Jharkhand is endowed with rich forest wealth. Out of a total geographical area of the country, Jharkhand accounts for 3.4% of the total forest cover of the country and ranks 10th among all states. There are many important Non wood forest Products (NWFP) found in the forests eg. Tendu leaves or Bid leaves , Sal Seed, Harra , Mahua flower, Imli ( Tamarind), Van Tulsi etc.
The Millennium Ecosystem Assessment estimates that up to 96% of the value of forests is derived from Non-Timber Forest Products (NTFPs) or Minor Forest Products (MFP) and services (MEA 2005). More than 5,000 commercial forest products are non-timber products, including pharmaceuticals and food.

In order to give benefits to forest dwellers in collection and trade of forest produce, the Jharkhand Government decided to Co-operative the Management of MFPs Purchasing and Marketing, and in 2007 the government established JHAMFCOFED (The Jharkhand State Minor Forest Produce Co-operative Development and Marketing Federation Limited). To protect them from exploitative middlemen, petty traders and establish a mutually beneficial relationship between them and rest of the world.

The Jharkhand State Minor Forest Produce Co-operative Development and Marketing Federation Limited "JHAMFCOFED" is a Two Tier Co-operative structure . JHAMFCOFED at the apex level and 88 Primary Cooperative Societies at the lower level.
The objects of the federation is in general to promote Minor Forest Produce (MFP) industries on Co-operative basis and in particular:-

• To purchase of Minor Forest Produce directly from the MFP collectors or through:-

  • Primary Agriculture Credit Society. (PACS)

  • Vyapaar Mandal Sahyog Samity (VMSS)

  • Primary Minor Forest Produce Co-Operative Societies (PMFPCS)

  • Women SHG or Repudiated NGO

• To provide finance to LAMPS/PACS/VMSS/PMFPCS) for procurement of Minot Forest Produce From Primary growers and Collectors.

• To arrange for marketing of minor forest produce and to its products through concerned government agencies or otherwise.

• To help in the activities of promotion of production of the MFP.

• To enter into all kinds of contracts and transaction relating to purchases and sale of MFP and it products with a view to the gradual elimination of middle men and to ensure fair price to the MFP growers of collectors.

• To acquire and hold shares in any Co-operative Society in the interest of the Federation.

• To take necessary steps to safeguard the interest of the affiliated societies.

• To encourage thrift, self help and co-operation amongst the member of its affiliated societies and to promote the development of Co-operative idea and enterprises among its members.

• To arrange for the training of the members of the affiliated societies.

• Generally to undertake such other business and do such other things as are incidental and conductive to the promotion and attainment of the above objectives.

• To impart awareness among the cooperative societies members about their rights; duties; importance of forests; and about different welfare schemes and activities which are carried out by the Government for their benefit.