Van Dhan had systemic flaws
• The program depended on a single agency, trifed, for marketing support
• It was falsely assumed Trifed would regularly dispose whatever it had procured..
• The program aimed to uproot an existing market system (however bad) without putting in place a sustainable alternative. The program might have done better had it aimed to reform the local traders rather than despise them
• The program involved five focal agencies, around 1,000 SHGs, 10,000 members and over 3 lac farmers / NTFP gatherers. The flow of money was largely through banking channels, but there was no uniform accounting procedure
• The system of price-fixation was erratic in practice, led to unrealistic prices at times
• Trifed ignored the importance of the economic viability of the SHGs. It arbitrarily cut the rate of commission payable to them
• Van Dhan neglected the role of NGOs. It depended too heavily on the administration.