Lac, a natural resin secreted by Kerria lacca, is an ecologically sustainable non-timber forest product with substantial yet under-utilised economic and employment potential for India's tribal communities. This study empirically examines the determinants of income and employment generation from lac cultivation among tribal households in Jharkhand, with special emphasis on the roles of cultivation technique adopted, institutional support and market access.
Primary data were collected from tribal households involved in lac cultivation in Jharkhand and analysed using the ordinary least squares method and the Instrument Variable Two-Stage Least Squares (2SLS) approach.
The findings reveal that the scientific method of lac cultivation leads to an increase in income generated from lac cultivation. Effective utilisation of host trees and access to higher-tier markets further amplify income gains. Regarding employment, Kusum and Ber trees had a substantial positive relationship with labour utilisation, with higher host tree diversity further enhancing employment generation.
The analysis is based on micro-level data from two districts in Jharkhand, which may limit the generalisability of the findings to other lac-growing regions. Thus, future studies involving panel data or multi-state samples could provide deeper insights.
The study provides novel econometric evidence on the mechanisms through which lac cultivation enhances rural income and employment, using recent primary household-level data from Jharkhand and offers evidence-based insights for strengthening lac-based livelihoods among tribal communities.
