Credit in NTFP

Most of the collectors are involved in income - generating activities involving non -timber forest products on a seasonal basis a supplement to other income. Thus when a trader offers cash advances or willing to bear the risk associated with marketing, there are few reasons to refuse. the monetary assistance comes without the necessary collateral that credit institutions require, it is informal, easily accessible, and the traders' willingness to bear marketing risks save the collector time and capital. Overstepping the trader or middleman cannot occur without substituting their services. then, the decision to replace the trader or middleman should be based on the capacity of and benefit to the collectors. If these are sufficient economic gains for independent marketing then the necessary considerations are justified. Similarly, if the collectors can increase their gains by attaining additional information while allowing the middleman or local trader to still handle the marketing a means of providing the necessary information should be devised.

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