Adivasis livelihood at stake

BEEDI, TENDU TRADE STARING DOWN THE GST BARREL

​Hyderabad: Earning through tendu leaves collection, a major source of sustenance for the Adivasis which is already down in the dumps due to successive governments’ ineffective handling, and beedi wrapping is now staring down the barrel of the Goods and Service Tax (GST) with both beedi and tendu leaves proposed to come under the higher slab rate structure.

The GST Council’s decision to slap 28 per cent tax on beedi and 18 per cent on tendu leaves is likely to affect the livelihood of lakhs of people especially of tribal communities and beedi workers spread across Adilabad, Khammam, Karimnagar and Warangal undivided districts.

It may be noted here that hitherto beedis remained largely untaxed compared to the taxation of cigarettes. Despite this, the working class of the industry - beedirollers and tendu leaves collectors – never enjoyed its benefits.

While the neighbouring States like Madhya Pradesh and Chhattisgarh have ensured sustenance of lakhs of people by managing tendu leaves collection effectively, at least half of the 339 tendu leaves collection units in Telangana were unsold leaving thousands of workers high and dry.

Against this backdrop, the new tax regime is likely to cast its shadow on the beedi manufacturing units. With the increase in beedi prices, the industry sources say, there was a possibility that consumer likely to turn to mini cigarettes.

Talking to The Hans India, Abnus Leaves Purchasers Association Warangal district president Kunchala Sad Vijay Kumar said: “It’s unfortunate that government wants to bring beedi and tendu leaf trade under the ambit of GST regime though it’s a well known fact that beedi is poor man’s cigarette. Consumer will be the ultimate sufferer.”

This comes in as a huge shock at a time when the industry is demanding the government to do away with the existing 5 per cent VAT on trade, he added. All India Agricultural Workers Union (AIAWU) Telangana State General Secretary B Venkat said: “The move to impose GST on beedis and tendu leaves is intended to benefit the corporate houses such as ITC.

The government which already hurt the industry by enforcing 85 per cent graphic health warning on beedi packets should think rationally.” It’s time for the government to understand that tendu leaves collection and beedi rolling is a means of livelihood for lakhs of people.

The onus is on government to show alternative means of livelihood to Adivasis as tendu leaves, one of the minor forest produces, collection is a major source of income to them, he said.