MSP for MFP

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MSP for MFP
  • Minimum Support Price Scheme (MSP) for Minor Forest Produce (MFP) is a centrally-sponsored scheme aimed to ensure fair and remunerative price to MFP gatherers.
  • The scheme is officially known as ‘Mechanism for marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and development of value chain for MFP’ was planned as a social safety initiative for MFP gatherers.
  • The MSP for MFP scheme was first launched in 2013 but the severe gaps in its implementation led to the programme remaining dormant.
  • To revitalize the programme the revised guidelines have been issued. The revised guidelines:
    • Provide for a revised MSP in the range of 30-40% on average.
    • The procurement of these MFPs will commence in haat bazars, where tribals bring their produce with the facilitation provided by state government agencies and district collectors.
    • Lay down a decentralised implementation framework.
  • The implementing agency TRIFED has asked the states to submit within 45 days their roadmap for procurement and marketing of produce from the village level to the state level
Van Dhan Scheme:
  • For the value addition of MFPs, better marketing opportunities under the Van Dhan Scheme was launched last year.
  • The Tribal Affairs Ministry is now planning to scale up this scheme to all tribal districts.
  • The Ministry has asked the state government to prepare and share plan to set up the Van Dhan centres meant to value add to forest produce to boost the market for products made from MFPs.