T Haque Committee on Minimum Support Price for Non-Timber Forest Produce

The T. Haque Committee on Minimum Support Price (MSP) for Non-Timber Forest Produce (NTFP) was constituted by the Government of India in 2011 to develop a structured mechanism for ensuring fair and remunerative prices for forest-dependent communities engaged in the collection and sale of non-timber forest produce. The committee was chaired by Dr. T. Haque, an eminent agricultural economist and former chairman of the Commission for Agricultural Costs and Prices (CACP). Its recommendations have played a pivotal role in strengthening the economic security of tribal and forest-dwelling populations across India.

Background and Context

Non-Timber Forest Produce (NTFP) refers to all biological materials, other than timber, that are harvested from forests for human use. These include products such as tendu leaves, mahua flowers, honey, sal seeds, lac, tamarind, gums, resins, bamboo, and medicinal plants. NTFPs constitute a major source of livelihood for tribal communities, particularly in central and eastern India, where they contribute substantially to household income and subsistence needs.
Historically, NTFP markets were characterised by exploitation, price volatility, and dominance of middlemen, leading to low returns for primary collectors. Recognising these challenges, the Ministry of Panchayati Raj and the Ministry of Tribal Affairs proposed an institutional framework for Minimum Support Price (MSP), ensuring a safety net similar to that available to farmers under the agricultural MSP system.
To design and operationalise this mechanism, the T. Haque Committee was established to provide a comprehensive policy and pricing structure for NTFPs at the national level.

Objectives of the Committee

The major objectives of the T. Haque Committee were:

• To recommend a scientific mechanism for determining MSP for selected NTFPs.
• To suggest criteria and methods for revising MSP periodically based on market conditions.
• To identify priority NTFPs for MSP coverage at the national level.
• To propose an institutional framework for procurement, storage, and marketing of NTFPs.
• To ensure that forest gatherers receive fair remuneration while maintaining sustainability and ecological balance.

Key Recommendations of the Committee

The T. Haque Committee made several recommendations addressing pricing, institutional arrangements, and capacity building for effective implementation of the MSP scheme.

1. Introduction of a National-Level MSP Scheme:
   • The committee recommended that the Government of India establish a nationwide MSP scheme for selected NTFPs, similar to agricultural commodities.
   • MSP should act as a price floor, ensuring that no collector sells below the fixed rate.
2. Scientific Pricing Mechanism:
   • The MSP should be determined by factoring in labour input, transportation costs, collection efforts, value addition potential, and local market conditions.
   • Periodic revisions should reflect inflation, demand, and supply fluctuations.
3. Selection of NTFPs for MSP Coverage:
   • The committee initially proposed minor forest produce items of high livelihood value to be included under the scheme, such as:
     • Tendu leaves
     • Sal seed
     • Mahua flowers and seeds
     • Lac
     • Tamarind
     • Honey
     • Gums and resins
     • Bamboo and cane
   • The list could be expanded periodically based on regional importance.
4. Institutional Mechanism for Implementation:
   • The Ministry of Tribal Affairs was designated as the nodal agency for overall coordination.
   • Tribal Cooperative Marketing Development Federation of India (TRIFED) was identified as the national-level implementing agency, responsible for operationalising the MSP scheme and supporting state-level federations.
   • State-level agencies, forest departments, and tribal cooperatives were to handle procurement and marketing at the grassroots level.
5. Procurement and Value Addition:
   • The committee suggested establishing procurement centres in tribal areas to purchase NTFPs directly from collectors at MSP.
   • Emphasis was placed on value addition and processing at local levels to maximise income generation.
   • Encouragement of community-owned enterprises and self-help groups (SHGs) for decentralised processing and marketing.
6. Financial and Institutional Support:
   • Creation of a price stabilisation fund to manage market fluctuations and ensure continued procurement.
   • Provision of storage, transportation, and infrastructure support for NTFP collection centres.
   • Use of digital platforms for price dissemination and transparency.
7. Sustainability and Ecological Balance:
   • Collection practices should ensure sustainable harvesting and conservation of forest biodiversity.
   • Promotion of community-based forest management under the Forest Rights Act (FRA) 2006 and Panchayats (Extension to Scheduled Areas) Act (PESA) 1996.

Implementation of the MSP Scheme for NTFPs

Based on the T. Haque Committee’s recommendations, the Government of India launched the MSP for Minor Forest Produce Scheme in 2013, implemented through the Ministry of Tribal Affairs and TRIFED.
Key features of the implemented scheme include:

• MSP coverage for 75 NTFP items (as of recent updates).
• Annual review and revision of MSP rates.
• Establishment of Minimum Support Price Procurement Centres in tribal regions.
• Financial assistance and capacity building for state agencies and tribal cooperatives.
• Direct benefit to tribal gatherers through fair pricing and market access.

States such as Chhattisgarh, Odisha, Jharkhand, Madhya Pradesh, and Maharashtra have been pioneers in implementing the MSP mechanism and establishing state-level federations for procurement.

Impact of the Committee’s Recommendations

The T. Haque Committee’s framework has led to several positive outcomes:

• Income Security: Ensured fair prices for millions of tribal gatherers dependent on forest produce.
• Reduction in Middlemen Exploitation: Direct procurement by government agencies curtailed exploitative trade practices.
• Promotion of Value Addition: Enhanced processing and marketing capacity of local cooperatives.
• Empowerment of Tribal Communities: Strengthened community institutions and encouraged sustainable forest management.
• Contribution to Inclusive Growth: Integrated forest economy into national income and livelihood planning.

Challenges in Implementation

Despite its achievements, certain challenges persist in the practical implementation of the MSP mechanism:

• Inadequate Awareness: Many tribal collectors remain unaware of MSP rates and procurement centres.
• Limited Infrastructure: Storage, transport, and processing facilities are inadequate in remote forest areas.
• Variation Among States: Implementation remains uneven due to differing administrative capacities.
• Market Linkages: Difficulty in connecting local collection points to broader national and international markets.
• Sustainability Concerns: Overharvesting in some areas raises ecological issues.