Minimum Support Price Scheme for Minor Forest Produce

The Ministry of Tribal Affairs has recently announced a revised Minimum Support Price (MSP) scheme for Minor Forest Produce (MFP). This centrally-sponsored initiative, known as the "Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and development of value chain for MFP," aims to ensure social safety for MFP gatherers, primarily tribal communities.

What is Minor Forest Produce?

The definition of forest produce is detailed in Section 2(4) of the Indian Forest Act, 1927. Forest produce includes a wide range of items sourced from forests, such as:

Timber, charcoal, caoutchouc, catechu, wood-oil, resin, natural varnish, bark, lac, mahua flowers, mahua seeds, kuth, and myrobalans.
Trees and their parts like leaves, flowers, fruits, and other flora.
Plants not classified as timber, including grass, creepers, reeds, and moss.
Animal-derived products such as skins, tusks, bones, silk, cocoons, honey, and wax.
Natural products such as peat, surface oil, rock, minerals, and products from mines or quarries.

Revised Framework of MSP for MFP

The MSP for MFP scheme, initially launched in 2013, faced some implementation challenges that have now been addressed. Revised MSPs, with an increase of 30-40% on average, are intended for effective procurement, primarily in haat bazaars. These are local markets where the tribal community brings their produce, facilitated by state government agencies and district collectors. The scheme emphasizes a decentralized implementation framework for greater efficacy.

TRIFED, responsible for executing the scheme, has directed states to submit unique procurement plans within 45 days, ensuring efficient marketing from village to state levels.

Inclusion of New Items

In a significant expansion, the Central Government has added nine new items to the MSP for MFP scheme, increasing the list to 49 items. These newly included items are: Bakul (dried bark), Kutaj (dried bark), Noni/Aal (dried fruits), Sonapatha/Syonak pods, Chanothi seeds, Kalihari (dried tubers), Makoi (dried fruits), Apang plant, and Sugandhmantri roots/tubers.

The December 2023 Revision

Prior to this directive, the Ministry had revised the MSP on 23 MFP items and introduced an MSP for 17 new items. This highlights the government's commitment to supporting MFP gatherers since the scheme's inception in 2013-14. For more insights, visit our section on government reforms and initiatives.

MSP Rate List for MFPs

Here's a comprehensive table detailing the revised MSP rates for various MFPs:

S. No	Name of MFP	MSP (INR per Kg)
1	Tamarind (with seeds)	31.00
2	Wild Honey	195.00
3	Gum Karaya	98.00
4	Karanj seeds	19.00
5	Sal Seed, also known as Shorea Robusta	20.00
6	Mahua Seed	25.00

For those exploring business opportunities in regions like Uttar Pradesh, consider accessing resources for startup initiatives to complement your involvement in MFP-related activities.

Understanding the fundamental rights of Indian citizens can be crucial for MFP gatherers, as it pertains to protecting rights and ensuring equity in resource distribution.

Given the importance of minor forest produce in various industries, delving into linkage knowledge systems like sericulture can expand the understanding of similar primary resource domains.

Moreover, recognizing the broader spectrum of corporate laws can provide growers with insights into compliance and business growth strategies.

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Frequently Asked Questions

Common questions about Minimum Support Price Scheme for Minor Forest Produce.

The MSP scheme for MFP is a centrally-sponsored initiative officially known as "Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and development of value chain for MFP." It aims to provide social safety to MFP gatherers by ensuring a minimum price for their produce.

Minor Forest Produce includes various products found in or brought from forests, such as timber, charcoal, resin, lac, mahua flowers, mahua seeds, honey, wax, and parts or produce of trees, plants, and animals, as defined by the Indian Forest Act, 1927.

The scheme was initially launched in 2013, but certain gaps in its implementation rendered it dormant. The recent revision, with MSPs increased by 30-40% on average, aims to revitalize the programme and improve its effectiveness.

The procurement of MFP will be initiated in local haat bazaars, where the tribal community can bring their produce. State government agencies and district collectors will facilitate the process.

Under the revised scheme, TRIFED has directed the states to submit their unique procurement plans and marketing strategies for MFP within 45 days. This decentralized approach aims to better cater to local needs and conditions.

The Central Government has recently added nine new items, including Bakul (dried bark), Kutaj (dried bark), Noni/Aal (dried fruits), and Sonapatha/Syonak pods, increasing the total number of items covered to 49.

Prior to the recent directive, the Ministry notified the revision of 23 MFP items and introduced MSP for 17 new MFP items in December.

Some examples of MFP items and their revised MSP rates (in INR per kg) are: Wild Honey (195), Gum Karaya (98), Chironji pods with seeds (109), Guggul (700), and Dried Mahua Flowers (17).

The MSP for MFP scheme is crucial for the social safety of MFP gatherers, who are often from tribal communities. It ensures they receive a fair price for their produce, which is an essential source of livelihood for many.

By involving state agencies and district collectors in the procurement process and directing states to develop marketing strategies, the revised scheme aims to streamline and strengthen the value chain for MFP, from village-level procurement to state-level marketing.