Building BusinessServices

Section 21

Khunti and Ranchi lac belt

Khunti, Jharkhand · Farm produce

Lac cultivation and processing

sourced figures
2
main products
4
businesses to start
4

The story

Tribal farmers in Khunti and Ranchi raise the lac insect on palash, kusum and ber trees as a cash crop. Ranchi hosts the ICAR-Indian Institute of Natural Resins and Gums, which trains growers and develops new uses for lac. Most processed lac is exported.

In numbers

  1. The Khunti district profile names lac as the major exportable item, with shellac processed products being 100% export-oriented.

    Brief Industrial Profile of Khunti District, MSME-DI Ranchi, Ministry of MSME · 2012

  2. The forest-based industry in Jharkhand, in which lac is a key product, sustains nearly 20 lakh poor and tribal workers.

    GST Reforms Unlock Economic Potential in Jharkhand (PIB factsheet, 11 October 2025) · 2025

Ways in for a newcomer

  • Village-level lac processing and seedlac units
  • Brood-lac supply and grower training
  • Lac bangle and handicraft units for women's groups

Problems the cluster faces

  • Yield losses from weather and pests
  • Low prices paid to collectors
  • Synthetic resin substitutes

Businesses to start here

Lac Production →Lac Bangle Making →Shellac Varnish (French Polish) Making →Gasket Shellac Compound (Gasket Cement) →

Sources (2)
  1. Brief Industrial Profile of Khunti District, MSME-DI Ranchi, Ministry of MSME
  2. GST Reforms Unlock Economic Potential in Jharkhand (PIB factsheet, 11 October 2025)