Van Dhan Yojana

What is Van Dhan Yojana?

Pradhan Mantri Van Dhan Yojana (PMVDY), launched on 14 April 2018 under TRIFED (Tribal Cooperative Marketing Development Federation of India), is a flagship tribal livelihood programme that promotes value-addition and entrepreneurship in Minor Forest Produce (MFP). The scheme establishes Van Dhan Vikas Kendras (VDVKs) — each cluster comprising 15 tribal Self-Help Groups (SHGs) of 20 tribal NTFP gatherers/artisans each (300 beneficiaries per VDVK Cluster). TRIFED funds 100% of each VDVK at ₹15 lakh per cluster, with tribal gatherers contributing ₹1,000 per member for ownership. VDVKs procure forest produce (tendu leaves, mahua, gum, honey, bamboo, lac, herbs, tamarind, etc.) at MSP, add value through processing (sorting, grading, packaging, branding), and sell to local/national/global buyers. PMVDY has established 50,000+ VDVKs targeting 10 lakh tribal entrepreneurs and supports tribal MFP gatherers — whose 40-60% of annual income depends on forest produce. Operational across 22+ States/UTs.

Under this scheme, eligible beneficiaries receive ₹15 lakh per VDVK + value chain support + MSP for 50+ MFPs = 3-4x tribal income increase. The scheme was launched in 2018 and is implemented by the Government of India.

Who is Eligible for Van Dhan Yojana?

• ✓Tribal individuals (ST community) engaged in collection of Minor Forest Produce (MFP)
• ✓Must form a Self-Help Group (SHG) of 20 tribal members — 15 SHGs form one VDVK (300 beneficiaries)
• ✓Each SHG member contributes ₹1,000 as ownership contribution
• ✓Located in tribal-dominated forest districts of India (Schedule V or VI areas preferred)
• ✓Members should have prior experience in MFP collection or related tribal craft/agriculture
• ✓VDVK must be set up with State Implementing Agency (SIA) support — typically state forest/tribal department

Documents Required for Van Dhan Yojana

How to Apply for Van Dhan Yojana Online?

1. 1Form a Self-Help Group (SHG) of 20 tribal members engaged in MFP collection in your village/cluster
2. 2Identify 14 other similar SHGs in your block/cluster — total 15 SHGs (300 members) form one Van Dhan Vikas Kendra (VDVK)
3. 3Contact your State Implementing Agency (SIA) — typically State Forest Development Corporation / Tribal Welfare Department
4. 4Submit VDVK Cluster proposal with: SHG details, MFP types collected, expected annual procurement, value addition plan (processing, packaging), and marketing channels
5. 5Each member contributes ₹1,000 as ownership contribution — pooled into VDVK bank account
6. 6SIA appraises the proposal and forwards to TRIFED for sanction — typically approved within 60-90 days
7. 7TRIFED releases ₹15 lakh per VDVK Cluster in tranches: building/shed (₹3L), processing equipment (₹6L), working capital (₹4L), training (₹1L), branding/marketing (₹1L)
8. 8VDVK members receive training in MFP processing, quality grading, packaging, business management, and e-marketing via TRIBES INDIA platform
9. 9VDVK starts procuring MFP at MSP from member tribal gatherers — value adds via processing — sells branded products to local, national, and global buyers (online via TRIBES INDIA, offline at exhibitions, B2B contracts)

Frequently Asked Questions — Van Dhan Yojana