Forest dwellers (FDs) depend on non-wood forest products (NWFPs), such as tamarind, for their survival, growth and socioeconomic needs. FDs finance their needs during lean season by taking advances from traders of NWFPs against forward mortgaging of the forthcoming harvest of NWFP. This is called NWFPs advance trade, which is exploitative in nature. FDs do not have access to formal financial systems to finance their needs. Pre-determined pricing on account of advance trading of NWFPs is done lower than the market price of such NWFPs and is known as distress sale of NWFPs.
A study has been conducted in Madhya Pradesh on emerging microfinance practices. The frequency of SHGs meeting is once a month, average contribution per member per meeting various from Rs. 10 in some groups up to Rs. 50 in others. Governmental organizations (GOs) and nongovernmental organizations (NGOs) should strengthen SHGs driven microfinance movement to bridge the gap and to increase dissemination of the microfinance movement.
The institutional network, microfinance, marketing, technology, infrastructure development and other managerial interventions have to be augmented by all concerned GOs, banks and NGOs, keeping the local socioeconomic aspects in mind, for effective and sustainable results.