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LATEST NEWS UPDATES | Support price plan for forest produce-Basant Kumar Mohanty

Support price plan for forest produce-Basant Kumar Mohanty

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published Published on May 31, 2012   modified Modified on May 31, 2012

-The Telegraph

Over 10 crore tribal people who earn their living by selling minor forest produce can now look forward to a better deal.

State governments and the Planning Commission have backed a proposal to fix a uniform minimum support price for 13 such items by an independent commission.

The ministry of tribal affairs is likely to take up the proposal for setting up a National Minor Forest Produce Price Commission (NMFPPC) with the Expenditure Finance Committee and the Union cabinet soon, sources said.

The government had earlier set up two committees — one under T. Haque, former chairman of the commission for agriculture costs and prices; and the other under Sudha Pillai, member secretary of the Planning Commission — to suggest how tribal people could be saved from exploitation by traders.

Both the committees suggested forming a national commission that would fix a uniform minimum support price for the 13 items — tamarind, mahua flower, mahua seed, tendu leaf, bamboo, sal seed, sal leaf, myrobalan, chironji, wild lac, gum karaya, honey and karanj.

They also said government agencies could procure these products and market them.

At present, the minimum support price for forest produce is fixed by a state cabinet or a designated agency. While the price of a particular produce varies from state to state, state government agencies take up the trade of only those items that are more viable, leaving the rest for free trade.

According to the proposal, the NMFPPC will function as an autonomous body under the tribal affairs ministry. While fixing the minimum support price, it will consider factors like the time involved in collecting the forest produce, the prevailing wage rate, transportation costs, market price and the demand for such items.

The commission will be headed by a chairperson and have five other members, including two with expertise in economic analysis and marketing of minor forest produce. State institutions will procure the items at the price fixed by the NMFPPC, according to the proposal. The commission will provide subsidy to the state institutions if they incur losses while marketing the produce.

The Centre will set up trade centres close to major marketing hubs. It will also set up cold storage and quality testing facilities at these centres.

“The states welcomed the initiative. The states also emphasised on financial assistance from the Centre to modernise haats. The Centre has accepted their demand,” a tribal affairs ministry official said.

The Planning Commission has suggested setting up modern bazaars apart from trade facilitation centres.

The Telegraph, 31 May, 2012, http://www.telegraphindia.com/1120531/jsp/nation/story_15552638.jsp#.T8cRnJgYmDE


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