Bhubaneswar: Odisha government Tuesday announced bonus for over 8 lakh kendu leaf pluckers in the state, but the amount was reduced to 50 per cent from the 100 per cent given last year.
At a meeting of the Kendu Leaf Development Board chaired by Chief Minister Naveen Patnaik here, Rs 222 crore bonus was announced.
However, the ratio of the bonus has been reduced to 50 per cent from 100 per cent last year.
“The ratio of the bonus was less this time because of the slowdown in kendu leaf trade and GST on the leaf,” Forest and Environment Minister Bikram Keshari Arukha said after the meeting.
He said the state government will urge the GST Council to withdraw the tax on kendu leaf as the beneficiaries are mostly tribals belonging to the weaker sections of the society.
Last year, the state government had requested the then Union finance minister Arun Jaitley to reduce GST on kendu leaves from 18 per cent to 5 per cent.
There are 8,52,000 kendu leaf pluckers, 20,650 binding workers and 17,860 casual workers engaged in the trade across the state, officials said.
The minister said the socio-economic development of the tribal and economically-weaker sections is linked with the kendu leaf trade.
“The profits earned from the trade are spent on the development of the tribal community. Kendu leaf pluckers are treated as partners in the trade,” Arukha said.
Kendu leaf workers in the state enjoy benefits of state-run welfare programmes, including provision of uniforms and slippers for pluckers, mosquito nets and blankets for workers, compensation on death and permanent disability and scholarships for the children of the workers.
(PTI)
