From Forest to Bank: MP Moves to Pay Tribal Women Directly
The Madhya Pradesh government has tightened procurement norms for minor forest produce, mandating direct bank transfers to tribal women collectors and self-help groups, a move aimed at eliminating middlemen and improving price transparency.
The revised mechanism is being implemented across tribal-dominated districts including Shahdol, Mandla, and Dindori, officials confirmed.
The new rules have made an impact on ground. So Cash settlements at haats and procurement centres have been curtailed. Payments for products such as mahua, tendu leaves, and lac are credited directly to verified bank accounts. SHGs must submit weight, quality, and price records before payment release
Officials say the step addresses long-standing complaints of underpayment and delayed dues to women collectors, who form the backbone of the forest produce economy.
“Direct transfers ensure traceability and accountability,” a senior official said in Bhopal, adding that district collectors have been asked to monitor compliance closely.
Early field feedback points to fewer payment disputes and improved income certainty. However, limited banking access, network issues, and digital literacy gaps remain concerns in remote villages.
Civil society groups have called for strict enforcement of minimum procurement prices and regular audits to ensure benefits reach individual women collectors.
By tightening payment channels and formalising earnings, Madhya Pradesh is reshaping its forest produce trade. The success of the move will hinge on last-mile banking access and sustained administrative oversight.
By ANASUYA ROY