Context

Government procurement of Minor Forest Produce (MFP) at Minimum Support Price (MSP) witnessed a sharp decline in 2024–25. Data tabled in Parliament shows a drop of over 92% across 19 states compared to 2023–24.

About MFP and MSP

Minor Forest Produce (MFP):
Non-timber forest products of plant or animal origin, including bamboo, honey, lac, medicinal herbs, tendu leaves, gum karaya, and karanj seeds. MFPs are vital for over 100 million forest-dependent people, providing food, medicine, and 20–40% of annual income for many tribal communities.

Minimum Support Price (MSP) for MFP:
Decided by the Pricing Cell under the Ministry of Tribal Affairs, MSP ensures fair remuneration for tribal gatherers and protects them from market fluctuations. Revisions are typically carried out every three years, though they may occur earlier under special circumstances.

Purpose of MSP for MFP

• Safeguard tribal communities from exploitation by middlemen
• Enhance income and livelihood opportunities for forest-dependent populations
• Encourage sustainable harvesting of forest resources

Key Legal Framework

• Forest Rights Act (FRA), 2006: Recognizes the rights of forest dwellers over non-timber forest products
• Panchayats (Extension to Scheduled Areas) Act (PESA), 1996: Empowers tribal communities in forest management and MFP marketing

Economic and Social Significance

• Provides subsistence and cash income, particularly during non-agricultural seasons
• Empowers tribal women, who are often central to the collection and processing of MFPs
• Has the potential to generate 10 million workdays annually, contributing to rural socio-economic development

Key Schemes and Initiatives for MFP

1.      Mechanism for Marketing of MFP through MSP

o    Launched in 2013–14, it provides a safety net by offering guaranteed prices for MFPs such as tamarind, honey and mahua

o    Covers 23–55 MFPs across 27 states

2.      Van Dhan Vikas Kendras (VDVKs)

o    Implemented under the Pradhan Mantri Janjatiya Vikas Mission (PMJVM), these centres organize tribal gatherers into Self-Help Groups (SHGs) for primary processing and value addition

o    Focus on transforming tribal gatherers into entrepreneurs through sustainable forest management

3.      NSTFDC Financial Assistance

o    The National Scheduled Tribes Finance and Development Corporation (NSTFDC) provides concessional loans for income-generating activities related to MFP

4.      PM-JANMAN Initiative

o    Supports Particularly Vulnerable Tribal Groups (PVTGs) through specialized Van Dhan Vikas Kendras

Key Components of MFP Development

• Value Addition: Transition from raw collection to processed products such as jams, powders, and oils
• Infrastructure Support: Establishment of storage facilities, warehouses, and processing units
• Capacity Building: Training tribal members in sustainable collection, processing, and marketing practices

Challenges Highlighted by the Dip in Procurement

• Inadequate implementation at the state level
• Delays in fund release and logistical bottlenecks in procurement
• Limited awareness among tribal gatherers regarding MSP and government schemes

Conclusion

The 92% dip in MFP procurement in 2024–25 highlights serious implementation gaps in the MSP mechanism and allied schemes. Strengthening state-level execution, ensuring timely procurement, enhancing value addition, and empowering tribal communities are essential for securing sustainable livelihoods, promoting forest conservation, and advancing rural economic development in India.