Bhubaneswar, May 5 (PTI) Odisha Chief Minister Naveen Patnaik on Friday announced a Rs 111-crore financial package for 8 lakh kendu leaf puckers and people associated with trade of the forest produce.

This is the second phase of financial assistance to be given to the people engaged in kendu leaf trade in 2022.

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In the first phase, Rs 83 crore was sanctioned for the benefit of Kendu leaf pluckers.

Together, the financial assistance for kendu leaf pluckers and people associated with the trade has now become Rs 194 crore for 2022, which is the "highest ever" financial aid in any crop season, a statement issued by the Chief Minister's Office said.

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More than 8 lakh people will get the benefits, it said, adding that the assistance will be given to beneficiaries of Jharsuguda district after the May 10 by-poll there.

Kendu leaf is a non-wood forest produce and such leaves are used for rolling 'bidis'.

Every Kendu leaf plucker and each of those associated with the trade will get financial assistance of Rs 1,000 along with Rs 200 and Rs 160 for water bottles and sandals respectively, the CMO said.

Similarly, Rs 1,500 will be given as financial assistance to each regular and seasonal worker.

The state government has been demanding the withdrawal of Goods and Services Tax on the collection of kendu leaf.

Incidentally, Odisha is the third largest producer of Kendu leaf, contributing 20 per cent of the annual production in the country.

At least 18 districts, including Bargarh, Balangir, Sundargarh, Angul, Deogarh, Kalahandi, Kandhamal, Malkanagri, Nabarangpur, Koraput and Sambalpur, have the maximum kendu leaf growing areas.

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