Mechanism for marketing of Minor forest produce (MFP) Scheme

Context: Recently, the Union government’s ‘mechanism for marketing of minor forest produce (MFP) through minimum support price (MSP) and development of value chain for MFP’ scheme can offer respite to forest-dependent labourers in the wake of novel coronavirus (COVID-19) outbreak, according to experts.
About Minor forest produce scheme

• The scheme, launched by the Centre in August 2013, provides fair price for MFP collected by tribals through MSP.
• At the time of the launch in 2013, the estimated outlay was Rs 967.28 crore from the central government; states had to pitch Rs 249.50 crore towards capital and revenue expenditure.
• Under the scheme "Mechanism for Marketing of Minor Forest Produce through Minimum Support Price and development of Value chain for MFP" Minimum Support Price (MSP) for Minor Forest Produce (MFP) has been fixed for select MFP. 
• The scheme is designed as a social safety net for improvement of livelihood of MFP gatherers by providing them fair price for the MFPs they collect.

The scheme has been started with following objectives

• To provide fair price to the MFP gatherers for the produce collected by them and enhance their income level
• To ensure sustainable harvesting of MFPs.
• The Scheme will have a huge social dividend for MFP gatherers, majority of whom are tribals

Coverage of the Scheme

• The Scheme has been implemented in eight States having Schedule areas as listed in the Fifth Schedule of the constitution of India. From November 2016, the scheme is applicable in all States.
• MFP comprises all non-timber forest produce of plant origin such as bamboo, brush wood, stumps, cane, tussar, cocoons, honey, wax, lac, tendu or kendu leaves, medicinal plants and herbs, roots, tubers, etc, according to the Forest Rights Act, 2006.

Available Data

• Almost 60-70 per cent income of forest dwellers depends on collection and sale of MFP, according to the tribal affairs ministry.
• Recent estimates by Tribal Cooperative Marketing Development Federation indicated that the trade value was approximately Rs 20,000 crore for 55 economically important MFPs.
• The scheme has been scaled up since its inception — between 2016-17 and 2018-19, Rs 60 crore was released for its implementation.
• However, experts said the money was lying with the states unutilised.
• For eg: In Odisha, total fund available with the state government was over Rs 90 crore till February 2018-end.
• This included interest earned from the bank but the expenditure has been only Rs 3.71 crore, i.e., six per cent of the amount.

Implementing Agencies

• Ministry of Tribal Affairs, Govt of India. of India shall be the Nodal Ministry for implementation and monitoring of the scheme. Ministry of Tribal Affairs shall announce Minimum Support Price (MSP) for the selected MFPs with the technical support from TRIFED.
• TRIFED shall be Central Nodal Agency for implementation of the scheme through State level implementing agencies.