Record minimum support price distributed to tribals during coronavirus outbreak

NEW DELHI: For the first time since the introduction of minimum support price (MSP) for minor forest produce (MFP), about 10 lakh tribal households have received MSP worth Rs 4,000 crore across 21 states.

The Centre’s MSP for MFP initiative, which was introduced by Congress-led UPA in 2013-14 and had remained a non-starter, has got a sudden fillip in the current fiscal during successive lockdowns. The state governments used the scheme as a way to put more money in the hands of the tribals through direct benefit transfers. As per government estimates, minor forest produce worth Rs 948 crore were acquired by state agencies and Rs 3,000 crore by private buyers. Overall, MSP worth Rs 4,000 crore was given in the first collection season by November. How the scheme has seen a quantum jump during the pandemic can be gauged by the fact that in five years till March 2020, MSP worth Rs 77-78 crore has reached tribal households. However, there is no record of how many tribal households benefitted under the scheme in this time period.

The scheme involves fixing MSP for 48 MFP items collected by tribals in remote areas. These tribals then sell MFPs in village haats. If the market prices fall below MSP, the state government agencies move in to procure the minor forest produce. Tribal Cooperative Marketing Development Federation of India (TRIFED) managing director Pravir Krishna told ET, “Covid-19 provided an opportunity. About 21 states aggressively used the scheme to disburse MSP as it was money directly in the hands of the poor. This livelihood programme did not dry up. For the first time we even had an estimate of number of tribal households benefitting from the scheme.”


Chhattisgarh, Madhya Pradesh, Maharashtra, Odisha and Gujarat took the lead in acquiring minor forest produce at MSP. This was the first time that Gujarat disbursed MSP for MFP. “Chhattisgarh took an innovative step as the government went door-to-door to buy MFPs from the tribals,” said Krishna. Other states that acquired MFPs at MSP included Andhra Pradesh, Telangana, Jharkhand, Assam, Nagaland, Karnataka and West Bengal.

The government has now set a target of involving all the remaining states in the next collection season, which begins in January.