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The tendu tree (Diospyros melanoxylon) is found widely across central India. Leaves plucked from its shrubs are used to wrap bidis. About 550 billion pieces of bidi are sold every year in India. It was in the 1960s that governments realised the commercial value of tendu. Tendu leaves were sold unplucked to the contractors, who under reported the collections. Several states passed laws to nationalize the tendu trade in the 1960s and 1970s.The most crucial in this was Madhya Pradesh,, which produces 25 percent of the country's total harvest of tendu.

When MP government nationalized the tendu trade, the state was carvedup into1,826 collection units. Collection agents were appointed for each unit, responsible for getting the leaves plucked and delivered to the buyer. The agents and buyers had the same business interests and they misrepresented the collection and sale figures to cheat the government of royalty. This changed in 1980, when the state government started charging lump sums on rates based on 15year averages. Government revenues increased, but the collectors were still under paid. In 1984 the MP MFP (Trading & Development) Cooperative Federation Limited was formed. The forest department was entrusted with the collection. The first two years saw the tribals' earnings rise.

The system worked well for the first two years. The MFP Federation became a cash rich organization. Then populism took over. The wages paid to collectors began to be hiked before the elections. Although care was taken to appoint officers with good reputation to the MFP federation, corruption in the forest department ensured that the federation started loosing money. In 1988 a three tire cooperative structure for tendu trade was established to promote the people to take over the trade. In 1998, an executive order was passed in MP to implement the provisions of Panchayats (Extension to schedule areas) Act, 1996 (PESA). Under this the net profit of the tendu trade was to be returned as bonus to the collectors, the owners of MFP under PESA. Now 50 percent of the net profit goes directly to the gatherers, 30 percent to the primary cooperative societies (to be distributed in proportion to the leaves collected), and the remaining 20 percent is used for the purpose of regenerating forests.

 

Tendu collection in MP

Phase Total Period (yr.s) Collection per year
(million standard bags)
1965-1980 15 2-3
1981-1988 8 6-7
1989-1996 8 4

 

The nationalization of the tendu in MP was indeed a success in that it improved the economic lot of the primary gatherers. Orissa, by contrast does not pass on the profits from the tendu trade to the gatherers. Till date, the administrative control of the cooperative structure is with the forest department, be it the primary societies at the village level, the district level societies, or the state level society. In fact 18 years since its creation, the members of the state level coordinating body are nominated, not elected. The bad news for the tendu trade is that the bidi industry is declining as it is loosing popularity to gutka.

(Ref.: Down to earth; Feb. 28,2003;pp31 - 32)
 
 
 
 
Regional Centre For Development Cooperation