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MSP Hiked for Minor Forest Produce

  • 04 May 2020
  • 3 min read

Why in News

Recently, the Central government has revised the Minimum Support Price (MSP) for Minor Forest Produce (MFP).

  • The MSP is the rate at which the government buys produce from farmers and tribals.
  • The idea of MSP is to counter price volatility of commodities due to the factors like variation in their supply, lack of market integration and information asymmetry.

Key Points

  • The increased Minimum support price (MSP) ranges from 16% to 66%.
  • MSP for MFPs is revised once every three years by the Pricing Cell constituted under the Ministry of Tribal Affairs.
    • However, the authorities have revised the MSP much earlier than 3 years.
  • This will offer much-needed support to tribal gatherers in view of the "exceptional and very difficult" circumstances prevailing in the country due to the Covid-19 pandemic.
  • The Centre has also asked all the states to speed up procurement operations.
  • The central government has also created an online monitoring dashboard, called the Van Dhan Monit Dashboard, for reporting the procurement activities undertaken at the state level.
    • The dashboard is a part of the “TRIFED E- Sampark Setu” that aims to facilitate exchange of information to and from every Panchayat and Van Dhan Kendra, either through email or mobile phone.
  • States have appointed the Van Dhan Kendras as their primary procurement agents for MFP procurements from haat bazaars.

Van Dhan Vikas Kendra

  • Van Dhan Vikas Kendras have been set up under the program ‘Van Dhan Yojana’ which was launched in 2018, in Chhattisgarh.
  • The Van Dhan Vikas Kendra caters to ten Self Help Groups of thirty tribal gatherers each.
  • The selection of the tribal beneficiaries and formation of the SHGs has been undertaken by the Tribal Cooperative Marketing Development Federation of India (TRIFED).
  • The Van Dhan Vikas Kendras boost the economic development of tribals involved in the collection of Minor Forest Produce (MFP) and provide a sustainable MFP-based livelihood in MFP-rich districts.

Minor Forest Produce (MFP)

  • MFP includes all non-timber forest produce of plant origin and includes bamboo, canes, fodder, leaves, gums, waxes, dyes, resins and many forms of food including nuts, wild fruits, honey, lac, tusser etc.
  • It provides both subsistence and cash income for people who live in or near forests. They form a major portion of their food, fruits, medicines and other consumption items and also provide cash income through sales.

Source: PIB

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