Minimum Support Price Scheme

Minimum Support Price Scheme for MFP

Minimum Support Price Scheme for MFP

The Ministry of Tribal Affairs has recently announced a revised MSP (Minimum Support Price Scheme) for MFP (Minor Forest Produce). This centrally-sponsored initiative is officially known as “Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and development of value chain for MFP,” and is meant for the social safety of MFP gatherers.

What is Minor Forest Produce?

Section 2(4) of the Indian Forest Act, 1927, describes forest produce as products found in or brought from a forest. This includes:

  • Timber, charcoal, caoutchouc, catechu, wood-oil, resin, natural varnish, bark, lac, mahua flowers, mahua seeds, kuth and myrobalans.
  • Trees and leaves, flowers and fruits, and all other parts or produce of trees.
  • Plants, which may include grass, creepers, reeds and moss, and all parts or produce of such plants (but not trees).
  • Wild animals and skins, tusks, horns, bones, silk, cocoons, honey and wax, and all other parts or produce of animals.
  • Peat, surface oil, rock and minerals, and all products of mines or quarries.

Revised Framework

The MSP for MFP scheme was initially launched in the year 2013, but certain gaps in its implementation rendered the programme dormant. For revitalizing the programme, revised MSPs are granted in the range of 30-40% on average; the procurement of which is proposed to be initiated in haat bazaars, where the tribal community would bring their produce with the facilitation provided by state government agencies and district collectors. To add to it, the recently introduced scheme has laid down a decentralized implementation framework.

TRIFED, which is vested with the implementation of the scheme, has directed the states to submit within 45 days their unique procurement plans and the marketing of the produce from the village level to the state level.

Inclusion of Items

The Central Government has recently added nine new items to MSP for the Minor Forest Produce (MFP) scheme, thereby increasing the list of items to 49. The newly drafted items include Bakul (dried bark), Kutaj (dried bark), Noni/Aal (dried fruits), Sonapatha/Syonak pods, Chanothi seeds, Kalihari (dried tubers), Makoi (dried fruits), Apang plant and Sugandhrnantri roots/tubers.

The December Revision

Prior to the directive covered in this article, the Ministry notified the revision of 23 MFP items and introduced MSP for 17 new MFP items. It is noteworthy that the items revised during the stated period include those MFPs which has been a part of the scheme since it was first introduced in the year 2013-14.

MSP Rate List for MFPs

S. No Name of MFPMSP (INR per Kg)
1Tamarind (with seeds)31.00
2Wild Honey195.00
3Gum Karaya98.00
4Karanj seeds19.00
5SAL Seed, also known as Shorea Robusta20.00
6Mahusa Seed25.00
7SAL leaves30.00
8Chironji pods with seeds109.00
10 (A)Rangeeni Lac130.00
10 (B)Kusumi Lac203.00
11Kusum seeds20.00
12Neem seeds23.00
13Puwad seeds14.00
15Hill Broom Grass30.00
16Dry Shikakai Pods43.00
17Beel Pulp (Dried)27.00
19Shatavari Roots (Dried)92.00
22Tamarind (De-seeded)54.00
24Dried Mahua Flowers17.00
25Dried Tejpatta33.00
26Jamun dried seeds36.00
27Deseeded and Dried Amla Pulp45.00
28Marking Nit8.00
29Dried Soap Nut12.00
30Amaltas Bhava Seed11.00
31Arjuna Bark18.00
32Dry Kokum25.00
34Kaunch Seed18.00
36Vaybidding/Vavding (dry seeds)81.00
37Dhavaiphool dried flowers32.00
38Nux Vomica36.00
39Ban Tulsi Leaves (Dried)19.00
41Bakul (dried bark)40.00
42Kutaj (dried bark)27.00
43Noni/Aal (dried fruits)15.00
44Sonapatha/Syonak pods18.00
45Chanothi seeds39.00
46Kalihari (dried tubers)27.00
47Makoi (dried fruits)21.00
48Apang plant24.00
49Sugandhmantri roots/tubers33.00


Other Related Guides

Venture Capital Assistance Scheme Venture Capital Assistance Scheme The Small Farmer’s Agri-Business Consortium (SFAC) has launched the scheme named Venture Capital Assistance (VCA) S...
Venture Capital Funds for Scheduled Caste Venture Capital Funds for Scheduled Caste The Government of India has initiated the Venture Capital Funds with the initial capital of Rs.200 crore to...
Credit Enhancement Guarantee Scheme for the Schedu... Credit Enhancement Guarantee Scheme for the Scheduled Castes Credit Enhancement Guarantee Scheme for the Scheduled Castes was announced on July 18, 2...
National Scheduled Caste and Scheduled Tribe Hub National Scheduled Caste and Scheduled Tribe Hub Entrepreneurship fuels the economic growth of a nation, more so when it’s an endeavour of all commun...
Venture Capital Funds for Backward Classes Venture Capital Funds for Backward Classes The  Government of India under the Ministry of Social Justice and Empowerment has initiated the Venture Ca...

Post by Sreeram Viswanath

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.