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.

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.

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 governmentcontrolled 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.