NEW DELHI: In what is intended to be an income boost to tribal communities, the government is set to announce a hike in support price ( MSP ) for minor forest produce ( MFP ) on the lines of the “cost of production plus 50%” formula for crops while also nearly doubling the number of eligible MFPs.

The hike is likely to be in the range of 40 to 60% over the current MSP which is largely derived on “cost of collection” to which a 50% increase will be offered. MFPs under the MSP framework are expected to go up from 23 to around 53 with about five crore tribals benefiting from the scheme.

MFP is categorised as all non-timber forest produce of plant origin and includes bamboo, brushwood, stumps and canes. The roll out of the new MSP pricing and outreach for procurement is expected by October and is intended to complement the government’s political outreach to Dalits and OBCs ahead of four assembly polls later this year and the Lok Sabha election next year.

The price committee setup by the ministry of tribal affairs is finalising the revised MSP by taking into account cost of collection of forest produce plus 50%.

The MSP for 50 plus MFPs is being worked out on the basis of ground reports gathered by Tribal Cooperative Marketing Development Federation’s (Trifed) research partner Teri which visited 12,000 villages to study markets and costs. Also around 20 of these MFPs like tamarind have been identified for possible value addition and will be expected to benefit from 3,000 “van dhan (forest wealth) vikas kendras” proposed.

To seal the gaps based on review of the MSP scheme, the ministry of tribal affairs has taken the MoU route to ensure procurement through mechanisms down to the panchayat level. As many as 16 states have so far signed MoUs with the Centre to implement MSP and another four are will be doing so. Trifed managing director Pravir Krishna said, “It is planned to follow a bottom up approach... to step up procurement and ensure the tribal community benefits fully.”

With the countdown to the Lok Sabha polls underway, the move to hike MSP and the proposal to devolve power to procure MFPs to tribal self help groups at the village haat level is aimed at reaching out to the tribal population with the a plan to deliver on the promise of livelihoods.

BJP has often done well on tribal seats where its candidates benefit from non-reserved votes, but with the 2019 election looking like a hard fought contest, the MSP decision will be seen as a vote multiplier.

“Funds will be sent down through the state to the district level. Tribal samitis on the format of self help groups will be formed at the panchayat level and made in-charge of procurement at the fixed MSP and bring it to the haat. SHGs will get a commission...” Krishna said.

