Green gold crisis: The barriers disrupting Kendu leaf trade in Odisha

In Baipariguda block of Odisha’s Koraput district, eight gram sabhas await an official notification from the state government that will allow them to independently trade kendu leaves, a key source of seasonal income in the region. Kendu leaves, often referred to as green gold, are used primarily in the beedi industry, and are an important part of forest-based livelihoods in the region.    

Recognised as a minor forest produce under the Forest Rights Act (FRA), 2006, kendu leaves fall within the rights granted to forest-dwelling communities. This means that the communities can collect, use, and manage forest produce such as kendu leaves.      

A 2012 amendment to the FRA clarified that gram sabhas and their committees can issue transit permits and manage the storage, processing, and sale of kendu leaves. This provision was meant to reduce delays and remove the need for additional state-level permissions. In practice, however, access to these rights still depends on further state approvals. In Odisha, forest-dwelling communities need a deregulation letter from the state government to bypass traditional auctions and sell the leaves directly to traders. Without this approval, communities remain dependent on state-led systems, which limits their autonomy and earnings.

Once they receive the approval letter, gram sabhas directly negotiate with private buyers through open bidding, allowing people to receive payments without intermediaries, often at rates higher than the minimum support price fixed by the state.

However, this season, no traders have come to the villages, as buying without a deregulation notice often leads to the leaves being seized by the government. People have been left with no choice but to sell them for a very low price. The sale of kendu leaves is significant to the livelihoods of the region, particularly for women who are primarily responsible for collecting the leaves.

Last year, despite completing all formalities and holding a meeting with government officials, the deregulation letter was not issued. The harvested kendu leaves, worth approximately INR 36 lakh, were damaged by rain, resulting in major losses.

Bidyut Mohanty works on community forest rights in Odisha.

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