing tribal producers to move further up the value chain instead of limiting their role to collection and sale of raw produce.

One proposal for setting up a VDPE in Madhya Pradesh has received in-principle approval.

Chhattisgarh has 148 centres

Chhattisgarh currently has 148 VDVKs operating under PM-JANMAN and PMJVM.

Since 2013-14, revolving funds totalling Rs 153.66 crore have been released to the state implementing agency for procurement of minor forest produce. This has resulted in purchases worth Rs 467 crore up to 2025-26.

The state agency has also submitted a claim seeking reimbursement of losses incurred during MSP operations, which is under examination.

The ministry said no procurement proposal has been received from Chhattisgarh during the current financial year.

Focus on tribal livelihoods

The Van Dhan initiative seeks to help tribal communities derive greater economic value from forest produce by providing facilities for processing, value addition, packaging and marketing.

The network of 3,406 operational centres and nearly 13 lakh beneficiaries reflects the scale to which the programme has expanded across the country.

The next phase of the initiative is expected to focus increasingly on strengthening market linkages and turning better-performing VDVKs into producer enterprises capable of building sustainable businesses around minor forest produce.