Kendu Leaf GST Slashed: Odisha Tribals To Benefit, Politics Heats Up
Key Points
GST on kendu leaves reduced from 18% to 5%, benefiting 15 lakh tribal workers.
Odisha government announces Rs100 crore welfare package for kendu leaf staff.
BJD demands full GST exemption, BJP defends reform as progressive.
Bhubaneswar, Sept 4: In a major relief for Odisha’s tribal communities, the Narendra Modi government has reduced the Goods and Services Tax (GST) on kendu leaves from 18% to 5%. The decision, announced during the 56th GST Council meeting, has been widely welcomed across the state, especially by the nearly 15 lakh kendu leaf pluckers who depend on the trade for their livelihood.
Chief Minister Mohan Majhi hailed the move as “historic,” thanking Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the reform. He stated that the reduction will boost kendu leaf sales and improve earnings for tribal workers.
Union Education Minister Dharmendra Pradhan echoed the sentiment, saying Odisha will gain significantly from the new GST slabs.
The revised rate will officially come into effect from September 22. Leaders from kendu leaf worker unions in Balangir, Deogarh, Malkangiri and other districts expressed joy over the announcement, noting that the lower tax will lead to better prices and increased demand.
📱 Get Argus News App
✨However, the decision has also sparked political friction. The Opposition Biju Janata Dal (BJD) criticized the move as insufficient, demanding a complete GST exemption on kendu leaves. Senior BJD leader Debi Prasad Mishra argued that a 5% tax still burdens poor tribal workers and called for total removal of GST on forest produce.
BJP leaders, including Panchayati Raj Minister Rabi Nayak, defended the reform, stating it was a step toward economic justice.
In addition to the GST cut, the Odisha government has announced over Rs100 crore in welfare support for kendu leaf workers. This includes Rs 57 crore in bonuses and financial aid for seasonal staff. Workers will receive Rs 160 for slippers, Rs 200 for carry cloth, Rs 100 for caps, and Rs 700 for blankets and mosquito nets.
The move aligns with broader efforts to uplift forest-dependent communities and promote inclusive growth. As political debate continues, the kendu leaf workers of Odisha are hopeful that their long-standing struggles are finally being addressed.