Van Dhan Scheme Current Affairs - 2019

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Ministry of Tribal Affairs launches revised MSP for MFP

The Union Tribal Affairs Minister Jual Oram launched the revised MSP for MFP for the welfare of Tribals at the National Workshop organized by TRIFED under Ministry of Tribal Affairs.


Minimum Support Price Scheme (MSP) for Minor Forest Produce (MFP) is a centrally-sponsored scheme aimed to ensure fair and remunerative price to MFP gatherers.

The scheme is officially known as ‘Mechanism for marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and development of value chain for MFP’ was planned as a social safety initiative for MFP gatherers.

The MSP for MFP scheme was first launched in 2013 but the severe gaps in its implementation led to the programme remaining dormant. To revitalize the programme the revised guidelines have been issued. The revised guidelines:

  • Provide for a revised MSP in the range of 30-40% on average.
  • The procurement of these MFPs will commence in haat bazars, where tribals bring their produce with the facilitation provided by state government agencies and district collectors.
  • Lay down a decentralised implementation framework.

The implementing agency TRIFED has asked the states to submit within 45 days their roadmap for procurement and marketing of produce from the village level to the state level

For the value addition of MFPs, better marketing opportunities under the Van Dhan Scheme was launched last year. The Tribal Affairs Ministry is now planning to scale up this scheme to all tribal districts. The Ministry has asked the state government to prepare and share plan to set up the Van Dhan centres meant to value add to forest produce to boost the market for products made from MFPs.

Month: Categories: Government SchemesUPSC


Van Dhan Scheme: Government proposes to set up 3,000 Van Dhan Kendras involving 30,000 SHGs

The Union Government has proposed to set up 3000 Van Dhan Kendras involving 30,000 Self Help Groups (SHGs) across the country under its Van Dhan Scheme. This will help in empowering tribals by providing them skill up-gradation and capacity building training for value addition of forest produce for modernizing traditional tribal-rural economic system.

Van Dhan Scheme

The scheme was launched by Prime Minister on 14th April, 2018 during the celebrations of Ambedkar Jayanti at Bijapur Chattisgarh. It aims at targeting livelihood generation for tribals by harnessing non-timber minor forest produces (MFP), the true wealth of forest (i.e. Van Dhan). For this, it will provide them skill up-gradation and capacity building training for value addition of forest produce. Value addition will ensure remunerative prices to tribals.

It also aims at building upon traditional knowledge and skill sets of tribals by adding technology & IT for value addition. It also aims to promote MFPs-centric livelihood development of tribal gatherers and artisans It will promote and leverage collective strength of tribals (through SHGs) to achieve scale.

Implementation: It will be implemented through Ministry of Tribal Affairs at Central Level and Tribal Cooperative Marketing Development Federation of India (TRIFED) as nodal agency at National Level by providing training and technical support. At State level, state nodal agency for MFPs and district collectors will play pivot role in scheme implementation at grassroot level.

Van Dhan Vikas Kendra: TRIFED will facilitate establishment of MFP-led multi-purpose kendras predominantly forested tribal districts. These kendras will be cluster of 10 SHGs comprising of 30 tribal MFP gatherers each. They will provide skill upgradation and capacity building training and setting up of primary processing and value addition facility. Locally these kendras will be managed by Managing Committee (an SHG) consisting of representatives of Van Dhan SHGs in cluster. Big corporates will help to create secondary level value addition facility at district level and tertiary level value addition facility at state level under the PPP model.

Month: Categories: Government SchemesNational