Mahua from the state will be an ingredient in health drinks, chocolates, and cookies.
With this end in view, the state will export 200 tonnes of Mahua to an Indian subsidiary of a London-based company.
Madhya Pradesh Minor Forest Produce Federation Managing Director Pushkar Singh said apart from the agreement with Madhuvanya, the subsidiary of O’Forest, there could be other deals with domestic and foreign companies at the International Forest Fair, to be held next year, to purchase 1,000 tonnes of Mahua.
Mahua is the second-highest source of revenue for the forest produce outfit, the highest being Tendupatta.
Singh said: “Mahua is being procured from forest committees at Rs 35 per kg and the contract is to export it at Rs 110 per kg.”
The supply will take place this year. Contracts are being signed with district forest committees in Umaria, Alirajpur, Narmadapuram, Sehore, Sidhi, and Khandwa.
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In August last year the state government had given the green signal for producing Mahua. According to excise department officials, Mahua is not country liquor and will be branded “premium heritage liquor”.
‘‘Mahua will not be sold at liquor shops but at the bars of MP Tourism Corporation only,’’ said an official.