The Central government of India has recently updated the Minimum Support Price (MSP) for Minor Forest Produce (MFP). The MSP is the rate at which the government purchases produce from farmers and tribals. MSP helps to tackle price instability of commodities caused by factors like variation in supply, lack of market integration, and information asymmetry.
Key Points: Increased MSP and its Impact
The new MSP ranges from a growth of 16% to 66%. Generally, the MSP for MFPs is revised every three years by the Pricing Cell under the Ministry of Tribal Affairs. However, the current update comes earlier than the typical three-year period.
This revision is considered particularly beneficial to tribal gatherers during the exceptional and difficult circumstances brought on by the Covid-19 pandemic. The Center has urged all states to speed up procurement operations in light of this change.
Van Dhan Monit Dashboard: A Tool for Monitoring Procurement Activities
To streamline the reporting of procurement activities at the state level, the central government has introduced an online monitoring dashboard, identified as the Van Dhan Monit Dashboard. This dashboard is a segment of the “TRIFED E-Sampark Setu”, designed to facilitate the communication of information to each Panchayat and Van Dhan Kendra via email or mobile phone.
On top of this, states have appointed the Van Dhan Kendras as their primary agents for MFP procurements from haat bazaars.
Overview of Van Dhan Vikas Kendras
Established under the program ‘Van Dhan Yojana’ launched in 2018, in Chhattisgarh, Van Dhan Vikas Kendras cater to ten Self Help Groups (SHGs) of thirty tribal gatherers each. The Tribal Cooperative Marketing Development Federation of India (TRIFED) was responsible for selecting the tribal beneficiaries and forming the SHGs.
These Kendras play a crucial role in supporting the economic growth of tribals engaged in the collection of MFP, promoting a sustainable MFP-based livelihood in MFP-rich districts.
Understanding Minor Forest Produce (MFP)
MFP refers to all non-timber forest produce of plant origin. This includes bamboo, canes, fodder, leaves, gums, waxes, dyes, resins, and many forms of food such as nuts, wild fruits, honey, lac, tusser etc.
For those residing in or near forests, MFP provides both subsistence and cash income. It forms a significant part of their food, fruits, medicines, and other consumption items, and also offers a source of cash income through sales.
By adjusting the MSP for MFP, the government aims to stimulate the economy while providing additional aid for those affected by the Covid-19 pandemic. Through these measures, it intends to alleviate financial stress on farmers and tribals and ensure the continuation of essential MFP procurement and distribution operations.