The Chief Minister's Office of Odisha announced on Monday, 13 July 2026 that Chief Minister Mohan Charan Majhi has approved a bonus, incentive payments, and a revision in procurement rates for lakhs of kendu leaf pluckers, binders, and seasonal staff across the state. The decision will entail a total government expenditure of Rs 74.78 crore.

What Was Announced

Under the approved package, kendu leaf pluckers will receive a 25 per cent bonus on their earnings, while binders (bandhali) and seasonal staff (sijinal staff) will be entitled to a 5 per cent incentive amount. On the procurement price side, the rate per bundle of 20 kendu leaves (keri) in process areas has been raised by 10 paise, and the rate per bundle of 40 leaves (phala) has been increased by 20 paise. The Chief Minister's Office stated the revisions were made on the direct instructions of CM Majhi.

Context

Odisha nationalised its kendu leaf trade in the 1970s, creating a dedicated state structure to regulate collection, processing, and welfare payments to workers. Kendu leaves — used in the manufacture of bidis — are among the most economically significant minor forest produce in eastern India, providing critical seasonal income to tribal and rural households across the state.

The state's forest-dependent communities, particularly in tribal districts, rely on the annual kendu leaf collection season as one of their primary sources of cash income. Welfare measures such as bonuses and price revisions are therefore closely watched by worker groups and have historically been a point of periodic labour agitation.

Policy Backdrop

Successive Odisha governments have periodically revised kendu leaf procurement prices and announced bonuses to sustain pluckers' participation and address worker grievances. These steps form part of a broader state policy of supporting forest-dependent communities alongside other minor forest produce schemes and rural wage employment programmes.

The current revision continues that pattern, with the Majhi government framing the move explicitly as a welfare measure for 'lakhs of kendu leaf pluckers, binders, and seasonal staff' — a constituency that spans multiple tribal and forest-fringe districts of Odisha.

Stakeholders and Impact

The primary beneficiaries are the hundreds of thousands of kendu leaf pluckers — a workforce that is predominantly tribal and rural, and includes a significant proportion of women. Binders and seasonal contractual staff who support the collection and processing operations will also benefit from the 5 per cent incentive.

The total approved outlay of Rs 74.78 crore signals the scale of the workforce involved and underlines the economic weight of the kendu leaf sector within Odisha's minor forest produce economy.

What's Next

Attention will now shift to the actual disbursement of the approved funds, which will need to be executed ahead of or during the next collection season. Follow-up administrative orders from the Forest Department or relevant state agencies will determine the timeline and modalities of payment to workers on the ground.