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

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Chart-6 Cost of production versus sale price: trend of state trading of KL in Orissa during 2000-01 to 2005-06 Price in rupees 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Cost of production/quintal in rupees Average sale price/quintal in rupees 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Year (Based on the statistics provided by the KL wing and OFDC. However, the figures of the average cost of production and average sale price are only indicative as they vary under the influence of various factors. 5 ) This somewhat closed pliers-shaped trend(chart-6) of the relationship between cost of production and sale price is a matter of concern not only from the business point of view, but also from the view point of the livelihood of lakhs of KL pluckers whose income depends on a healthy business of their produce. In fact, the production in 2003 was expected to fetch an average sale price of Rs.4370/quintal, but the actual realization was about Rs.3330 only which is approx. 23% less from the expected amount. Similarly, the 2004 crop was expected to have a.s.p. of Rs.3800, but the actual realization was about Rs.3414 only which is approx.10% less from the expected amount. If we are going to reach a stage when the cost of production equals with the sale price, then one can still expect the government to continue the trade keeping the interest of the pluckers; but when the former exceeds the latter substantially, it might be illogical for the state to continue the trade. And there may be several implications of such a crisis. 5 This chart is based on data(particularly, sales) pertaining to the financial years whereas a crop-year wise comparison would have probably given a different picture. Crop-year wise data however could not be arranged from OFDC, though the concerned officer was of the view that plotting such data would not make any substantial change in the picture. 19
7.Implications of the crisis: While difficulties in sales are causing loss to the state exchequer, the impact on the livelihood of the poor people dependent on KL operations at grassroot level has become of a matter of concern because decrease in the target quantity and closure of phadis have been the fall out of the claimed crisis in the bidi industry. During the meeting of the Committee of Public Accounts on 25 th April 2005, a member expressed concern if the KL trade was proving unprofitable for the government then there was no use of doing this business; and the Principal Secretary(Forest Deptt.) responded to this unenthusiastically just by saying that from overall point of view the trade was not a loss-making one. We say ‘unenthusiastically’ because there was no attempt on the part of Forest Department to convince the committee about the fact that at almost zero investment, the government used to get more or less 25% of the total transaction value(in rupees) as net profit; but the instance itself indicates that the government may someday consider discontinuing the state trading of the produce if the situation deteriorates continuously. Whereas the nationalization is said to have substantially increased the average annual production as compared to that of the pre-nationalization years(vide Report of the Task Force, pp.v-vii),the current situation is that between 1998 to 2000, the annual target of KL production used to be 5 lakh quintals in the state, but since 2001 it has been reduced by 5% or more. However, at phadi level the reduction in target has been sometimes much more conspicuous. In some areas phadis have either been closed permanently, or procurement has been totally stopped there temporarily leaving the pluckers of the area in lurch. For instance, poor sales resulted in the temporary suspension of procurement in 4 Ranges of the Navarangpur KL Division in a recent year. While it is true that lack of sufficient quantity of good leaves in a particular area has made phadi running economically not viable there, thus leading to a closure of the concerned phadi; mismanagement is an open truth which has also played a significant role in some cases. For instance, in the Ranapur region(Nayagarh district) there used to be several phadis during the early nationalization years, but almost all of them were closed afterwards whereas large scale bidi making takes place in the Balia-Raimula area and the leaves for this purpose are collected mostly from the local area. Although it is a fact that the leaves of that locality are not of the quality and quantity required to sustain so many phadis, but why not one phadi particularly when so much bidi is being made there using the local leaves Bhasker Mohapatra and Maguni Pradhan, who respectively worked in the Raimula phadi as the munshi and labourer, recall that mismanagement was an important factor behind the closure of that phadi(per.comm..). And newspapers have published even photographs showing how carelessly leaves were stored in a phadi of the Ranapur area. Added to this is the lack of proper bush cutting operations. Does this not suggest that if some areas are proving not to be economically viable, then that is partly or wholly because of the mismanagement and/or corruption of the responsible officials When the uneven distribution of phadis creates problem for the pluckers, it can be well-imagined what would happen to them if the government totally closes procurement from their area by closing phadis. In that case either they would have to travel to greater distances in order to reach the next phadi of their area, which in turn would mean loss of persondays, not to speak of the physical pain and other complications; or else they would have to sell their leaves at a lower price to the illegal traders who take advantage of such situations. 20
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 and 12: 4.Livelihood dependency of KL pluck
Page 13 and 14: The cost of processing is compensat
Page 15 and 16: Chart-1 Forms of tobacco consumptio
Page 17 and 18: manufactured in coastal Orissa . M.
Page 19: One can further see from the two fo
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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