Odisha Chief Minister Naveen Patnaik has renewed his demand to the Centre for withdrawal of 18 per cent goods and Services Tax (GST) on Kendu (Tendu leaves).

Patnaik, earlier in November 2022, had made a similar request to the Centre for the larger interest of 8 lakh families living on kendu leaf collection and binding.

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“Kendu (tendu) leaf is a minor forest produce (MFP) and is the financial backbone of about 8 lakh tendu leaf pluckers, binders, and seasonal workers in Odisha, who are mostly tribal and women and belong to the poorest of the poor of the society”, Patnaik wrote in a letter to the Union Finance Minister Nirmala Sitharaman.

“Tribal people collect the leaves as part of their rights defined under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Right) Act, 2006. They have the right to procure and sell these products,” Patnaik stated in the letter.

 “Implementation of GST (18%) on kendu (tendu) leaves is adversely affecting the kendu leaves trade, which, in turn, is affecting the livelihoods of kendu leaves pluckers, binders and seasonal workers and implementation of social security and welfare schemes for them,” Patnaik added.

It may be recalled here that the Odisha Government in last May had announced a financial assistance package of Rs 111 crore for the welfare of kendu leaf pluckers and other workers associated with it.

It was the second phase of assistance extended to the Kendu leaf pluckers. Earlier in April, 2022, the Government had provided them the financial assistance package of Rs 83 crore.

The Kendu leaf workers’ right to collect the leaves is defined under Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. Kendu leaves are mainly used to roll beedis.

Since 2014, the state government has made provision for giving bonus to the people engaged in kendu leaf trade, which comes from the profit made, said an official.

The state government has already implemented the Rs 2 lakh ex-gratia in case of the death or permanent disability of a kendu leaf worker.