The recent Covid-19 lockdown in India has disrupted the nation’s rice exports and substantially affected Odisha’s tribal communities by obstructing the sale of Non-Timber Forest Products (NTFP) usually harvested between March and June. This suspension of the supply chain has had far-reaching implications.
The Impact on Sale of Non-Timber Forest Products
The Covid-19 lockdown, unfortunately, coincided with the critical harvesting season for NTFPs, rendering their sale virtually impossible. Forest products are seasonal commodities, and the tribal populations depend on them for a substantial portion of their yearly income. Between March to June, these tribal communities earn around 60%-80% of their total revenues from the sale of NTFPs.
Among the primary NTFPs collected during summer are Wild honey, Tamarind, Mangoes, Tendu leaves, Sal leaves and seeds, Mahua seeds and flowers, Neem seeds, Karanj (Pongamia) seeds, and Tejpatta (Bay leaf). The estimated market value of Odisha’s NTFP sits at around ₹5000 crore.
Proposed Measures
In response to the crisis, there has been a call for the Odisha government to set up operational collection centers under the aegis of the Van Dhan Vikash Kendra scheme. This initiative aims to promote the economic well-being of tribals engaged in the collection of Minor Forest Produce (MFP) and provide a sustainable MFP-based livelihood in MFP-abundant regions. Additionally, it is strongly recommended that the Tribal Development Co-operative Corporation of Odisha takes steps to facilitate the marketing of tribal products.
Disruption of Rice Exports
Due to the lockdown, Indian traders have ceased quotations to foreign buyers due to insecurity regarding the delivery dates of their shipments. Nearly 400,000 tonnes of non-basmati rice and 100,000 tonnes of basmati rice, intended for dispatch in March and April, are either stuck at the ports or in transit because of the lockdown. Subsequently, Indian export volumes have plunged by four to fivefold. This halt in Indian rice exports has momentarily allowed competitors such as Thailand to enhance their shipment volumes. Key recipients of Indian rice exports include Bangladesh, Nepal, Benin, Senegal, Iran, Saudi Arabia, and Iraq.
Labour Shortage Issues
The 21-day lockdown to contain the coronavirus has led to a severe labor crunch, which inevitably impacts the harvesting of India’s winter crops. The northern states of Punjab, Haryana, and Uttar Pradesh, which largely depend on Eastern Indian farm laborers, face significant operational hurdles. Many laborers fled back to their villages due to fears of the virus and wage disruptions when the lockdown was imposed on March 25.
Farmers fear the impact of the sudden labor shortage on crop harvesting, whether manual or through mechanical harvesters. Due to late harvests, farmers face reduced yields, diminished returns, and a restricted window to plant crops for the next season. The challenge doesn’t end there; transporting the produce to market is also extremely problematic as there are limited trucks available to transport large quantities. Farmers heavily rely on wholesale markets, where vast quantities of grain need to be unloaded, weighed, and packed, requiring large numbers of laborers. The shortage could potentially delay payments for the farmers’ produce.
