Revised MSP for MFP Price list for 2020-2021

1 Introduction:

Approximately 100 million forest dwellers depend on MFP for food, shelter, medicines, cash income, etc. Contribution of MFP to household income varies between 10 to 70 percent.About 25 to 50 percent forest dwellers depend on MFPs for food requirement. 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. The Scheme was approved on 01-08-2013 for deliberate implementation by the Cabinet during the 12th plan period. The scheme formed a system to ensure fair monetary returns of the gatherers for their endeavour in collection, primary processing, storage, packaging, transportation, etc. The scheme attempt to provide gatherers a share of the revenue from the sales proceeds with cost deducted. The scheme also aims to address other issues on process of sustainability.

2 MINIMUM SUPPORT PRICE (MSP)

Minimum Support Price (MSP) is an important part of India’s agricultural price policy. It is the price at which government purchases crops from the farmers, whatever may be the price for the crops, which further incentivize the framers and thus ensures adequate food grains production in the country. In other words MSP supports in providing sufficient remuneration to the farmers, provides food grains supply to buffer stocks and supports the food security programme through PDS and other programmes.

Government’s agricultural policy has three important components- the MSP, Buffer Stocks and issue of food grains through the PDS. The interconnectivity between the three is very clear. MSP helps to procure adequate food grains through FCI, state agencies and cooperatives. The PDS network through the policy of issue price delivers it to the weaker sections. MSP is price fixed by Government of India to protect the farmers against excessive fall in price during bumper production years. The MSP are a guarantee price for their produce from the Government.

3 EVOLUTION AND CALCULATION OF MSP

The MSP was first declared and used in 1965 as a tool for agricultural price policy to meet various objectives. Since then, the MSP performs an important function in realizing the various objectives related to agricultural price policy. The Cabinet Committee on Economic Affairs (CCEA), Government of India, determines the Minimum Support Prices (MSP) at the beginning of the sowing season of various agricultural commodities based on the recommendations of the Commission for Agricultural Cost and Prices (CACP). For the calculation of the MSP, the CACP takes into account a comprehensive view of the entire structure of the economy of a particular commodity or group of commodities and various other factors such as cost of production, changes in input prices, input-output price parity, trends in market prices, demand and supply, inter-crop price parity, effect on industrial cost structure, effect on cost of living, effect on general price level, international price situation, parity between prices paid and prices received by the farmers and effect on issue prices and implications for subsidy. Commission makes use of both macro and micro level data and aggregates at the level of district, state and the country. 

At present, the MSP covers 24 crops that includes seven cereals (paddy, wheat, barley, jowar, bajra, maize and ragi); five pulses (gram, arhar/tur, moong, urad and lentil); eight oil seeds (groundnut, rapeseed/mustard, toria, soya bean, sunflower seed, sesame, safflower seed and niger seed); copra, raw cotton, raw jute and virginia flu cured (VFC) tobacco.

4 IMPLEMENTATION OF MSP FOR MFP SCHEME

Minimum Support Price for Minor Forest Produce scheme (MSP for MFP Scheme), started by Ministry of Tribal Affairs, Govt of India in the year 2013-14, was the first step in the direction of providing a fair price to tribals. Initially, the scheme included 10 MFPs in 9 States. It was later expanded to 24 MFPs and all States. The Scheme is implemented through State Level Agency (SLA) appointed by the State Government. Ministry of Tribal Affairs provides a revolving fund to the SLA. Loss, if any, is shared by Centre and State in the ratio of 75:25. Presently, the scheme has coverage of 23 MFPs and applicability to all States. 

Ministry of Tribal Affairs is also developing guidelines in consultation with Ministry of Environment, Forest and Climate Change which aim to facilitate Gram Sabhas in managing their community forest resources in sustainable, equitable, democratic and transparent manner as per provisions of FRA. These guidelines intend to establish an enabling institutional set up consisting of stakeholders representation in the “Community Forest Resources Committees (CFRC)” constituted by the Gram Sabha, and also enunciate functions of these Committees to protect their wildlife, forests and biodiversity with due accountability, as per FRA. 

The objective of the MSP is thus to ensure remunerative prices to the growers for by encouraging higher investment and production. It also aims to bring a balanced realization of sufficient food production and consumption needs at the same ensuring adequate and affordable food grains to all the people. Thus the minimum support price is aimed to:

(i) Assure remunerative and relatively stable price environment for the farmers by inducing them to increase production and thereby augment the availability of food grains

(ii)Improve economic access of food to people.

(iii)Evolve a production pattern which is in line with overall needs of the economy.

5 Terms of Reference and Scope of the Study 

1.      Whether scheme structure, design features, and guidelines are appropriate to meet the objectives of the scheme.

2.      Whether specific deliverables of the scheme/Programme are appropriate for fulfilling the development needs of the communities, as on date

3.      Whether measurable outcomes have been defined for the scheme

4.      To what extent the scheme has percolated at grass root level for the benefit of tribal households, especially female households

5.      Whether the scheme is gender neutral or has gender specific components and in case of inherent gender imbalance, changes required

6.      To identify bottlenecks in the implementation of the scheme and changes required in the scheme for improving delivery mechanism

7.      Is there any overlap with other scheme?

6 Scope of the Study

Minimum Support Price Scheme (MSP) for Minor Forest Produce (MFP) is a centrally sponsored scheme launched at the end of 2013-14 (during the 12th five year plan) to assure fair and remunerative price to MFP gatherers. Known as ‘Mechanism for marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and development of value chain for MFP’, the scheme was planned as a social safety initiative for MFP gatherers. The objectives of the scheme are to

• To provide the fair price to the MFP gatherers for the produce collected by them and improve their income level

• To guarantee sustainable harvesting of MFPs.

• The MSP scheme aims at creating a framework to ensure fair returns for the produce gathered by tribals, assurance of buying at a certain price, primary processing, storage, transportation etc. while assuring sustainability of the resource base.

7 Coverage of Primary Survey

The current study by the IIPA looks deep into state level economic activities linked to MFP collection. A total of 2609 households were sampled and canvassed with a structured questionnaire to elicit details about the MFP collection process. All the households belonged to the tribal communities. Figure 1 below provides a snapshot of household representation by States. Of the total number of households surveyed, Andhra Pradesh had the highest share is 14.6 per cent, followed by Gujarat (12.5%). The share of Karnataka and Rajasthan is 12 per cent each. Odisha is the least with 7.6 per cent of representation. 

8 Methodology 

Primary survey along with secondary data analysis forms the analytical underpinning of this study. 

Methodology for Selection of MSP Beneficiaries of MFP and Field Report

E.8.1 Sample Frame:

The proposed survey unit for the impact assessment study composed of 3000 MSP beneficiary households from 80 selected villages spread over 10 states, 20 districts, 40 blocks. Beneficiary households are those with at least one member engaged in gathering MFP and selling at MSP during the three years. Only one beneficiary from one tribal household was to be selected for conducting the interview using the structured questionnaire.  

Only those states have been selected where the MSP scheme for MFP have been implemented since 2015-16.  Within each selected state, two districts with highest tribal population have been selected.  Similarly from each selected district 4 blocks with highest tribal population have been selected.  From each block 2 villages have been selected and in each village 38 beneficiaries of MSP were proposed to be selected for canvassing the questionnaire using CAPY for real time data.  

TableE.1: Distribution of beneficiaries of MSP for MFP by State, district, Block and Village

CAPI Survey

9 Chapterization Scheme:

The present study is a detailed research on the “ Evaluation of MSP for MFP scheme”. The Report will run into 15 chapters. The first Chapter introduces the terms of Reference of the study and states its objectives, scope, methodology, literature review and relevant studies  and limitations. The second chapter portrays  the implementation status of Minimum Support Price for Minor Forest Produces. It was initially implemented in the Indian states which posses Scheduled areas and tribes in accordance with Fifth Schedule of the Constitution of India for 12 identified Minor Forest Produce abundantly available in these states. Since November 2016 onward the scheme become applicable for all States and  the number of MFPs covered under the list has reached to 49 according to the notification issued by the Ministry of Tribal Affairs.The third chapter is based on the empirical data on  the demographic profile of the gatherers which represent their family size, marital status, economic profile and education status.The fourth chapter  gives  MSP scheme related information of gatherers. Whether they are acquainted with this scheme or not . What are the sources of acquiring information about the schemes. The status of selling MFP and mode of their payment. The chapter five analyses  how the  MFP gatherers tie up with Agencies/ Organizations for financial help, collection, processing, training and information on Minor Forest Products. These agencies assist in sale of MFP, provide help/aid for collection of MFP. They also help MFP gatherers to know about the Minimum Support Prices (MSP) and impart training for them. It is observed, however, that the purpose of registration mostly helped MFP gatherers to sell their products. The chapter six analyses the processing of minor forest products. Hurdles faced by gatherers for collecting Minor Forest Products. Machinery used for processing and who provides monetary help for purchasing of machines and tools and type of value addition gains for MFP.

The chapter seven analyses the pattern  of sales and procurement of minor forest products. Their destination of sales of Minor Forest Produce ,Quality check of MFP by Procurement Agency and profit sharing of MFPs sold through MSP. 

The chapter eight talks in depth about the storage and preservations of MFP’s. Type of storage facilities used for MFP’s and problems faced for storage of MFPs. 

The chapter nine includes the infrastructure, haat bazaar and transportation. Distance of HB from the place of residence. Their mode of travelling to Haat Bazar and frequency of visit to Haat Bazar. The infrastructure and amenities at Haat Bazar .

 The chapter ten analyses  the gender related issues. The Statewise distribution of the engagement of female members. The gender distribution clearly shows the importance of women member of the respondent’s family in the collection of MFP. Gender discrimination in payments received from sales of MFPs and reasons thereof. Women participation in skill training in MFP by type of training.

The chapter eleven gives the scheme impact before and after selling MFP at MSP. The number of household members engaged before and after sale of MFP at the Minimum Support Price. Annual household income before and after selling of MFP at MSP shown a distinct shift in the higher income range and mostly concentrated to 50k-100k and 100k-200k ranges.

The chapter twelve includes the monthly household expenditure (Rs.) before and after selling MFP at MSP. There is a distinct shift in income in the After-Sale scenario compared with the Before-Sale ones.

The chapter thirteen includes housing conditions and amenities before and after selling MFP at MSP. Availability of electricity, drinking water, toilet facility and kitchen before and after selling MFP at MSP. Type of energy used for cooking before and after selling MFP at MSP. Ownership of livestock before and after selling MFP at MSP. Land owned for cultivation before and after selling MFP at MSP. Type of vehicles owned before and after selling MFP at MSP.

Type of problems faced by MFP gatherers and bottlenecks of the scheme have been defined in chapter fourteen.  Lack of training,  Non cooperative government officials, Lack of information, Shortages of storage space,  Delay in payment etc.

Conclusions and recommendations, as per our empirical findings are presented in chapter fifteen. Most tribals live in forested regions and their economy is deeply based on gathering MFP from forests. These MFPs provide subsistence and farm inputs, such as fuel, food, medicines, fruits, manure, and fodder.  The collection of MFP is a source of cash income for them, especially during the slack seasons

10 Findings of the study as per the empirical data (Quantitative):

1. Delay in setting up of procurement agencies: Delay in setting up of procurement agencies increased the perishing of MFP collected during the last year to 56.4 per cent of the overall respondents. The State level scenario is grim in Odisha (99.5%), Chhattisgarh (97.1%), Madhya Pradesh (80.7%) and Rajasthan (61%). 

2. Lack of awareness about scheme/ Lack of display of the price board at market/ less scheme promotion/lack of knowledge: It has been observed that the scheme of MSP for MFP has not reached  among the tribal gatherers on a  large scale and is limited to few areas of the district. The implementation unit in the district has failed to spread the awareness amongst the gatherers or  accommodating more gatherers under the scheme. The only thing that is happening under the scheme is that “few gatherers are just informed about the price of the produce.

3. Distance to be covered to collect MFP: It has been observed that the distance covered in the  process of MFP collection is difficult for gatherers. On an average, people travels 2.7 kilometre to collect MFP from the forest area.

4. Training Facility: It has been observed as per the survey, that the training  provided to the overall sample respondents is very little, which is over 6%. The observations show that the training centres are very far from the gatherers village and the transportation facilities are not provided to the gatherers therefore a large number of MFP gatherers get adversely  impacted. The training provided to the tribals regarding the MFP has a limited scope, as they are only trained about collection and primary level of processing but not about the value addition which is the biggest obstacle in their development. On conversation with the tribal leader who were criticizing the training centre said that “training is happening only on paper and not on ground” and funds granted under the scheme also not utilized properly.

5. Lack of training among the women MFP collectors: The gender distribution clearly shows the importance of women member of the respondent’s family in the collection of MFP. Only 11 per cent of the women received skill training from the nine States. A total of 27 women members received skill training, mostly belonging to Maharashtra and Andhra Pradesh. It shows the type of training undertaken by women members. They are given training for collection only not for Storage and processing of MFP.

6. Transportation problem: the maximum number of people (32.3%) goes to Haat Bazar (HB) by Foot only, followed by Cycle (31.1%) and Bus (23.4%). Government vehicle is virtually non-existence (only 4.1%).

7. Middleman Problem:  It has been observed that the unorganized nature of trade leads to the inequitable distribution of profit amongst the tribal farmers. This results in low cash income to the tribal people and the substantial gain is reaped by the middle man. This is one of the reason that earning from the MFP is becoming less significant to the tribals. The sale destination to Middlemen in Madhya Pradesh is 50 per cent, while for Maharashtra, it is over 25 percent. The common practices followed by the traders are under weighing, unfair grading and opportunist pricing. Most farmers sell their products individually and do not aggregate their product, thus having to face exploitation by traders and middle men.

8. Lack of suitable tools: The primary processing of lac requires a machine with an initial value of Rs. 70,000, which most of the communities are not able to afford. This prevents them from value addition of lac. There is virtually no use of machine tools by the MFP gatherers for processing the produce collected from forest.

9. Shortage of storage space: It has been observed that in major tribal dominated states, the procurement agencies and the gram sabha lacks the space for storage facilities. Most NTFPs and seasonal products are perishable in absence of appropriate storage facility; and it require immediate disposal. The MFP gatherers mostly use home as their primary storage point. Among the problems faced by the households, shortages of storage space is the most important (46%). This means that the primary collector is vulnerable to distress sale or sale at a low price due to lack of adequate storage facility. The problem of lower price is compounded by lack of value addition that deprives the gatherer of better gain. 

10. Infrastructure and Amenities at Haat Bazar : Infrastructure and amenities at Haat Bazar are important for the MFP Gatherers for storage and transportation facility. Moreover, drinking water facilities, shade are all important component of Haat Bazar. Most of the respondents (26.3%) said that HB has a permanent structure, followed by platform (17.4%). A little over 15 per cent of the respondents said that drinking water facility is there in the Haat Bazar.

11. Lack of credit facilities: It has been observed that due to lack of financial aids, tribal women are prevented from Start Up like farm forestry mini enterprise which brings economic as well as social gains to them. It helps to build their confidence and instill the spirit of entrepreneurial capacity in them. Only about 11 per cent of the respondents received financial aid while almost 90 per cent left out. This is one of the major limitations to provide support to the tribal households engaged in MFP collection.

12. Barter System of Trade: It has been observed that in some of the states, barter system of trade still exists. It is difficult to determine, how much quantity of produce is to be exchanged with other produce. Some sorts of malpractices are followed by the middleman for the high value minor forest produce. More than 30 per cent used barter system of measurement in Maharashtra.

13. Selling through Government Agency Apathy of government officials: It has been observed that the gatherers do not go to the Haat Bazar to sell their produce but the buyers come to their village to buy the produce on the private rate. One of the reason why gatherers sell their produce to the private buyers, they provide instant money in cash for the produce sold by the gatherers, which is absent in the case of government buyers. The gatherers never receive any advance money, or a share of profit from any of the agencies whether it is private or government.

14. Problem with government officials in determining quality: It has been observed in the field study that an unsustainable technique of harvesting MFPs is leading to poor resource regeneration. There is a lack of standardization of the quality of MFPs. The value chain, from collection to the sale of the produce, is largely unorganized and informal leading to inequitable distribution of profits. More than 86 per cent of the respondents says that they have to go through quality check while around 14 per cent of the MFP Gathers are relieved from quality checkup. Associated with the quality check, the issue of rejection/acceptance becomes important. The rejection is maximum in those States where the quality adherence is the most, i.e., Madhya Pradesh, Karnataka, Chhattisgarh and Jharkhand.

15. Lack of value addition: It has been observed that MFP gatherers lack the knowledge of value addition.  Almost all the lac farmers sell lac without any value addition, due to the low shelf life and this fetches them a lower price. Value addition gains of MFP processing is confirmed by only 23 per cent of the overall respondents. Karnataka, Gujarat, Rajasthan and Chhattisgarh noted no change in the value addition gains.

16. No profit sharing among the MFP gatherers: It has been observed that the Primary collectors and producers get the least share from their hard-earned product. There is almost no profit sharing among the MFP gatherers and 87 per cent received no extra profit.

17. Overlapping with other Government Schemes: In two of the sample states, i.e., Odisha and Gujarat, there are significant influence of State Government Schemes. The Odisha Livelihood Mission and Gujarat Rajya Van Vikas Nigam are two such schemes that have significant influence on the ongoing scheme.

18. No proper registration of MFP gatherers with government agencies: There are two States, Karnataka and Odisha, where the respondents are not registered with any of the organization. Who have not registered, majority of them (53%) asserts that they do not required to be registered, while 25 % of them are unaware.

11  Conclusion and recommendations

Most tribals live in forested regions and their economy is deeply based on gathering MFP from forests. These MFPs provide subsistence and farm inputs, such as fuel, food, medicines, fruits, manure, and fodder.  The collection of MFP is a source of cash income for them, especially during the slack seasons. 

Low returns to forest gatherers are not only due to policy distortions arising out of public and private monopolies, and to trader/middlemen’s hold over the poor and ignorant forest dwellers, they are also the result of the dispersed and uncertain production combined with fluctuating demand and undeveloped markets. 

It is better to set up promotional Marketing Boards with responsibility for dissemination of information about markets and prices to the MFP gatherers, and organising them into self-help groups. 

Government should encourage bulk buyers and consumers such as exporters of herbal medicines to establish direct links with the villagers. This has happened in a few locations where manufacturers of herbal medicines have bought anole directly from the producers to boost production and income of the MFP gatherers

Government should also address issues like creating proper marketing yard, market information system, storage space and processing facilities at the local level. Simple processing activities such as broom making, leaf plate making, tamarind processing, mat and rope making should be encouraged in the household/ cottage sector.

Despite the fact that women collectors are more, little so far has been done to train them. This needs urgent attention.

12 Important recommendations which are evidence based in our study are as following:

(i). As per the terms of reference titled “whether scheme structure, design features, and guidelines are appropriate to meet the objectives of the scheme”, these are the following recommendations based on empirical findings:

1. Increase in the MSP rate: It has been observed from the field study, that the Primary collectors and producers get the least share from their hard-earned product so there is a need to increase the MSP rates. It would not only assure remunerative prices to tribal farmers, but would also help increase investment in agriculture and thereby, production. The criteria for fixing prices for MSP must be current costs rather than a historical basis.

2. Provision of godowns/cold storage for procurement in bulk: The field observations show that, in major tribal dominated states, the procurement agencies and the gram sabha lacks the space for storage facilities. Most NTFPs and seasonal products are perishable in absence of appropriate storage facility. The stocks procured by State designated agencies in each Haat bazaar is , probably , too small and therefore, this needs to be transported to the aggregation centre’s from where bulk quantity is  transported to the centrally located godown/ cold storage. Therefore, it is essential to establish a godown of 50 MTs at block level to aggregate the stocks procured at each Haat. The cost of land and recurring expenses may be met by respective State agencies.

3. There should be a provision of providing storage and transport infrastructure of the government agencies to primary collectors’ on rent. The observations from the field survey show that the transportation facilities are not provided to the gatherers therefore the number of MFP gatherers get adversely impacted. There needs to be a complete overhaul of procurement procedures and more focus must be on local procurement especially at the panchayat level. Use of modern warehousing infrastructure is needed like modern storage facilities, weighing bridges etc. to extend shelf life and prevent rotting of the produce.

4. Strengthening of financial institutions for promotion of NTFP micro-enterprises: It has been observed from the field survey that due to lack of financial aids, tribal women are prevented from Start Up like farm forestry , mini enterprise which brings economic as well as social gains to them. There is a need to involve financial institutions to promote community based micro-enterprises with clear benefit sharing mechanisms. It is necessary to involve financial and other public sector banks in NTFP enterprise development.

5. Immediate cash transfer by government agencies: The data shows that  one of the reasons to why gatherers sell their produce to the private buyers, the later provide instant money in cash for the produce sold by the gatherers, which is absent in the case of government buyers. Thus, Government Procurement Agencies should visit the villages every season. Immediate cash for the produce should be provided by the Procurement Agencies.

6. Incompatible tax structure: The present tax structure for many NTFP’s (tendu patta, lac, gum, mahua, medicinal plants, sal seeds, etc.) is incompatible within the surveyed states which needs to be restructured.

7. Free trade for NTFPs: The primary collectors should have the right to collect, process and market NTFPs freely. However given the low bargaining position of primary collectors and high likelihood of exploitation at the hands of the local traders; special mechanism to safeguard the interest of primary collectors should be created. Free trade for all NTFPs except the currently Nationalized NTFPs (Kendu leaves, Bamboo and Sal seeds) should be allowed; and these should be taken out of State Regulation. The Minimum Support Price (MSP) should be based on the principle of incremental margin working backwards from the actual market price, as followed by Girijan Cooperative Corporation in Andhra Pradesh.

(ii). As per the term of reference titled “whether specific deliverables of the scheme/programme are appropriate for fulfilling the development needs of communities, as on date”, these are the recommendations based on empirical findings are following:

1. Skill Up-gradation: It has been observed that in the number of surveyed villages, tribal farmers lack the necessary skills and technical knowledge required for scientific cultivation of MFP. Hence, there is a need to do Skill Up-gradation, development and extension of Appropriate Technology for NTFP processing and to encourage involvement and active role of NGOs, Experts, research institutions for marketing and training support to the primary collectors and their Cooperatives, and for R and D efforts for improving production and processing methods. 

2. Lack of detailed and research studies on MFP and its used in pharmaceutical and food industries:  Hence, for Increasing Profit from MFP, there is a need of adding more MFP to the list as there are ample MFP are available in the forest which are used to prepare medicines, if these MFP get place in the list, it can positively impact the economy of the gatherers. Gram Sabha must be included in decision making process at the grassroot level, which is missing in the scheme.

3. Promotion of Research and development: Research and development on the possible uses of MFPs (for instance, in pharmaceutical and food industries) needs to be undertaken. There is a need to adopt a more scientific approach to primary collection and allocate higher budget in research to boost productivity.

4. Training at grass-root level: The training provided to the tribals regarding the MFP has a limited scope, as they are only trained about collection and primary level of processing but not about the value addition which is the biggest obstacle in their development. Thus, trainings to primary collectors, processors, and traders, and also to the front line staff require basic and advance training to build their confidence.

5. Modern tools are needed for better collection of MFP: It has been observed from the field survey that ‘hand’ (33%) is the single most important ingredient for collection MFP followed by Axe. If the value addition equipment and the training for value addition are provided, MFP gatherers can bring revolution in their economic status. Arrangement of processing machine for Minor Forest Produce like lac should be available for community use at the Gram Sabha level.

6. Capacity development: Capacity development, training, awareness building, and exposure, Skill/capacity development is very important for the foresters (particularly the sub-ordinate field staff) to successfully face the emerging challenges of accommodating community rights in forest conservation, ensuring biodiversity conservation, and managing climate change.

7. Incentives for growing NTFP crops in private land: Due to unrestricted & unscientific collection and over-use of products, the NTFP resources have greatly been depleted in past years, while their regeneration in many forest areas has gone down. Special effort is required for reducing the pressure on forest by cultivating selected species outside forest areas and undertaking intensive conservation of existing forests. The increased production thereby would not only reduce the gaps between demand and supply but also shall become the ground for sustainable NTFP development.

8. Market Information: It has been observed from the field survey that, in the interior area the private players manipulate the prices due to unawareness of the scheme of “MSP for MFP” and lack of knowledge among gatherers about current prevailing prices of major MFP’s in major District or State. Markets further aggravate the inability to negotiate for better prices. Thus, market Information dissemination is very crucial and this role could be taken up through various existing Government organizations. Greater access to relevant market information can enhance the bargaining power of the primary collectors in market situations.

9. Transparency in transaction: There should be e-billings of the MFP purchased so that accountability and transparency could be achieved.

10. Mobile network should be strengthened for better communication: Daily prices and quantity traded at major mandis/bazaars would also be displayed on the web of TRIFED and state level agencies. Such information will be collected and forwarded to the TRIFED by market correspondents.

11. Stronger linkages between the primary producer and the final consumer: Stronger linkages should be developed between the primary producer and the final consumer through better retail network and marketing support.

(iii). As per the term of Reference titled “Whether measurable outcomes have been defined for the scheme”, these are the recommendations based on empirical findings are following:

a) Outreach of the scheme in the remotest tribal areas: Field survey shows that the scheme of “MSP for MFP” has not reach among the tribal gatherers at the large scale and is limited to few areas of the district. Effort should be made to spread the knowledge of the scheme in the remotest area of tribal district. This initiative helps tribal to build their capacity to bargain and a forward move in fetching the higher prices for MFP.

b) Market strategies for better sale: Under the market strategies some learning and innovations are needed to be followed to ensure better sale. Shifting sale activities of MFP from isolated places to prominent market locations could bring in subsequent changes in sales and well-being.

(iv). As per the terms of reference titled “To what extent the scheme has perlocated at grass root level for the benefit of tribal households, especially female households”, these are the recommendations based on empirical findings are following:

1. Absence of Grass root level procurement which is proposed to be taken through SHGs associated with implementing agencies: The SHGs should  be empowered to undertake the procurement operations on scientific and systematic lines. The SHG members can  undertake preliminary value addition like cleaning, grading, drying & home level primary processing under the direction and supervision of State Implementing Agency. The stock after preliminary processing can  be supplied by these SHGs to the storage of State Implementing Agencies. For higher value addition of MFPs, PPP model can be adopted.

(v). As per the terms of reference titled “Whether the scheme is gender neutral or has gender specific components and in case of inherent gender imbalance, changes required”, these are the recommendations based on empirical findings are following:

a) Capacity building among the women MFP gatherers: From the field survey data shows that only 11 per cent of the women received skill training from the nine States. A total of 27 women members received skill training, mostly belonging to Maharashtra and Andhra Pradesh. More than half of the women are involved in MFP collection but very little training is provided to them, thus it is necessary to build the capacity among the women MFP gatherers through training. 

b) NTFP management, processing and marketing: Concentrated efforts are required to build capacity of primary forest produce gatherers, officials of forest department, and executives of government procurement agencies on different aspects NTFP management, processing and marketing to women gatherers. 

(vi). As per the terms of references “To identify bottlenecks in the implementation of the scheme and changes required in the scheme for improving delivery mechanism”, these are the recommendations based on empirical findings are following:

a) For Improved Delivery mechanism : It is important to increase the capacity of the primary collectors to bargain for better prices and to collectively take up processing and marketing of NTFPs, it is essential to promote and support collective entities such as Thrift and credit groups, user groups and Primary cooperatives of collectors.

b) Creation of facilitative environment: It is important to create facilitative environment for such organizations. Till now such groups are legally unable to collect and trade in most NTFPs due to the existing Government NTFPs policies.

c) Thrift and credit groups, user groups and Primary cooperatives of collectors: The Government needs to consciously support and facilitate such group activities by the primary collectors as a primary poverty alleviation measure.

d) Direct purchase by Government Agency should be expanded: Most gatherers sell their products individually and do not aggregate their product, thus having to face exploitation by traders and middle men. Thus it is necessary that the government agency should actively participate in the procurement of MFP at the village level so the intervention by the middle man would be eliminated.

e) Purchase period of the MSP Procurement Centre should be extended: The Procurement of NTFP should be throughout the year not limited to particular season

f) Active participation of Organizations such as (Tribal Development co-operative corporation (TDCC) at grass-root level: Organizations such as ( Tribal Development Co-operative Corporation (TDCC ) should have a support role to grassroots level organizations/ primary cooperatives of collectors. They have a role of play in providing market linkage (in a free market scenario), administer minimum support prices, upgrade skills and capabilities of the grassroots organizations etc. These agencies should function as or be replaced by Marketing Promotion Boards.

g) Redefining the role of TDCC: Repositioning of Tribal Development Co- Operative Corporation/ redefining its role more as a marketing support organization instead of monopoly procurer of NTFPs.

h) Promotion of NTFP based Micro-enterprises: There exists great scope for Micro-enterprises based on NTFPs for local level processing. There exists potential for encouraging Mahua Storage and marketing enterprise, oil extraction from Mahua Seed, decorticating of Char seed etc.

i) Imparting training for better collection with reference to particular MFP: Some of the gatherers use net to collect the Mahua flowers. Prior to the training, they collect Mahua flower lying in the field. The process of collection was not a hygienic process as the flowers gets dusty and muddy. But, once they are imparted with training, they can learn the sustainable way of harvesting.

(vii). As per the terms of reference, “Is there any overlap with other scheme?” these are the following recommendations based on the empirical findings are following:

Overlap of government schemes: Odisha and Gujarat, there are significant influence of State Government Schemes. The Odisha Livelihood Mission and Gujarat Rajya Van Vikas Nigam are two such schemes that have significant influence on the ongoing scheme. The Overlapping of the scheme should be lessened.