The Hindu Business Line : 4 Shefexil projects cleared for 100 pc Central aid

Four specific projects of the Shellac and Forest Products Export Promotion Council (Shefexil), each highlighting the potential to create rural jobs in a big way, have been cleared for 100 per cent Central assistance by the Department of Rural Development.

The projects have been posed by the Department of Commerce to the Ministry for clearance of Central assistance.

According to the Union Minister of State for Commerce and Industry, Mr Jairam Ramesh, the objective was to involve the export promotion councils in the Swarnajayanti Gram Swarozgar Yojana (SGSY) of the Department of Rural Development, to create employment for women and weaker sections of society.

Besides Shefexil, the other five EPCs identified by the Commerce Ministry, and which are now in the process of finalising their project reports, are Council for Leather Exports (CLE), Pharmaceuticals Export Promotion Council (Pharmexil), Cashew Export Promotion Council, Export Promotion Council for Handicrafts (EPCH) and Apparel Export Promotion Council.

According to the Ministry, Bihar, Jharkhand, West Bengal, Orissa, Chhattisgarh, Maharashtra and Madhya Pradesh accounted for over 90 per cent of Indian lac.

Talking to Business Line here recently, Mr Pradeep Kr Shaw, Chairman of Shefexil, said the four projects involved cultivation of guar in Haryana, Rajasthan and Gujarat, increased lac cultivation in West Bengal, Orissa, Andhra Pradesh and Chhattisgarh, lac cultivation also in Chhindwara and Patalkot in Madhya Pradesh, and for cultivation of `cheronjee' in Amarwara region of Chhindwara district of Madhya Pradesh.

He said the council's initiatives will impact some 53,000 beneficiaries, involving some 5,300 self-help groups (SHGs) across eight States. Giving a break-up, he said the guar project will involve a cost of Rs 14.50 crore, improved lac cultivation in Bengal, Orissa and the other two States - Rs 15 crore, lac projects in Chhindwara and Patalkot, Rs 3.84 crore, and the `chironjee' project in Amarwara Rs 10.65 lakh.

Commenting on the improved show by the lac exporters during 2005-06, he said the country's overall exports of minor forest produce (MFP) during 2005-06 recorded a growth of 20 per cent over the previous fiscal at $676 million (Rs 3,042 crore). He put the April-October 2006 exports of MFP at Rs 2,350 crore.

Export of lac and products in 2005-06 was Rs 159 crore, and the target for 2006-07 has been fixed at Rs 165 crore. According to him, going by the current trends, the MFP export target of $800 million for the current fiscal would not only be achieved, but perhaps exceeded in good measure.

Besides shellac, the council, now recognised as the nodal agency for promotion of exports of minor forest produce and their value added projects, also handles guar, sesamum seeds, niger seeds, bamboo, rattan & canes, tree-borne oilseeds and other gums & resins.

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