MSP to check monopoly & Left Wing Extremism

By SNV Sudhir

Visakhapatnam, Aug 20, 2013: In a bid to tackle the left wing extremism in tribal tracts like Vizag Agency, the union cabinet had recently approved a Centrally Sponsored Scheme for marketing the non-nationalized Minor Forest Produce (MFP) and development of a value chain, through Minimum Support Price (MSP).

This will be a measure towards social safety for MFP gatherers, who are primarily members of the Scheduled Tribes (STs) most of them in Left Wing Extremism (LWE) areas. The new scheme will also check the monopoly of state agencies like Girijan Cooperative Corporation (GCC) in Andhra Pradesh. Under the new scheme, GCC should also pay the rate fixed by the union government to the tribals, without exploiting them. Until now the GCC fixes the rate and buys various forest produce like tamarind and gums.

The scheme would cover 12 MFPs, which are not nationalized in states having Scheduled Areas and Scheduled Tribes in accordance with Fifth Schedule of Constitution. These are Andhra Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Jharkhand. The 12 MFPs are Tendu, Bamboo, Karanj, Mahuwa Seed, Sal Leaf, Sal Seed, Lac, Chironjee, Wild Honey, Myrobalan, Tamarind, and Gums (Gum Karaya). 

The Ministry of Tribal Affairs will be the nodal ministry for implementation and monitoring of the scheme. The Minimum Support Price would be determined by the Ministry with technical help of TRIFED.

The price of MFP is most often determined by the trader than by demand and supply  Most of the MFP rich states are affected by left wing extremism making it easier for unscrupulous traders to operate freely in the market and the state is many a time unable to play effective role.

Of the total 25 MFPs dealt by the GCC in Vizag Agency, around 4 including tamarind come under new MSP scheme going to be launched by the union government. GCC’s annual turnover is Rs 25 cr and 40 percent of it comes from these 4 MFPs. “This new scheme would not only benefit the tribals but also the state agencies like GCC.  The proposal also provides for sharing of losses, if any, by the centre and the states in 75:25 ratio,” said GCC general manager, Ashok Kumar.

The Tribal rights activist, Ganjivarapu Srinivas is also hopeful that the scheme would help the tribes from being exploited by private traders and also the GCC.