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Centre Set to Increase MSP for Minor Forest Produce

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Source: ET

Why in News?

For the first time since the COVID-19 pandemic, the Union Government is set to increase the Minimum Support Price (MSP) for 87 Minor Forest Produce (MFP) items collected by forest dwellers. The revision is likely to be implemented from the next financial year.

Background
  • The MSP for Minor Forest Produce scheme was launched in 2013–14 by the UPA government.
  • The scheme aims to protect tribal gatherers from distress sales and exploitation by middlemen.
  • MSP is fixed for identified MFP items collected by tribals in remote areas.
  • If market prices fall below MSP, state agencies procure the produce.

The guidelines mandate revision of MSP every three years, but no revision has taken place in the last six years. The last hike occurred in May 2020 during the pandemic.

Key Developments
  • The Ministry of Tribal Affairs has collected updated market price data from various states.
  • The nodal agency, Tribal Cooperative Marketing Development Federation of India (TRIFED), has worked out the proposed increase.
  • A notification is expected soon.
  • The decision followed discussions in the Parliamentary Standing Committee on Social Justice and Empowerment, where concerns were raised about stagnant MSP pushing tribals toward middlemen.

About Minor Forest Produce (MFP)

Minor Forest Produce includes:

  • Bamboo
  • Tendu leaves
  • Mahua seeds and flowers
  • Lac
  • Tamarind
  • Sal seeds

These are critical sources of livelihood for forest-dwelling tribal communities.

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