KL advocacy

Kendu leaf has a great contribution in the livelihoods of the poor. Kendu Leaf (KL)
provides employment opportunities for millions of poor belong to tribal, harijans, and
other backward communities including landless during summer when there is hardly any
agricultural work or opportunities of wage earning. In Orissa, Kendu leaf plucking is
carried out in a spread out area of 6 lakh hectors with Bolangir, Angul, Sambalpur,
Sundargarh, Koraput, Kandhamal, Kenojhar and Mayurbhanj being the major KL
producing districts. Government report claims that KL operation creates 30 million
mandays within three to four months. More than 8000 phadis are working in the state
where the procurement and processing of leaves takes place. The kendu leaf business is a
pride for Orissa because of its specialized operations. About 4.5 lakh quintals of these
leaves are produced annually in the state, most of which are in the processed form, i.e.
graded into different qualities.

KL was nationalized in 1973 with securing the rights of the pluckers as one of the
objectives. The KL wing of the Forest Department manages all the operations related to
the production and processing of KL, and Orissa Forest Development Corporation sells
the same as a commission agent. The net profit goes to the state exchequer, 50% of which
is ploughed back as Kendu leaf grant for the development activities in the state.

Orissa produces about 14-17% of India’s total production of kendu leaves. It is the only
state producing processed leaves, hence has got a monopoly in the market of processed
KL. Orissa government generates net revenue of Rs 150 Cr., on an average, out of the KL
trade.

The leaves are used in bidi making. Since its inception, the KL trade has been exclusively
dependent on the bidi market in the absence of any other viable commercial use. The
production of Orissa goes mostly to West Bengal, and only about 10% or so is consumed
partly by the bidi manufacturing units of the state, and partly for export purpose.

Any instability in the KL business has a risk to affect the pluckers who come from the
poor and marginalized sections, and are mostly women & children. There are about 10
lakh registered pluckers (card-holders) in the state, and to take into account their
associates in the field, it is a question of the livelihood of around 18 lakh people.

A study by Vasundhara, Bhubaneswar on issues related to KL reveals the following with

suggestions that:
• The number of real pluckers is much more than the registered card holders of 10
lakh. This denies minimum benefits to all the pluckers who are not enrolled in the
official list. So a proper remuneration should be made of the KL pluckers.
• The Phadi committees do not function well and the members hardly understand
their role in the KL operation. There is a need to strengthen the Phadi
committees in every Phadi area.
• 50% of the profit generated out of KL trade is used as KL grant, which is misused
by the Government and is distributed to all over the state. The KL grants should
be diverted on a priority basis to the Gram Panchayats with KL operation.
• In other states like Chhatishgarh and Madhya Pradesh, 70% of the net profit is
ploughed back to the pluckers directly and another 30% is spent on development
activities, and conservation of forest and NTFP. Government of Orissa should
also declare a revised and comprehensive KL policy which should aim at
sustainability of KL operation with greater benefit to the KL pluckers.
• The Phadi committees are claimed to have been made to facilitate the production
& processing of leaves, but their actual involvement as well as beneficiary
impacts are doubtful. At production and processing level, there have been various
kinds or irregularities. There are instances of corruption and leakage at the phadi
level operations like bush cutting, repairing of phadi etc. For example, it is
calculated to have a misappropriation of minimum Rs2.5 Cr during bush cutting
only. To avoid leakage and misappropriation of fund at the Phadi level
operations, there is a need of strengthening the Phadi committees and should be
formed properly as per provisions and through Gram Sabha.
• Late payment has been a major grievance on the part of the pluckers since long.
It takes 3 to 4 months, normally, for the pluckers to receive the payment from the
KL department. Though in some areas of the state, provision of payment through
Pass Book has been implemented, it is not streamlined. This needs to be
streamlined.
• In the context of Forest Rights Act, 2006, the villagers are to claim over rights
on MFPs including KL. If the ownership right is vested with the community,
there should be an alternative institution to carry forward the KL trade.