Tendu Leaves and Tribal Income: Gadchiroli’s Forest-Based Economy

thenewsdirt
May 5
6 min read

In Gadchiroli, where forest land dominates the landscape, a single forest product carries significant economic weight. Within the tribal-majority region of Vidarbha, tendu leaves shape annual income for thousands, sustain livelihoods during dry agricultural months, and occupy a central space in debates around forest governance and taxation.

The collection and trade of these leaves is not a small-scale activity. It is one of the largest non-timber forest product operations in the state, functioning at the intersection of community rights, environmental management, and state regulation.

A Forest Product Driving the District’s Economy

Covering 14,412 square kilometres, Gadchiroli has over 75% of its area under forest cover. The local economy is closely tied to these forests, with non-timber forest products (NTFPs) serving as the main source of seasonal income.

Among these, tendu leaves, harvested from the Diospyros melanoxylon tree, stand out. These leaves are used as wrappers for beedis, traditional Indian cigarettes, and the trade they support accounts for a major portion of Gadchiroli’s economic activity.

In 2017, tendu leaves generated ₹400 crore (£320 million) in the district, a figure that marked a sharp increase from prior years.

This increase was driven partly by a national shortage that pushed up the price of a standard bag containing 50,000 leaves. What was once priced at ₹4,000 rose to ₹12,000 in the open market. The district emerged as the single largest contributor to Maharashtra’s tendu economy, accounting for 70% of the state’s overall trade.

The structure of this trade is organised and regulated, with a fixed breakdown of the income generated.

Royalty payments brought in ₹300 crore (£240 million), benefitting both the state and the local communities through designated funds. Labour charges paid directly to collectors amounted to ₹50 crore (£40 million), while transport costs added another ₹20 crore (£16 million), enabling the movement of leaves from the forests to markets and processing centres.

Although specific data for 2025 remains unavailable, the pattern established in previous years continues to underline the trade’s importance. In neighbouring Chhattisgarh, tendu leaf revenue reached ₹942.12 crore (£750 million) in 2024, showing that the market remains robust.

Tendu leaves are part of a nationalised trade structure, with most state governments managing pricing and procurement, which ensures consistent income but also subjects the trade to variable market dynamics.

Outside of NTFPs, Gadchiroli has limited industry. The paper mill in Ashti and the pulp factory in Desaiganj are among the very few industrial operations. The region's agricultural output centres on paddy cultivation, and rice mills handle this production.

With such a narrow base of industrial and agricultural activity, the tendu trade fills a vital gap, helping to distribute wealth seasonally and locally, particularly among communities with few alternative sources of employment. In this setting, the leaf becomes a source of sustenance and an essential economic tool.

Seasonal Work and Community Dependence

The collection season for tendu leaves occurs during April and May, a period when agricultural activities are minimal due to weather conditions.

For many tribal families, this seasonal shift to forest-based work creates a structured source of income.

Labour-intensive by design, the collection process involves entering the forest, carefully plucking the leaves, and bundling them into standard quantities.

In 2017, this seasonal labour injected ₹50 crore directly into rural hands, acting as a financial buffer at a time when work in the fields was limited.

Estimates suggest that millions across central India engage in similar work, but Gadchiroli holds a particularly prominent role due to its forest cover and established tendu trade mechanisms.

In a district marked by widespread poverty and limited formal employment, the tendu leaf collection becomes one of the most accessible livelihood options.

Payments earned during this period are often directed towards essentials such as food, clothing, and children’s education.

Beyond the leaves, the Diospyros melanoxylon tree also produces fruit, which collectors have started to monetise in small but emerging markets.

A quarter-kilogram of pulp fetches ₹30 (£0.24), and some families have begun producing juice, jam, and ice cream using this fruit. These ventures are in the early stages and have not yet scaled to broader markets, but they indicate the economic versatility of the tendu tree.

The labour required to harvest the leaves remains physically demanding.

Collectors work under high temperatures and often travel long distances within forest areas to access suitable trees. The manual sorting and bundling of the leaves require precision, as market standards remain stringent.

Despite the harsh conditions, the work is welcomed each year due to the income it guarantees, offering a predictable short-term occupation that aligns with the agrarian calendar.

Community-Led Trade and Regulatory Shifts

Historically, the tendu trade in Gadchiroli operated under a contractor model, where external agents would oversee procurement and sale.

This changed following the implementation of the Forest Rights Act (FRA) and the Panchayats (Extension to Scheduled Areas) Act (PESA), which provided Gram Sabhas with decision-making power over forest produce.

By 2017, 950 Gram Sabhas across Gadchiroli managed tendu auctions independently, while another 170 operated under a joint model with the Forest Department.

A significant development came in the form of a grassroots-led commercial shift in 2017, when 48 villages collectively bypassed the contractor network. These communities sold their harvest directly to beedi companies, a move that eliminated intermediary profit-taking and retained a higher share of earnings within the villages.

This move was widely referred to as the “tendu rebellion” and marked a turning point in local economic autonomy. The Maharashtra government’s 2015 decision to deregulate the tendu trade enabled this change, allowing for private sales and decentralised negotiations.

The empowerment of Gram Sabhas also contributed to financial planning at the village level. Funds generated through tendu sales could be directed towards village-level development work, community health needs, and infrastructure, creating an economic feedback loop tied directly to local priorities.

However, new complications emerged. In 2017, the national implementation of the Goods and Services Tax (GST) applied an 18% tax on tendu leaves, divided equally between Central GST and State GST. This tax replaced lower VAT rates previously set by individual states. Odisha, for example, had a 5% VAT, while Rajasthan levied 5.5%. The sudden increase in tax burden prompted concern among Gram Sabhas and activists.

Critics of the tax structure argued that the imposition violated the spirit of the FRA, which aimed to exempt forest-based tribal trade from such taxes.

There were fears that the additional cost would eventually reduce the earnings reaching collectors and community bodies.

The overlap between national tax policy and community rights continues to be a point of friction. While deregulation and community control over sales have improved transparency and income retention, taxation policies operate in a separate domain, often limiting the financial gains promised through grassroots control.

Environmental Risks and Future Uncertainties

The tendu leaf economy in Gadchiroli is inseparable from the health of its forests. Any decline in forest productivity directly affects the leaf yield, and by extension, the income of collectors.

Forest management practices play a critical role in maintaining or improving tendu production, but these methods remain contentious.

Two dominant approaches to increasing leaf yields have emerged. The Forest Department promotes pruning, a process that encourages healthier leaf regrowth but requires intensive labour and repeated interventions.

In contrast, several villagers prefer setting controlled fires, which clear the undergrowth and are believed to stimulate leaf shoots.

However, these fires come with consequences. In 2019, forest fires swept through parts of the Allapalli, Sironcha, and Gadchiroli divisions.

Thousands of hectares were affected, and concerns were raised about reduced regeneration, carbon release, and long-term soil degradation.

Conservation scientists advocate minimal interference in forest systems to preserve ecological balance.

They argue that controlled burning, while effective in the short term, may reduce biodiversity and harm the sustainability of the trade. With increasing evidence of climate-related changes in rainfall and forest health, the need for more balanced approaches is being discussed in policy and environmental circles, though uniform adoption remains absent.

The economic reliance on tendu leaves raises questions about the long-term durability of this trade in the absence of forest safeguards.

Tree productivity is finite, and overexploitation through aggressive harvesting or harmful management practices could reduce yields in the coming years. Localised deforestation, changing fire patterns, and inconsistent resource monitoring add to these concerns.

Each year, as collectors enter the forests, the condition of the trees determines the outcome of the season.

Sustainability has now become a vital concern, even if not fully integrated into the current collection and sales cycle. The future of the tendu trade rests on the health of the forests as much as it does on market prices, taxation models, or labour availability.

In a district where the economy is rooted in the landscape, the forests are not just background, they are the foundation.