Forests form an intricate element of the social and cultural life of tribals, and it is estimated that in India, about 300 million tribal and other local people depend on forests for their subsistence and livelihood. India has an estimated diversity of 3,000 plant species from which NTFPs, generally known as Minor Forest Produces (MFP). 

Majority of the tribals live in the forest areas and depend to a large extent for their livelihood and income generation on Minor Forest Produce which form a major source of subsistence and cash income for the tribal community.  

The forest dwellers are legally empowered with the ownership and governance of the MFP through PESA (Panchayat Extension to Scheduled Areas) Act, 1996, and the Forest Rights Act, 2006.

Under Forest Rights Act, 2006, “minor forest produce” includes all non-timber forest produce of plant origin including bamboo, brush wood, stumps, cane, tussar, cocoons, honey, wax, lac, tendu or kendu leaves, medicinal plants and herbs, roots, tubers and the like.

To ensure fair returns to forest-dwelling  Scheduled Tribes and other traditional forest dwellers and as a solution to problems they were facing such as perishable nature of the produce, lack of holding capacity, lack of marketing infrastructure, exploitation by middlemen, and low government intervention at the required time, the scheme, “Mechanism for marketing of Minor Forest Produce(MFP) through Minimum Support Price (MSP) and Development of Value Chain for MFP”  was formulated by the Ministry of Tribal Affairs as a measure of social safety for  MFP gatherers. 

The Scheme for MSP for MFP and development of value chain was started by the Ministry of Tribal Affairs (MoTA) in the FY 2013-14 with an objective of providing a fair price to MFP gatherers, enhancing their income level and ensuring sustainable harvesting of MFPs. The objective of the MSP for MFP scheme is to establish a framework for ensuring fair prices for the tribal gatherers, primary processing, storage, transportation etc. while ensuring the sustainability of the resource base. 

JASCOLAMPF is notified as State Procurement Agency for Lac by the nodal department of Scheduled Tribe, Scheduled Caste, Minority and Backward Class Welfare, Govt. of Jharkhand.