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

of this kind has been done in many other departments/organizations of the government, and
hence implementing this may not be an extraordinary step. This would also help avoid the
unnecessary delay and other complexities in communications between the two organizations. But
before that it should be considered if a proportionate increase in the commission of OFDC, and
also a more coordinated effort of the two organizations would be more feasible than making
responsible any single organization. Because, the system of two organizations devoted to two
different (inter-dependant) objectives is ideally supposed to be very useful. The question is, if we
have been efficient enough to successfully harness this potentiality at the production and
marketing levels. The performances so far suggests that the answer is not totally negative; but we
should try to make it positive to the maximum possible extent. What is our strength should not
become a handicap.
The present situation in the market does not favour a disorganized procurement and sale
arrangement, so denationalization is not advisable at present keeping in view the interest of
thousands of poor pluckers as well as the fame of the Orissa leaves. The experience of semiprivatization
through advance sale system has also been not encouraging. What is therefore
advisable is to make the procurement and sale systems more effective instead of escaping the
social responsibility of welfare state.
However, the nationalization policy should not ignore the rights of the pluckers in areas where
departmental procurement has been stopped showing commercial reasons. Since the policy does
not allow sale of kendu leaves to any body other than the authorized agency, the only option
before these people to sell their leaves to private traders becomes illegal. This is an extremely
contradictory situation where the government does not procure from the pluckers, and at the
same time does not allow them to avail the services of private traders. There should be specific
provisions for such areas, and also for areas inside Protected Areas to address the genuine
livelihood needs of the people.
12.The Konark Bidi experiment: lessons learnt:
M.C.Patel & Co., one of the important bidi manufacturers of Sambalpur region, earlier used to be
lease holders of kendu leaf. In 1952, they had a considerable stock of unsold leaves which
prompted them to go for bidi manufacturing so that this stock could be profitably used. Since
then they have successfully established themselves as a bidi manufacturer.
The initiative of the Orissa Forest Corporation to open a bidi factory at Angul had more or less a
similar kind of reason behind it. The average quality of the leaves of the Angul region is not so
good(these are said to be of grade IV quality).In order to make a more profitable use of the same,
the Konark Bidi Industry was established at Angul. Like other bidi units, it also manufactured
bidi on contract basis through commissioned agents. The production started in 1977-78 with an
annual figure of 74,35,800 bidis which increased to 1,62,38,325 bidis in the next year. However,
it was soon realized that Konark Bidi was going to be a loss-making unit with almost no chance
of financial survival. In 1994-95, only 1,54,600 bidis were manufactured, and the unit was closed
permanently in 1996 16 .
16 The statistics relating to the production of Konark Bidi was taken, by courtesy Sri Muralidhar Pal & Sri Bijay
Kumar Pani, from the relevant statement prepared by the Corporation.
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