86
R. Kumar and P. Saikia
The GST on the leaf is set at 18% with 9% central GST (CGST) and 9% state GST
(SGST). Central tax on the leaf was earlier nil. Earlier, only Value added tax (VAT)
or sales tax was levied on NTFPs like kendu leaves. But VAT wasn’t applied everywhere and it varied from state to state. In Jharkhand, the state had levied 14.4%
VAT on tendu, however, in Odisha, the state levied a 5% VAT and 2% forest tax
on tendu and in Rajasthan, this figure stood at 5.5% VAT. In the instances, the new
SGST is more than the earlier levied taxes. In fact, the total increase in the tax on
tendu leaves has skyrocketed, increasing by around 200% in places like Rajasthan,
which is a cause of concern for many. Now, as the tax is high, the traders who get the
tender from state corporations to collect tendu leaves will pay even less to the tribal
collecting the leaves. The remuneration earned is very paltry compared to the hard
labour of 14–15 h a day and the workers face acute occupational hazards. Further, it
seen that the majority of them want to shift from their present occupations and move
to safer alternative means of livelihood. At present most of the tribal work for the
tobacco industry as they have no choice due to lack of skills or other employment
opportunities. As a result, they are always perennially caught in a cycle of poverty,
misery and debt. Paradoxically, kendu leaves plucking being associated with the
rural economy and revenue generation activity for the state, on one hand, and its
use in wrapping bidi only on the other, there have been discussions among tobacco
activists and state policymakers on the matter of reducing tobacco consumption in the
country by diverting them towards other alternative livelihood sources. Even some
of the state governments prompted to extract kendu leaves for both state and individual benefits through various means (such as insurance and educational fellowships)
to retain the right and livelihood of the local people over minor forest produces as
envisaged in both Acts mentioned above. However, the discourse still questions the
feasibility of extending employment opportunities given the current failure of the
government in delivery the existing pro-poor services and employment generation
schemes. Thus this paper shed lights on how the livelihood framework, associated
with kendu leave collection, entertained with the right of the local people envisaged
in various Acts continue to become a detrimental factor toward shifting from kendu
leave occupation to others in the line of reducing the burden of bidi consumption
in the country substantiating through data collected from five Indian states- Madhya Pradesh, Odisha, Chhattisgarh, Jharkhand and Maharashtra. Despite immense
potential of revenue generation and socio-economic upliftment of rural population
residing in forest fringe areas limited efforts have been taken up to systematically
assess kendu leaf production and impact of silvicultural practices therein (Kerketta
et al. 2018).
5.5 Herbal and Medicine Industry
Herbal drug plays a vital role in rural areas, and various locally produced drugs are
still being used as household remedies for different ailments (Qureshi and Ghufran
2005). Worldwide it is observed that more than 35,000 plant species are being used
R. Kumar and P. Saikia
The GST on the leaf is set at 18% with 9% central GST (CGST) and 9% state GST
(SGST). Central tax on the leaf was earlier nil. Earlier, only Value added tax (VAT)
or sales tax was levied on NTFPs like kendu leaves. But VAT wasn’t applied everywhere and it varied from state to state. In Jharkhand, the state had levied 14.4%
VAT on tendu, however, in Odisha, the state levied a 5% VAT and 2% forest tax
on tendu and in Rajasthan, this figure stood at 5.5% VAT. In the instances, the new
SGST is more than the earlier levied taxes. In fact, the total increase in the tax on
tendu leaves has skyrocketed, increasing by around 200% in places like Rajasthan,
which is a cause of concern for many. Now, as the tax is high, the traders who get the
tender from state corporations to collect tendu leaves will pay even less to the tribal
collecting the leaves. The remuneration earned is very paltry compared to the hard
labour of 14–15 h a day and the workers face acute occupational hazards. Further, it
seen that the majority of them want to shift from their present occupations and move
to safer alternative means of livelihood. At present most of the tribal work for the
tobacco industry as they have no choice due to lack of skills or other employment
opportunities. As a result, they are always perennially caught in a cycle of poverty,
misery and debt. Paradoxically, kendu leaves plucking being associated with the
rural economy and revenue generation activity for the state, on one hand, and its
use in wrapping bidi only on the other, there have been discussions among tobacco
activists and state policymakers on the matter of reducing tobacco consumption in the
country by diverting them towards other alternative livelihood sources. Even some
of the state governments prompted to extract kendu leaves for both state and individual benefits through various means (such as insurance and educational fellowships)
to retain the right and livelihood of the local people over minor forest produces as
envisaged in both Acts mentioned above. However, the discourse still questions the
feasibility of extending employment opportunities given the current failure of the
government in delivery the existing pro-poor services and employment generation
schemes. Thus this paper shed lights on how the livelihood framework, associated
with kendu leave collection, entertained with the right of the local people envisaged
in various Acts continue to become a detrimental factor toward shifting from kendu
leave occupation to others in the line of reducing the burden of bidi consumption
in the country substantiating through data collected from five Indian states- Madhya Pradesh, Odisha, Chhattisgarh, Jharkhand and Maharashtra. Despite immense
potential of revenue generation and socio-economic upliftment of rural population
residing in forest fringe areas limited efforts have been taken up to systematically
assess kendu leaf production and impact of silvicultural practices therein (Kerketta
et al. 2018).
5.5 Herbal and Medicine Industry
Herbal drug plays a vital role in rural areas, and various locally produced drugs are
still being used as household remedies for different ailments (Qureshi and Ghufran
2005). Worldwide it is observed that more than 35,000 plant species are being used