Tendu Patta/ Leaves (TL) is one of the most important sources of income for tribal communities and rural people living near forests in central India. It can provide upto 45 million person days per year. Apart from its importance in terms of employment generated, it has been contributing substantially to the state exchequers of states in Central India.

In undivided MP, there are nearly 25 lakh TL families who benefit from its collection and trade. After division, Chhatisgarh has around 10 lakh TL pluckers.

TL from Bastar is considered the best and thereafter comes leaves from Raipur, Bilaspur and Raigarh. Leaves from rest of the place are inferior to these.

Bidi Rolling

Bidi manufacturing started in MP at Jabalpur in 1906. It is a source of subsidiary occupation and supplementary income to Lakhs of poor rural folk. In certain tracts of undivided state, it provides employment to nearly 60 percent of the rural population. Obviously, bidi industry has a vital role in rural welfare and in promoting rural economy. About 75 percent of Tendu leaf production of the state is consumed within the state for manufacture of bidis.

However, a difficult situation has arisen after division of state. Whereas Chhatisgarh produces nearly same amount of TL as that of MP, it does not have many bidi manufacturing facilities. As per data available (of 1991), the present Chhatisgarh had only 0.04 % (3393 out of 77,56,042 units) of the total bidi manufacturing facilities. Now Chhatisgarh aspires to have the manufacturing units in the state that will definitely affect rural employment opportunities in MP.

As per traders, Bidi trade has declined 40% over last 10 – 12 years, where as another information says that Bidis have become a fashionable item in some western countries, notably USA.

Production and Pricing

Table: Production of KL across district unions of Chhatisgarh

Source: MP MFP Federation and Chhatisgarh MFP Federation

Federation before start of the season announces collection rates. Before co-operatisation, prices remained low. This is clear as prices were raised from Rs. 85 to 150 in 1989, the year of co-operatisation. Prices have been raised every 2-3 years since 1989. The price paid for plucking has been raised to Rs. 450 in collection season 2001 in Chhatisgarh (Rs. 400 in MP).

As per provisions, TL collected from private land is supposed to get Rs. 20/ SB more then the above price but for that tendu tree growers need to register themselves with the forest department. Practically no such cases were found during our survey. Many primary collectors in the villages of Sarguja are not even aware about the rule. Again it’s a very difficult job to get the lands registered in revenue department

The figure below, average sale realisations have consistently risen apart from two exceptions (1990 and 2000). The sale price determined by the tender/auction varies between district unions and units. Currently they range between Rs. 800 to Rs. 1600 depending on quality. It is also clear from the annexure that whenever the prices have hit their peak, the collectors’ share in the revenue has hit the bottom, even after payment of bonus. There is an exceptional case in 1989, in the first year of co-operatisation when the primary collectors received a huge amount as bonus.

Figure : Collection Wages vs Avg. Sale Price

Trade Aspects

TL was the first produce to be nationalised in the state and has an elaborate system of collection and trading. The undivided state was divided into TL units on basis of production, numbering 972 in 1965, the first year of nationalisation; and were reorganised into 1826 in 1984. A purchase and agent system was in force till 1979. In 1980 this was replaced by lump sum sale that resulted in increase of production and royalty money. In 1984, MFP (Trade and Development) Co-operative Federation Ltd. was established to deal with nationalised NTFP. The federation however became fully operational in 1989. Details about the federation and its operation are dealt with in a later section.

There has been a change in nature of procurement operations in some districts after the division of the state. Dantewada was the first district in Chhatisgarh where advance sell of TL was experimented in 2001 and later on two more districts have been added. Though this is an experiment and the federation is trying to see the efficacy and achievement of the changed system, the unofficial position is that the advance sale is being tried in the Naxal infested areas where officials of forest department refuse to operate. The other inherent advantage of such a system is that responsibility of the FD reduces substantially.

In this system, the party winning tender procures TL from primary societies directly after payment of collection charges. It is also the responsibility of the party for any processing and storage of leaves. The forest department only takes on the role of a regulator and facilitator. It is also assumed that profitability of the department would increase by such a system. There is also some amount of advantage that the trader gets in such a system, as some traders who were earlier not taking part in the auction process are back to bid in this kind of a system. Though it is early and at the same time difficult to prove, the advantage to the traders can be 2 fold – 1. Traders expect the system to be comparatively hassle free then the previous one, 2. They can make underpayment to pluckers and indulge in procurement of leafs through illegal means that will be difficult to detect since they would have licence for transport of legally procured leafs.

Out of the total fund required for leaf procurement federation borrows 75% of requisite amount from banks at prime lending rates and it itself invests rest 25% margin money. Federation sells the leaves by process of auction or tender. Most of the traders who purchase Tendu leaf from federation are commission agents. They attend auction/ apply for tender to purchase from federation. Once bought, the leaves are transported from federation godown to mandi area in towns. Traders also do grading at this stage and store it till they find right buyer. They further sell TL to Bidi industries of West Bengal, and South India. The commission agents pay a tax of 25.4 % over and above the bid price that includes income tax. There might be one or two levels at this stage, depending on where bidi manufacturers are based. On an average, it takes upto 2 years to completely dispose of a years’ stock.

There is one more aspect to the TL trade. Government till recently was earning significant revenues from the trade. Though in the first decade, the net revenue to the government hovered between Rs. 7 to 20 crores, in the 90s, the net revenue touched to the level of more then 100 crores. The highest revenue was in the year 1989, when net revenue touched 290 crores. Significantly, the net revenues took a sharp dip after that year not to recover to those levels. The sales realisations also took a sharp dip after the first year of co-operatisation only to recover to the same levels after 10 years.

It is probable that requirement of tendu leaves for bidi manufacture within state and in other parts of the country has stabilised. Since all states where the leave is available have organised collection and disposal of leaves, it is felt that not much could be expected over and above present level of production and net revenue to the state (Prasad and Bhatnagar, 1991). Of course all this has changed after change in structure of incentive wages in 1998. And with the changed context, all the money is now supposed to flow to people.

Miscellaneous

Incentive Wages

In the first year of co-operatisation, there was additional revenue of Rs. 290.04 crores, of which Rs. 150 crores was distributed in four instalments through accounts of pluckers opened in local branches of Cooperative Banks or credit societies as per recommendations of Dillip Singh Bhuria Committee. This payment was discontinued from 1990 season and was again started from 1995. For 1995 to 1997 seasons, nearly 20% of net income was paid as incentive wages.

As a consequence of 73rd Amendment to Constitution, State Government decided to pass on all the net income from NTFP trade to societies (described later). The incentive wages are only distributed to cardholders. The incentive wages for a particular procurement year is distributed 2-3 years late, as that is the time it takes to dispose off TL collected and hence audit to get completed.

The distribution of incentive wages for 1999 season is under progress in MP, while Chhatisgarh has started distribution of 2000 season. The later is distributing Rs. 56 Crores for the year 1999 and 2000.

Pluckers’ Welfare

A group insurance scheme for Tendu leaves pluckers was launched in 1991. All tendu leave pluckers between 18 and 60 years of age (about 24 lakh) have been insured free of cost under this scheme against deaths and accidents. The chairman, managers and collection agents have also been covered in the scheme. Life Insurance Corporation of India runs the scheme. Following insurance amounts are paid under this scheme. The federation spent nearly Rs. 3 crores rupees annually in undivided state for payment of premium.

a. In case of death of any plucker covered under this scheme by natural cause, his nominee is paid Rs. 3500/-.
b. In case of disability due to accident, the plucker is paid an amount of Rs. 12500/-
c. In case of death or permanent disability caused due to accident related to tendu leaves, the amount of insurance is Rs. 25000/-.

Sunstroke, snakebite, beer attacks are some of the dangers that collectors face during collection of tendu leaves. Though collectors are aware about existing insurance policies, getting money in case of death is very difficult. They generally take the help of panchayat members to help in the process.

Table: Details of Insurance Claim Settlements