Decline of Madhya Pradesh tendu leaf industry continues

The tendu leaf (diospyros melonoxylon) trade in Madhya Pradesh, which the state has a monopoly of, has not been doing well despite the tendu-patta policy announced in 2004.

A hike in the offer price for one standard bag from Rs 400 to Rs 450 did not help the business that feeds the Rs 235-crore beedi industry.

The number of tendu leaf pluckers and beedi-makers (indirect employees of the industry) is also dwindling. Tendu leaf pluckers reduced from 2.13 million during 1989 to 795,000 in 2004. The current figures are not known.

However, this year the state government has claimed it collected 2.3 million standard sacks against the 1.79 million standard sacks collected last year but data reveal that the collection is still falling short of the target by 400,000 standard bags.

This indicates the trade has been declining since 1989, when the state had collected 4.35 million standard sacks that fetched a net profit of Rs 290.45 crore to the state kitty.

Till last year, the Madhya Pradesh State Minor Forest Produce (Trading & Development) Co-operative Federation Ltd clocked a profit of Rs 53.55 crore.

Tendu leaf is considered the most suitable wrapper for beedis by the industry.

It has anti-asthmatic properties. Though leaves of other plants like dhak (butea monosperma) and sal (shorea robusta) also find use as beedi wrappers in different parts of the country the tendu leaves are considered superior.

Through an Act in 1964, the state government had taken over the trade in tendu leaves. In order to give more benefits to forest dwellers in collection and trade of tendu leaves, the Madhya Pradesh State Minor Forest Produce (Trading & Development) Co-operative Federation Ltd was formed in 1984 as the nodal agency.

"Incentives and bonus and daily wage are comparatively low in tendu leave collection and the beedi industry. As a result, labourers have migrated from the state. The government made no effort to make the business profitable for them and now it is too late. The government must dilute its stake in the business," a beedi industry source told Business Standard. Stringent norms for the beedi industry have also forced a number of small scale units to shut their shops.

"This year the tendu leaves' sale, through auction, will fetch a maximum price of Rs 1,530 per standard bag and the target is to distribute Rs 90 crore as bonus to tendu leaf pluckers," said a government spokesperson.

But increasing tax rates, entry of outside beedi-makers and poor protection for the interest of labourers do not auger well for the industry.