Minor Forest Produce (MFP)

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Minor Forest Produce (MFP)

• MFP includes all non-timber forest produce of plant origin and includes bamboo, canes, fodder, leaves, gums, waxes, dyes, resins and many forms of food including nuts, wild fruits, honey, lac, tusser etc.
• It provides both subsistence and cash income for people who live in or near forests.
• They form a major portion of their food, fruits, medicines and other consumption items and also provide cash income through sales.

• Recently, Union government has revised the Minimum Support Price (MSP) for Minor Forest Produce (MFP).
• The MSP is the rate at which the government buys produce from farmers and tribal.
• The idea of MSP is to counter price volatility of commodities due to the factors like variation in their supply, lack of market integration and information asymmetry.
• The increased Minimum support price (MSP) ranges from 16% to 66%.
• MSP for MFPs is revised once every three years by the Pricing Cell constituted under the Ministry of Tribal Affairs.
• However, the authorities have revised the MSP much earlier than 3 years.
• This will offer much-needed support to tribal gatherers in view of the “exceptional and very difficult” circumstances prevailing in the country due to the Covid-19 pandemic.