Kendu Leaf Trade and the Fight for Tribal Rights: Odisha’s ‘Green Gold’ in Crisis

In the deep forests of Odisha, the humble kendu leaf is more than just a raw material for making bidis (indigenous cigarettes); it is a vital source of livelihood, culture, and identity for lakhs of tribal families. Revered locally as “green gold”, this minor forest produce (MFP) plays a major role in the economic sustenance of marginalized forest-dwelling communities. However, a clash between traditional rights and state regulations has put this crucial trade at a crossroads. The ongoing struggle for autonomy, dignity, and livelihood is not just a bureaucratic issue—it is a test of India’s commitment to social justice and tribal empowerment.

Kendu leaf (Diospyros melanoxylon) is primarily used as the wrapping leaf in the production of bidis. Odisha is one of the top producers of this leaf, accounting for approximately 20% of the national output. The trade provides seasonal employment to nearly 800,000 tribal workers in the state, including pluckers, binders, and temporary laborers. In many tribal households, income from kendu leaf collection constitutes up to 40% of the family’s annual earnings.

The collection season typically begins in April-May, and the leaves are processed in temporary centers called phadis. This activity brings in significant revenue not only to individual collectors but also to the state government, which controls the trade through the Odisha Forest Development Corporation (OFDC).

The root of the current conflict lies in two parallel legal frameworks:

1. The Forest Rights Act (FRA), 2006 – Grants Scheduled Tribes and Other Traditional Forest Dwellers the right to collect, use, and sell minor forest produce, including kendu leaves. It empowers Gram Sabhas to manage and protect forest resources.
2. Orissa Kendu Leaves (Control of Trade) Act, 1961 – Gives the state forest department complete control over the collection and trade of kendu leaves, including licensing, pricing, and procurement.

This contradiction has left tribal communities in a legal and operational limbo. While the FRA recognizes their autonomy over forest produce, the state’s bureaucratic control continues to block their ability to sell kendu leaves independently.

In April 2024, the tribal farmers of Boipariguda block in Koraput district made headlines when over 4,000 villagers from 100 Gram Sabhas collected around 6.2 lakh bundles of kendu leaves with the intention of selling them independently. Operating under the collective platform Baipariguda Gram Sabha Mahasangha, these communities bypassed government-appointed traders, aiming to sell at ₹4 per bundle in the open market—higher than the ₹3.20 offered by state agents.

However, their plan met a roadblock: the forest department refused to grant transit permits, effectively locking up the collected produce. With the onset of monsoon and lack of proper storage infrastructure, leaves worth over ₹34 lakh were at risk of rotting, marking both an economic and humanitarian crisis.

In 2013, Odisha began experimenting with deregulation in districts like Malkangiri and Nabarangpur. Initially, it seemed promising—Gram Sabhas were given rights to collect and sell kendu leaves, empowering them with greater economic control. However, the absence of oversight mechanisms led to exploitation by private traders. Many of these traders paid lower prices, offered no bonuses or health benefits, and left workers worse off than before.

In contrast, regions still under state control provide guaranteed prices, annual bonuses, and social security schemes. This paradox highlights the need for a balanced approach—neither complete state monopoly nor unregulated privatization can fully protect tribal interests.

The kendu leaf trade is not just about economics—it intersects deeply with social justice, migration, gender roles, and child rights.

• Distress Migration: Where Gram Sabhas have succeeded in organizing the trade (such as in parts of Koraput), there’s been a significant reduction in migration. More families are able to earn a living locally.
• Gender Empowerment: Women are at the center of kendu leaf collection and management. In many areas, they also manage phadis and local trade unions, increasing their financial independence.
• Child Labor Concerns: In districts where trade is unregulated, child participation in kendu leaf collection remains a serious issue, as families rely on every available hand during the peak season.

The Odisha government has made several efforts to support kendu leaf workers. In 2023, it announced a financial package worth ₹56 crore, covering bonuses, welfare measures, and incentives for over 800,000 workers. However, these schemes often do not reach independently working Gram Sabhas who operate outside state control.

Chief Minister Naveen Patnaik has also written to the Union Finance Ministry requesting the removal of the 18% GST on kendu leaves. He argued that this tax makes tribal produce less competitive and adds to the economic distress of marginalized communities.

To resolve the kendu leaf deadlock and ensure justice for Odisha’s tribal communities, the following measures are crucial:

1. Harmonization of Laws: State trade acts should be amended to align with the Forest Rights Act, giving real autonomy to Gram Sabhas.
2. Regulated Deregulation: Empower local communities to trade directly but within a regulated framework that ensures transparency, fair pricing, and protection from exploitation.
3. Infrastructure Support: Invest in storage, drying, and packaging infrastructure to prevent losses due to spoilage and weather.
4. Capacity Building: Train Gram Sabha members in trade negotiation, record-keeping, and marketing.
5. Ensure Accountability: Whether under state or Gram Sabha control, accountability mechanisms must protect workers’ rights, ensure timely payments, and avoid child labor.

The story of kendu leaves in Odisha reflects a broader question of who owns India’s forests—the people who have lived in them for generations, or the state that claims stewardship. It is also a test of India’s federal and constitutional values, particularly the right of tribal communities to dignified livelihoods and self-governance. As the battle over “green gold” continues, the need for inclusive, just, and effective forest governance becomes more urgent than ever.

• Drishti IAS: Kendu Leaf – Daily News Analysis
• Down To Earth: Odisha’s Kendu Leaf Trade Hangs in Balance
• Newslaundry: Gram Sabhas Harness Kendu Potential in Odisha
• The New Indian Express: Private Players Exploit Kendu Leaf Workers
• IndiaSpend: Koraput’s Gram Sabhas and Kendu Leaf
• Business Standard: ₹56 Crore Incentives for Kendu Leaf Workers
• Hindustan Times: Odisha CM Urges GST Removal on Kendu Leaf