Indian Economy
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.
