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

The reasons of failure of this initiative were as under:
• The unit started working under the technical support of Kerala Dinesh Bidi(KDB), but
the support actually proved to be detrimental on various grounds. For instance, the
tobacco selected(and purchased) for bidi making was not of the kind preferred in Orissa,
and hence the product(Konark bidi) earned a bad name in the market. It was later tried to
replace this tobacco and give the product a new flavour, but it was difficult to convince
the customers.
• Internal factors like mismanagement, misappropriation, lack of sincerity, and lack of
effective marketing strategy also accounted for the failure.
• The cost of production was not competitive with that of the private units as, unlike the
latter, Konark Bidi was not supposed to do any kind of malpractices as regards the
payment of various dues and duties to the government.
• The sense(constructive) of ownership, which cultivates the qualities like sincerity, and
commitment among the authorities, and encourages to take risks with a good-will to save
the business, was often lacking at managerial level.
While the Konark Bidi experiment does not favour value addition of poor grade and/or unsold
stocks, through bidi making(at government level); it also reminds of the fact that the state trading
of kendu leaf has survived till date only because Orissa has a monopoly in the production and
marketing of processed leaves. If this monopoly were not there, then the state trading would have
collapsed probably years ago due to its internal weaknesses.
13. Conclusion:
The Kendu leaf trade in Orissa has been threatened partially by external factors like the decline
in the demand of bidi, and also partially by internal factors like corruption, mismanagement, and
lackadaisical attitude at various levels of production, processing, and marketing by the
government agencies. If internal factors are dealt with properly, then external factors do not seem
to be a major threat for the Orissa kendu leaves atleast for the coming few years as our leaves are
still considered to be of first quality in the country. However, for long term sustenance in the
commercial sector, alternative utilities of kendu leaves should be developed on a war footing so
that one or more alternate markets can be ensured.
The task force headed by Dr. Ramvir Singh submitted their report to the government in October
2000, in which they have analysed in detail the problems in the state trading of KL in Orissa, and
have suggested a comprehensive strategy for restructuring this trade. Highly valued for its
analysis and suggestions, this report however seems to be partially outdated in the backdrop of
the recent-most experiences. For instance, it recommended(#10.11) that the KL wing should be
headed by an officer not below the rank of Additional Principal Chief Conservator of Forests,
who should be assisted by two Chief Conservator of Forests, one for operations and one for sales
& vigilance. While the first part of this recommendation has been implemented 17 , the second part
(appointment of two CCF level officers) is not considered to be feasible on various grounds
17 In a recent (August) decision, a CCF rank officer now heads the KL wing.
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