The document discusses the fixing of minimum support prices (MSP) for non-timber forest produces (NTFPs) in India. It notes that a committee recommended establishing a central agency to fix MSPs for 11 identified NTFPs collected by tribes, linked to wages, transportation and market costs. It also recommended state-level cooperatives acquire the products and NGOs provide training and awareness to tribes on sustainable harvesting and value addition.

1. NTFP Products In India

2. Tribal Cooperative Marketing Development Federation of India Ltd (TRIFED), under the
Ministry of Tribal Affairs, has sanctioned the national project on commodity profiling
and drawing up of training module for Non-Timber Forest Produces (NTFPs) to the
Tamil Nadu Agricultural University here.
• The project is expected to assume significance as the Government has indicated
that it will fix the minimum support price for the 11 identified NTFPs based on
the report and recommendation of this project. The budget outlay is fixed at Rs
25 lakh.
• The project is also expected to play a significant role as the sub-group on NTFP of
the XII Plan has recommended the formation of a separate board for NTFP and
earmarked Rs 4,000 cr for the promotion of such produce.
• A TNAU spokesperson said that the project comprised two parts.
• The first aims at preparing the commodity profile of the 11 identified NTFPs such
as Tendu/Beedi leaf, Bamboos, Mahua flower and leaf, Sal (Shorea Robusta) leaf
and seed, Lac, Chironji, Wild Honey, Myrobalan and Tamarind for value-addition
and sustainable harvesting practices.
• The second part would involve preparation of training modules for all the 11
identified NTFPs. Based on the report findings, the MSP for the identified NTFP
will be fixed by the Government, the spokesperson said.
• The Principal Investigator and Co-Principal Investigator of the project are M.K.
Shivaa, Professor (Education) and Nodal Officer, TNAU-TRIFED Centre, and K.
Kumaran, Professor (Forestry), respectively.

3. Panel recommends fixing of MSP for forest
produce
• A high-level committee appointed to examine introduction of minimum support price (MSP)
for non-timber forest produce has recommended that a central agency be constituted to fix
MSP for the produce collected by tribals and the price be fixed keeping in mind wages paid
under National Rural Employment Guarantee Act (NREGA), transportation cost, value
addition to the produce and local market prices.
• The committee, which was appointed in August last year under Dr T Haque, has submitted an
interim report and recommended that the Centre should begin with fixing of minimum
support price (MSP) of common forest produces like tamarind , mahua, sal seeds and gum
kariah . The panel has recommended constitution of a central agency to fix MSP.
• A source said, "In the beginning Commission for Agricultural Costs and Prices (CACP) could be
roped in to fix MSP for minor forest produces. But a long-term solution is only in the
formation of a central agency for this purpose." The main recommendation of the panel is on
the procedure to fix the MSP. The report observes that there is widespread exploitation of
tribals because the state corporations acquire forest produce from tribals at very low prices
which are fixed randomly by contractors.

4. • The committee has recommended that the MSP be linked to minimum
daily wage rates specified for NREGA, transportation cost, value addition
cost and prevalent prices in the open market. A committee member told
ET, "Linking MSP with wage rates under NREGA would help in keeping
tribals interested in collection , regeneration and marketing of forest
produce. They would have an option.
• Right now collection of forest produce is not a lucrative option for the
tribals and they are gradually moving towards NREGS temporary works like
building roads." The committee has said that in the long run if the system
takes off, the central agency could consider making good the losses
incurred by state corporations if the market price falls under MSP.
• It also recommended a three-tier mechanism wherein a special agency at
the Centre will be appointed to fix MSP, corporations or cooperatives at
the state level will acquire forest produce and NGOs would be involved in
training and spreading awareness amongst tribals. The committee has not
recommended any particular type of set-up at the states. While some
states have cooperatives , others have corporations to acquire minor
forest produce.

5. • It observed that the existent set-up should continue at the state-level . The
panel has found that acquisition of minor forest produce is centred around
main townships. Tribals living in the interiors of forests are at a
disadvantage. It has recommended that NGOs should be roped in to train
tribals on treating the produce and adding value to the product to fetch
better prices.
• The committee is not in favour of only depending on this government
controlled mechanism. It wants to encourage competition so that
exploitation of tribals is reduced. The committee is planning to
recommend encouraging private companies to step in and provide better
prices to the tribals for their collection.
• This would mean that tribals could organise themselves in cooperatives
and then have a choice of selling the produce either to a private company
or to the government. However, there are sharp differences within the
committee over dealing with bamboo and tendu leaves.

6. • Higher MSP for Minor Forest Produce
• The Ministry of Panchayati Raj has constituted a Committee under the chairmanship of Dr. T.
Haque to look into different aspects of Minor Forest Produce (MFP) management in fifth
schedule areas which has recommended for fixation of Minimum Support Price (MSP) for 14
MFPs in its final report. These are Tamarind, Mahuwa flower, Mahuwa seed, Tendu leaf,
Bamboo, Sal Seed, Myrobalan, Chironji, Lac, Gum karaya, Honey, Seeds of Karanja, Neem and
Puwad. To operationalize the MSP for selected MFPs, the Planning Commission has suggested
for Central Price Fixation Commission for MFP as an autonomous body under the Ministry of
Tribal Affairs. All primary collectors including tribal and people living in and around the
forests involved in the MFP collection will be benefitted.
• To protect the resource base of NTFPs in the forests, the Ministry has taken steps for
regeneration of MFP and training for sustainable harvesting of MFP to primary collectors with
the State Forest Departments.
• This information was given by the Minister of State for Environment and Forests
(independent charge) Shrimati Jayanthi Natarajan in a written reply to a question by Shrimati
Shobhana Bhartia & Shri N.K. Singh in Rajya Sabha today.

7. • Government is likely to announce MSP on more minor
forest produce soon. It is yet not decided but some forest
produces like amla, harra, bahera, mahua and honey are
likely to come under the ambit of MSP,” a government
source informed Business Standard.
• The state government had fixed MSP for shellac hosted on
palash tree (butea monosperma) at Rs 100 per quintal
while that on kusum tree at Rs 120 per quintal. For Chinroji
kernel, the MSP has been fixed at Rs 80 per quintal.
• The state government has outsmarted the Centre which is
still deliberating on the issue. On the other hand, political
rivals of the government have termed it as a gimmick of
cultivating support of tribal-dominated areas.

8. • This decision however seems to benefit tribal families in a
large number. The potential trade of Chironji, according to
government sources, is nearly 490 quintals in the state.
Eastern parts of the state are witnessing shellac cultivation
as supplementary income of small farmers.
• Madhya Pradesh is the third largest producer of shellac in
the country accounting for 2,870 metric tonnes (MT)
production annually. In 2005, it produced approximately
4,000 MT of scrapped shellac, which is about 19 per cent of
India's total shellac production and was thus ranked second
after Jharkhand.
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