Odisha Chief Minister Naveen Patnaik has urged Nirmala Sitharaman to withdraw 18 per cent GST from Kendu leaves in the interest of the livelihood of lakhs of Kendu leaf pluckers. On Saturday, Naveen Patnaik wrote to Union Finance Minister Nirmala Sitharaman saying that 18 per cent GST on Kendu leaves is affecting the trade and livelihood of Kendu leaf puckers, binders, and seasonal workers of Odisha.
“Imposition of GST (18 per cent) on Kendu (Tendu) leaves is adversely affecting the Kendu leaves trade. This in turn affects the livelihoods of Kendu leaves, pluckers, binders & seasonal workers and implementation of social security and welfare schemes for them,” the letter read.
Patnaik said that Kendu leaves, a minor forest produce (MFP) is the financial backbone of about 8 lakh Kendu leaf pluckers, binders, and seasonal workers of Odisha and mostly belong to the tribal community and poorest of the poor of society.
He said that the tribal people collect the leaves as part of their right defined under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. They have the right to procure and sell these products.
In the interest of the livelihoods of the Kendu leaves-dependent community it is urged to withdraw the imposition of GST on Kendu leaves for the greater interest of Odisha, the letter added.
This letter comes three days after the Odisha government announced a special package deal for Kendu leaf pluckers and other workers. Under the special package, Rs 1,000 will be given to each Kendu leaf plucker and Rs 1,500 to each season-wise worker and ‘binder’ in the first phase. All Kendu leaf pluckers and workers will be covered under Biju Swasthya Kalyan Yojana (BSKY).
During the announcement, the Chief Minister said, “I had earlier requested the Central Government to remove it(Kendu leaf GST) and I am again raising the demand for complete abolition of GST.”