Madhya Pradesh is gifted with rich forest wealth. Out of a total geographical area of 3,08,252 sq.km. of the State, 31% of the area is classified as forest area. Forest of M.P. has large quantity of numerous NTFPs (Non Timber Forest Products i.e forest products other than wood for example Aonla, Mahua, Harra, Baheda) of high commercial value. In order to give benefits to tribals and villagers living in and around forest areas involved in collection and trade of forest produce, the Madhya Pradesh State Minor Forest Produce (Trading & Development) Co-operative Federation was formed in 1984. MFP Federation, a Madhya Pradesh Government Cooperative Undertaking controls and regulates the trade of NTFP in the state.
M.P. accounts for 25% of the total production of Tendu or bidi leaves in India. Collection of Tendu leaves by tribals & villagers in the 1066 Primary Co-operative Societies. There are over 15,000 collection centers in the state. A group insurance scheme for the Tendu leaves pluckers (collectors) was launched in 1991. It is the biggest insurance scheme of its kind in Asia. Pluckers between 18 and 60 years of age (about 3.3 million) are insured free of cost under this scheme. MFP Federation is a non-profit organization where its 60 % of the profit goes to the Primary Collector, 20% for the development of NTFP and regeneration of Forests & 20% for Infrastructure Development/ Cash Payment. Profit for the year 2012-13 was Rs. 388.19 crores.
To give benefits from other NTFPs, MFP Federation in 2005 established Minor Forest Produce Processing & Research Centre (MFP-PARC) in Bhopal. MFP-PARC procures raw materials from the forest areas and processes it to market the 100% pure forest products under the brand name of Vindhya Herbals. MFP-PARC has provided livelihood by training the collectors on sustainable harvesting practices. MFP-PARC is one of the eight companies in India recognized by AYUSH Department (Department of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy) for supply of Ayurvedic Medicines and Herbal Products. MFP-PARC supplies medicines to Department of AYUSH in the state of M.P., Karnataka, Punjab, Haryana, Rajasthan, A.P., Orissa, Pondicherry, Manipur & J&K. It has EMS 14001: 2004, ISO 9001:2008, GMP Certifications and will get 100% organic certification for 12 products soon. It markets its 339 products including 42 patent medicines through 24 company owned Sanjeevani Retail outlets across M.P. It has a state of art laboratory for quality testing.