The Chief Minister's Office of Odisha announced on Tuesday, 14 July 2026, that the state government under Chief Minister Mohan Charan Majhi has approved a welfare package worth Rs 74.78 crore for kendu leaf pluckers, binders, and seasonal staff engaged in the state's minor forest produce trade. The announcement states that the package includes a 25 per cent bonus for kendu leaf pluckers (tholali), a 5 per cent incentive for binders (bandhali) and seasonal staff (sijinal staff), and a revision in the procurement price of kendu leaves. The government described the decision as a step toward 'financial empowerment and livelihood security' of these workers.

Context

Kendu leaves — the primary raw material for the bidi industry — are one of Odisha's most significant minor forest produce. Hundreds of thousands of workers, concentrated in the state's Scheduled Areas and tribal districts, depend on the annual kendu leaf collection season for a substantial share of their household income. The trade is governed by the Kendu Leaves (Control of Trade) Act, 1961, which established a state monopoly over procurement and created a formal welfare framework for collection workers.

Policy Backdrop

Odisha has periodically revised kendu leaf procurement prices and announced bonus payments to pluckers since the 1990s, using these instruments to stabilise forest-dependent livelihoods against pressures such as shifting cultivation patterns and seasonal migration. The state's approach broadly aligns with national frameworks for the marketing of minor forest produce, while operating through its own procurement and trade arrangements. The BJP-led government that took office under CM Majhi in June 2024 has positioned tribal and forest-worker welfare as a policy priority.

Stakeholders and Impact

The primary beneficiaries are kendu leaf pluckers, who perform the most labour-intensive work during the collection season and will receive the larger 25 per cent bonus. Binders and seasonal contractual staff, whose roles support processing and storage, are covered under the 5 per cent incentive component. For households in tribal and forest-fringe communities where kendu leaf income forms a critical seasonal buffer, the price revision and bonus together represent a direct increase in take-home earnings. The Rs 74.78 crore outlay signals a significant commitment of state resources to this segment of the informal forest economy.

What's Next

Attention will now turn to the disbursement timeline for the announced bonuses and incentives, and whether the revised procurement price will be notified through a formal policy circular before the current collection season closes. Any further revisions to kendu leaf policy are also likely to feature in the next state budget cycle. The scale of the package and its direct reach to tribal forest workers could set a benchmark for how the Majhi government frames its welfare commitments ahead of future electoral cycles in Odisha.