The Kendu Leaf Trade: Problems & Prospects in Orissa - Vasundhara

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5.Normal trade dynamics: (Kendu leaves being dried, and bagged for transportation as phal) While other KL-growing states produce only unprocessed(i.e. not graded according to quality) leaves otherwise known as phal, most of the Orissa production is in the form of processed leaves. Basically, five categories of leaves are recognized depending on the size, colour, and texture, etc.. However, OFDC distinguished total 9 categories among which some are actually a mixture of two categories. Current practices recognize atleast 7 categories, like I,III, IV, IVs, and IVm (‘s’ stands for super and ‘m’ for medium).The so-called GL, though considered equivalent to grade-IV, is sold separately. Production of phal leaves is cheaper, and hence the sale price is considerably lower than that of the processed leaves; but transportation is expensive as their bags tend to be much more bulky, and hence occupy significantly higher volume for the same tonnage. However, if a trader can ensure phal leaves from a good crop area, then he has a probability of getting more or less an equivalent production of bidis for the same PPQ 3 . Processed bags are basically used for two reasons: quality control in bidi production, and as reserve for use during the period by when phal leaves lose their quality. Phal leaves deteriorate much earlier than processed leaves, and hence are first exhausted. Further, the wastage during bidi making is minimum in case of the processed leaves than in phal. 3 Normal practice measures only processed leaves in terms of their weight, and phal leaves are measured in terms of standard bags(each such bag contains about 1,000 bundles having 50 leaves per bundle in states like Chhattisgarh, but in Orissa the SB contains 1250 keries each keri having 40 leaves. The total number of leaves is thus constant in all the states and the weight of each leaf is roughly one gram.) in advance sale areas. However, in areas where advance sale is not in vogue and the Department takes responsibility of selling the phal production through OFDC, the measure is not the SB, but the PPQ or phal processed quintal. 1 PPQ is equivalent to 1.33 quintals of phal because if the latter had been subjected to processing, wastage/rejection would have reduced the weight to their weight more or less equal to the former. The PPQ measure helps compare phal production with the processed. 11
The cost of processing is compensated by the proportionately higher price of processed leaves than phal. Similarly, the higher cost of production of bidi by using processed leaves is compensated by the lower amount of wastage. However, sometimes the balance may not be so perfect, and compensation may not be adequate because of various reasons. The traders and/or KL procurers try their best to ensure this balance, or rather a misbalance in their favour by making sure that the leaves they would be getting are of adequate quality. This is done on the basis of a sampling, but sometimes unofficial means can also be used to get the bags of their interest. In case of phal production, the advance sale mechanism helps both the traders and the government because the trader offers his price on the basis of his assessment of the quality and quantity of leaves to be produced in an area. If his offer is accepted and he gets the exclusive right of procurement in the area, then he takes all possible measures to ensure his gain. Accordingly, he unofficially ensures that bush cutting is done properly though the operation is actually carried out by the KL wing. In the normal system results of the tender are announced by June, but delivery starts from October due to the rainy season. Bidi manufacturers use the reserve stock of Orissa leaves(processed) till the delivery starts from October. For the traders, there is an uncertainty till the results of tender are out after which only they are able to ascertain their transaction for the year. However, in the advanced sale mechanism the trader gets his leaves during the season itself. The adoption of this advanced sale policy in the neighbouring state of Chhattisgarh affected the traders’ procurement from Orissa as they could now themselves ensure leaves for the period during which they earlier lacked stocks and had to depend on Orissa leaves(processed ones in particular as these are much more durable). During December-January, traders place their offers through tenders for advance sale in any particular area/unit, and take delivery of all the KL procured by the Department within 24 hours of the procurement. This means that the Department no more takes the responsibility of drying or bagging the leaves, and the trader purchases the green leaves to process the same under his own responsibility. After processing, the leaves are stored in the godowns of OFDC and the trader is allowed to take delivery of the same only after clearing his dues. For 2006 crop year, 90,000 standard bags(phal) were fixed for advance sale as against 30,000 quintals(phal) to be produced departmentally. While advance sale reduces the risk in the marketing of phal, not all units are sold in advance due to traders’ preference of only areas of good production (quality/quantity). 12
Page 1 and 2: The Kendu Leaf Trade: Problems & Pr
Page 3 and 4: A keri of kendu leaves. The colour(
Page 5 and 6: Contents Kendu leaf: an introductio
Page 7 and 8: List of annexure 1. Gradation of Ke
Page 9 and 10: The Kendu Leaf Trade: Problems & Pr
Page 11: 4.Livelihood dependency of KL pluck
Page 15 and 16: Chart-1 Forms of tobacco consumptio
Page 17 and 18: manufactured in coastal Orissa . M.
Page 19 and 20: One can further see from the two fo
Page 21 and 22: 7.Implications of the crisis: While
Page 23 and 24: Chart-8 Bidi production by M/S. Cee
Page 25 and 26: Chart-12 Total production of bidi b
Page 27 and 28: production accounts for less than 1
Page 29 and 30: • There is a bumper crop. • The
Page 31 and 32: This is obviously because Orissa ha
Page 33 and 34: The Orissa Kendu Leaves Purchasers
Page 35 and 36: Total export to SL & Pak. and the s
Page 37 and 38: In Kadamdihi phadi under Kadamdihi
Page 39 and 40: manufacturers prefer bundles of les
Page 41 and 42: feeling in bidi smoking. And this h
Page 43 and 44: 9..3..2: Non-smoking utilities: It
Page 45 and 46: increased target for phal productio
Page 47 and 48: of this kind has been done in many
Page 49 and 50: though the intention behind such re
Page 51 and 52: ANNEXURE 50
Page 53 and 54: Year Annexure-2 Production, deliver
Page 55 and 56: Year Annexure-6 Sale value of KL To
Page 57 and 58: Annexure-10 Export of KL by Nationa
Page 59 and 60: Annexure-13 Qualitative production
Page 61 and 62: concurrent lease has not been grant
Page 63 and 64:
Annexure-19 Media’s concern over
Page 65 and 66:
Annexure-21 Concern over the implic
Page 67 and 68:
Annexure-23 Media concern over the
Page 69 and 70:
Annexure-25 Media concern over the
Page 71 and 72:
(Note: The above matter was publish
Page 73 and 74:
Annexure-27(contd.) Letter of M/S.
Page 75 and 76:
Page 77 and 78:
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The Kendu Leaf Trade: Problems & Prospects in Orissa - Vasundhara

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