Date:21/12/2005 URL: http://www.thehindubusinessline.com/2005/12/21/stories/2005122101950800.htm

Back Shellac council told to sustain value-added route for exports

Our Bureau

Kolkata , Dec. 20

THE Shellac and Forest Products Export Promotion Council (SHEFEXCIL), formerly Shellac Export Promotion Council (SEPC), which recorded exports of Rs 166 crore during 2004-05, has been urged to sustain the flow of export of value-added shellac and lac products.

And for continued sustenance of the tradition of shellac cultivation in some of the tribal-dominated producing States such as Jharkhand and Madhya Pradesh, the council has been asked to ensure that the tribal workforce is suitably compensated.

Addressing members of SHEFEXCIL at the council's export annual export awards (for 2004-05) presentation ceremony here recently, Mr E.V.K.S. Elangovan, Union Minister of State for Commerce and Industry, said proper utilisation of minor forest produce (which now figure under SHEFEXCIL) was of immense relevance to the nation as large number of tribal communities derive their livelihood from these items.

Talking to Business Line at the sidelines of the awards ceremony, the Minister said: "Scientific management and utilisation of minor produce will ensure enhanced income for the rural families, especially for the tribal families while preserving ecology." He expressed the hope that the trade, while promoting export of shellac products and lac-based items, would take care of this aspect.

In a bid to develop strategies for aggressive and sustainable growth of MFP products, the council recently set up a `Minor Forest Produce Information Centre' (MFPIC) — a one-stop cell for all information related to MFP.

Tribals in Jharkhand, Madhya Pradesh, Chhattisgarh, West Bengal and Orissa are engaged in shellac cultivation. Pointing out that stick lac availability was crucial for this sector, Mr Elangovan said any shortage of this material was a serious impediment to the growth of finished products. India exports around Rs 1,500 crore of MFPs annually and the major destinations are Germany, France, Japan, the UK, the US, Hong Kong and the UAE.

According to Mr P.K. Saraogi, Chairman of the Council, the plan was to build a community of stakeholders by bringing producers, traders, cooperatives and exporters under SHEFEXIL's umbrella and providing them with a platform to highlight problems faced vis-à-vis support measures needed for export development.