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

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this has actually not been successfully ensured as smugglers have taken advantage of the closure. Unwanted rains sometimes result in the damage of the leaf quality of an entire area. Further, climatic changes and loss of KL growing areas to development projects, etc. also account for the reduction in quality. However, the KL wing cannot be allowed to get excuses for its negligence that affects the sale of leaves. The lackadaisical approach of the authorities is reflected in the fact that whereas the KLCC in 2004 advised the Additional P.C.C.F.(KL) to investigate the fire related damages, the minutes of the meeting for 2005 crop year do not even mention any follow up action in this regard. Similarly, the cost norm is approved every year; but the achievements corresponding to the same are not analysed in the following year. The Committee decided in 2005 that all efforts would be made to reduce the fixed costs further during the said year, but there was no mention to the achievements in this regard in the minutes of the meeting held in the following year(2006).If such a high level committee functions just for formality, then how can the agencies responsible for production and sale be monitored properly Sale is controlled from Bhubaneswar although from business point of view Sambalpur is actually the most feasible place for this purpose for all the stakeholders. It is said that to check corruption (manipulation by local traders), Sambalpur was not preferred; but an impartial enquiry would reveal that this decision has not proved very beneficial to the government’s (OFDC’s) marketing capability. A simple example is that to get purchase rights over phal leaves in the Khariar KL Division, the trader has to travel a long and uncomfortable distance to Bhubaneswar, that too without an guarantee that he would receive a proper and fair dealing in the matter. Would he be interested for this if he gets a better alternative in the neighbouring Chhattisgarh state There should be periodical review of decisions like this on the basis of sound statistical data so that it can be confirmed if the decision has actually met its objective. Media reports repeatedly allege that some field level officers are actually spending more time at Bhubaneswar as a result of which the field activities are being neglected, affecting the production. Sincere officers of old times also believe that their modern counterparts are having more facilities, but are less sincere and more opportunistic in attitude. Of course, this is not true for all the staff; but how many officers have achieved the kind of credit, which one DFO achieved in the Khariar Division in the 1990s by making the leaves of his Division better saleable Although this officer got transferred from Khariar in due course of time, his achievements are still proving highly beneficial for that Division. In fact, his achievement shows that much can be done at the level of production so as to ensure better sale prices for the leaves. The KL task force recommended that grading of leaves into various classes should directed by market requirements, and that OFDC should conduct periodical market surveys to ascertain what kind of quality composition market prefers. Of late, government has commissioned a market study on KL through Indian Institute of Forest Management, Bhopal. The results of this study are yet to come(June 2006).However, the recommendation of the task force should also be extended to the nature of lots in terms of their volume/weight. Because, some bidi manufacturers in and outside Orissa prefer our processed lots, but they are not comfortable with the limitations of the sales procedures. For instance, each bag contains 12 bundles each of 5 kg weight; but some 37
manufacturers prefer bundles of lesser weight (in other words, lesser leaves) as they don’t want to take risks of misappropriation of the costly leaves by the bidi rollers who receive such bundles from them. Some people also want flexibility for some kind of retail sale because they are not in a position to purchase at a time the minimum number of bags/lots fixed by OFDC. Limitations of this kind are said to be one of the factors, which are responsible for little or no interest of the traders, and/or bidi manufacturers of many parts of the country (like northern states) in purchasing processed lots from Orissa. Of course, the issue of the weight of the bundles does not seem to have any importance so far the overall sales are concerned, because purchasers keen on this issue are very marginal in number. Still, this can be taken just as an example the different kinds of requirement in the market. 9.1..4: Ensuring a market-friendly pricing mechanism: The current situation demands that every care should be taken at all levels of production and marketing so that our sale prices remain market-friendly without any net loss. This can be done through an effective check-and-balance approach. For instance, the following chart(#20) indicates that there has been a substantial increase in the establishment cost during the last few years: Chart-20 Growing establishment cost in KL operations Est. cost in Rs./quintal 600 500 400 300 200 100 0 478 449 347 372 2003-04 2004-05 2005-06 2006-07 Year (based on approved cost norm statistics as provided in the KLCC proceedings of the corresponding crop years) Whereas the purchase price(per keri) of KL has increased only by 2.38% between 2003 and 2006, the establishment cost has increased by more than 37% during the same time. This is certainly a matter of concern, which needs proper attention 12 . 12 And we have been told recently that steps are being taken in this direction though there is no expectation for a substantial decrease in the establishment cost in the recent future. 38
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 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: In Kadamdihi phadi under Kadamdihi
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.

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

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