MSP (Minimum Support Price) Scheme for Minor Forest Produce

Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) & Development of Value Chain for MFP

MFP contributes to livelihoods and alleviating poverty of nearly 100 million people. Ensuring fair returns to these poor people is duty of the State. The people who depend on MFP are also beset with a number of other problems such as perishable nature of the produce, lack of holding capacity, lack of marketing infrastructure, exploitation by middlemen, lack of Government intervention at the required time and scale, volatile nature of markets etc. Consequently, the MFP gatherers who are mostly poor are unable to bargain for fair prices. Government  of India has taken a number of initiatives for socio economic development of tribals and recognizing the critical importance which MFP hold for tribals and its potential to create large scale employment opportunities thereby helping in reducing poverty and increasing empowerment of tribals particularly women and poor people in backward districts of the country, Govt. of India has decided to introduce the scheme of “Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and development of value chain”. The scheme is designed as a social safety net for improvement of livelihood of MFP gatherers by providing them fair price for the MFPs they collect.

The scheme has been started with following objectives


  • To provide fair price to the MFP gatherers for the produce collected by them and enhance their income level
  • To ensure sustainable harvesting of MFPs.
  • The Scheme will have a huge social dividend for MFP gatherers, majority of whom are tribals.

It is a holistic scheme for development of MFP trade including its value chain and necessary infrastructure at local level. The MSP scheme seeks to establish a framework to ensure fair returns for the produce collected by tribals, assurance of buying at a particular price, primary processing, storage, transportation etc while ensuring sustainability of the resource base.

The scheme is implemented in all the States & union territories having Scheduled Areas and Scheduled Tribes in the Fifth Schedule of the Constitution of India.

Further details of the scheme is available on and  

Tribal Department Government of Gujarat has been appointed as the Nodal Department and Gujarat State Forest Development Corporation Ltd. as Nodal Agency for the Implementation of the Scheme

Government of India has provided 75% and Government of Gujarat 25 % share for the Revolving fund

Out of 50 MSP commodities 44 are available in the State of Gujarat.

Collection rates (2018-19) for MSP items

Gujarat State Forest Development Corporation Ltd. has started 45 Direct Purchase Centers (DPC) for collection of various commodities (List of DPC centers)

Van Dhan Vikas Kendra

Keeping the tribal forest gatherers as the focus, the Scheme ensures that training on sustainable harvesting with primary level value addition, skill up gradation and processing.

The “Van Dhan Vikas Karyakram” as the name implies will add to the income and livelihoods for tribals by harnessing the wealth of forests.

The programme aims to tap into traditional knowledge & skill sets of tribals to convert the tribal wisdom into a viable economic activity.

It also provisions to bridge the last mile connectivity between the tribals and markets through activation of Haat bazars by strengthening of grassroots infrastructure for MFP procurement, storage, transportation, marketing etc.

Besides specific thrust is being given under the Scheme on training and skill up gradation of the tribal artisans in a systematic manner by introducing value addition and marketing through tribal groups and clusters.

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