Mechanism for marketing of minor forest produce MFP through minimum support price MSP and development of value chain for MFP

Abstract

About seventy percent of India's population lives in rural areas, but for tribal folks, this is as high as Ninety percent. It is well established that most tribal folks live in forested regions, and their economy is heavily based on gathering produce from nearby forests. In all, about 100 million people living in and around forests derive at least part of their livelihood from collection and marketing of non-timber forest products that include bamboo, canes, fodder, leaves, gums, waxes, dyes, resins and many forms of food including nuts, wild fruits, Honey, Lac, Tusser, etc. The MFP is a source of both subsistence and cash income for tribal folks and rural dwellers that belong to the poorest of the poor section of society. They form a major portion of their food, fruits, medicines, and other consumption needs and provide cash income through a sale in the local market In the lean season the MFP is a means of critical subsistence particularly for primitive tribal groups such as hunter-gatherers, and the landless. Tribal derive 20-40% of their annual income from MFP on which they spend a major portion of their time. This activity has strong linkage to women's financial empowerment as most of the MFPs are collected and used/sold by women. Therefore, MFP has significant economic and social value for the rural and forest dwellers. Approximately 100 million forest dwellers depend on MFP for food, shelter, medicines, cash income, etc. The contribution of MFP to household income varies from 10 to 70 percent. About 25 to 50 percent of forest dwellers depend on MFPs for food requirements. The price of MFP most often determined by traders rather than by demand/supply mechanism. Major areas of the MFP states are affected by left-wing extremism. The Planning Commission and Expenditure Finance Committee jointly suggested the scheme namely Marketing of MFP through MSP and Development of Value Chain for MFP. The scheme acts as a measure of social safety for MFP gatherers who are primarily members of ST.