Odisha Government Hikes Kendu Leaf Prices, Announces Bonus for Collectors and Workers

In a major relief for lakhs of forest-dependent families, Odisha Chief Minister Mohan Charan Majhi has approved a hike in the procurement price of kendu leaves along with bonus and incentive payments for kendu leaf collectors, binders and seasonal staff.

Under the new decision, the price of a kerry (bundle of 20 kendu leaves) in the processed area has been increased by 10 paise, while the price of a phal (bundle of 40 leaves) has been raised by 20 paise. The state government will spend ₹10.78 crore to implement the revised rates.

The Chief Minister has also approved a 25% bonus for kendu leaf collectors. In addition, binders and seasonal staff will receive a 5% incentive. The government will spend ₹64 crore on these welfare measures, taking the total financial outlay for the package to ₹74.78 crore.

The decision is expected to benefit lakhs of people who depend on the kendu leaf trade for their livelihood across Odisha.

The latest announcement builds on the state’s earlier welfare initiatives for the kendu leaf sector. In October 2025, the Forest, Environment and Climate Change Department had approved ₹50 crore under the Mukhyamantri Kendu Patra Kalyan Fund to support more than nine lakh kendu leaf collectors across 22 districts.

The government said the kendu leaf trade has been facing financial pressure in recent years due to rising procurement and labour costs, declining production, and reduced availability of forest resources. These factors have led to a fall in trade surplus, affecting welfare spending for workers associated with the sector.

The Odisha Kendu Leaf Development Board (KLDB) uses revenue generated from the kendu leaf trade to implement various welfare schemes for collectors and other stakeholders. The latest package aims to improve their income and strengthen social security for families dependent on forest-based livelihoods.

The Odisha Government said the enhanced prices, bonus and incentives reflect its commitment to improving the economic well-being of kendu leaf workers and ensuring sustainable support for one of the state’s largest forest-based livelihood sectors.