Ensuring Equity and Empowerment through Tendu Patta Procurement in Uttar Pradesh

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Project Details

Category: Livelihoods
Project Title: Collection and Disposal of Tendu Patta
Department or District: Uttar Pradesh Forest Corporation, Government of Uttar Pradesh
State: Uttar Pradesh
Start Date of the Project: 1st April 1983
Website: https://upforestcorporation.co.in/

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Tribe(s) that the Project Covers: The initiative primarily engages tribal and forest-dependent communities across various forest regions of Uttar Pradesh, including remote districts like Sonbhadra, Mirzapur, Chitrakoot, and Lalitpur.

Keywords: Employment Generation, Tribal Livelihoods, Digital Financial Inclusion

The Collection and Disposal of Tendu Patta initiative, implemented by the Uttar Pradesh Forest Corporation (UPFC), is one of the state’s longest-standing efforts to uplift marginalized tribal laborers through forest-based livelihood opportunities. Launched in 1983, the project ensures that tendu leaf collection—a significant source of seasonal employment in tribal areas—is carried out in a manner that promotes transparency, timely payment, and the removal of exploitative intermediaries. Through technological upgrades and institutional restructuring, the project has evolved into a model of fair trade and social equity within the minor forest produce sector.

The Project

The project involves the organized collection, procurement, and disposal of tendu leaves, a critical raw material for the beedi industry. UPFC acts as the nodal agency responsible for overseeing every stage of the value chain, from issuing collection permits to conducting e-auctions for buyers. One of the transformative features of the project has been the integration of digital payment systems which directly transfer wages to laborers’ bank accounts, ensuring immediate and full remuneration. Furthermore, an ERP (Enterprise Resource Planning) module has been developed to track collection, procurement, and transportation in real-time. The Corporation has also introduced the practice of advance sale and pre-season transportation to mitigate quality losses and storage costs, making the process both efficient and equitable.

Problems that it Intends to Solve

Historically, tendu patta collectors, primarily tribal laborers, were subjected to severe exploitation by private contractors and middlemen. Payment anomalies, under-reporting of collections, wage theft, and delayed remuneration were widespread issues. The absence of formal systems for documentation and fund transfer meant that thousands of workers were excluded from fair compensation. Additionally, large volumes of tendu leaves were rendered unusable due to inefficient storage, poor handling, and delayed sales, which created financial losses for both the corporation and the collectors. The unorganized nature of the sector also led to irregular employment and economic instability in forest-dependent communities.

What was the Need

The need for the project arose from the dual imperative of improving forest-based livelihoods and regulating the minor forest produce market. Uttar Pradesh’s tribal population depends heavily on tendu leaf collection during the summer months. Prior to UPFC’s intervention, the system was rife with corruption and informality, and tribal communities lacked any institutional support. The government recognized the potential of this seasonal activity to provide large-scale employment and income security, particularly for marginalized groups. A state-led intervention was needed to create an accountable system that would guarantee wages, remove exploitative agents, and streamline the supply chain.

What Hindered its Introduction

Initially, the absence of formal banking infrastructure in remote tribal areas posed significant challenges to implementing direct payment systems. Many laborers lacked bank accounts or the documentation required to open them. Resistance was also encountered from entrenched middlemen who profited from the informal system. Digitization was hindered by limited internet access and digital literacy among workers. On the institutional side, the project demanded the creation of a robust logistics system for transportation, storage, and auctioning, which took years of capacity-building and coordination across departments.

Process Followed for Implementation

The implementation process began with replacing contractor-led procurement with a centralized, state-managed system. Laborers were registered by UPFC, and each collector was issued a passbook and identification credentials. Digital payment mechanisms were introduced in a phased manner, with support from local banks to facilitate account opening for unbanked individuals. The Corporation set up a digital dashboard through its ERP module to log daily collection entries, volumes, and prices. Advance sale mechanisms were introduced wherein buyers were identified before the harvest season, and transport schedules were aligned to minimize holding time. Field-level audits and digital transparency tools were added to improve compliance and traceability. The entire process was anchored by UPFC’s mandate to provide timely payment, promote fair trade, and enhance tribal income.

• Government
  • The project is implemented by the Uttar Pradesh Forest Corporation, a state-owned enterprise under the Forest Department of the Government of Uttar Pradesh. It acts as the sole agency authorized for procurement and disposal of tendu leaves, ensuring alignment with both state policies and central guidelines on forest produce management. The government provides administrative support, policy direction, and coordination with financial institutions for smooth execution.
• Involvement of Community
  • Tribal communities form the backbone of the initiative. They are involved directly in leaf collection, bundling, and transport. Through the project, laborers have gained access to formal banking, learned to manage digital payment systems, and become part of a transparent wage ecosystem. The creation of a direct interface between the Corporation and tribal workers has also improved participation, satisfaction, and social inclusion. Community members often serve as field agents and depot-level coordinators, enhancing local ownership of the process.

Solutions Implemented

Several integrated solutions were implemented to address the structural and operational challenges. These included the deployment of a digital payment system to ensure wages were credited directly to workers’ accounts, thereby removing intermediaries. The ERP system introduced real-time tracking of procurement data and logistics. Advance sale and on-time transportation prevented quality deterioration and storage losses. Field staff were trained to ensure accurate data entry and wage computation. The Corporation also improved packaging, safety, and handling practices to meet market standards and reduce wastage.

Details of the Coverage

The project covers several forest districts in Uttar Pradesh, including Sonbhadra, Lalitpur, and Chitrakoot, where tribal populations are concentrated. Thousands of tribal laborers participate annually in tendu patta collection. The initiative has created consistent seasonal employment for these communities and ensured wage protection for over 7500 individuals across the implementation landscape.

Innovation and Unique Features

The introduction of digital payments, an integrated ERP system, and the concept of advance sale and real-time logistics constitute the key innovations. Unlike traditional procurement models, UPFC’s initiative uses a zero-middleman model. Laborers have access to passbooks and accounts, enabling financial inclusion. The ability to track every stage of leaf collection through digital tools has made it one of the most transparent and efficient MFP initiatives in India.

• New Approaches: Tech integration, capacity building, culturally sensitive methods
  • Technological integration was achieved through ERP deployment and digital wage transfer systems. Capacity-building included training staff and laborers in digital record-keeping, financial literacy, and documentation. Culturally sensitive practices were upheld by aligning collection schedules with tribal calendars and employing local language interfaces in training material.
• Co-creation: How tribal knowledge or leadership shaped the solution
  • Tribal knowledge of the best tendu leaf collection times, bundling methods, and storage practices contributed to the project’s design. Local laborers were consulted on practical issues such as transport distances and depot management. Their feedback shaped logistical changes and system improvements.

Initially limited to paper-based records and cash payments, the project adapted by transitioning to fully digital documentation and banking. Account opening support camps were introduced. Over time, auctioning also shifted to e-platforms. ERP dashboards were expanded to include mobile-enabled modules for better accessibility.

Challenges Faced Before Implementation

• Internal Challenges
  • The Corporation lacked the digital infrastructure to manage high-volume procurement, payment tracking, and quality control. Staff required extensive retraining in digital operations and logistics planning.
• External Challenges
  • There was deep mistrust among tribal workers due to historic wage theft. Internet penetration and bank branch availability were low in target areas. Resistance from former intermediaries also created political and social friction.
• Mitigation Efforts
  • To overcome internal gaps, UPFC invested in staff training, ERP development, and improved field coordination. Externally, banking camps were set up in villages, and awareness drives were conducted to build trust. Government support helped neutralize middlemen influence.

Challenges Faced During Implementation

• Maintaining real-time data integrity and ensuring timely transportation continued to pose difficulties. Staffing at remote depots was another operational challenge.
• Seasonal disruptions due to weather, logistical delays, and occasional discontent over grading or pricing were observed. Ensuring universal digital adoption also remained a hurdle.
• Flexible deployment schedules, mobile units for collection, and grievance redressal mechanisms were introduced. Regular audits and performance reviews helped refine operations.

Outcomes

• The initiative provides seasonal employment to thousands annually, with 7500 direct beneficiaries recorded in recent years. Payment timelines have reduced drastically from weeks to hours, and procurement losses have declined.
• Laborers report improved financial security, trust in institutions, and dignity of labor. There is greater community participation, increased digital literacy, and a sense of ownership over local forest resources.
• The ERP system allows continuous real-time monitoring of procurement and disbursal. Supervisory staff conduct field audits. A centralized dashboard consolidates collection and payment data, enabling prompt corrective measures.
• The primary beneficiaries are tribal tendu leaf collectors across multiple districts in Uttar Pradesh. Secondary beneficiaries include local transporters, depot workers, and auxiliary staff.

Replicability / Scalability / Sustainability

The initiative aligns with national priorities on MFP procurement under Minimum Support Price schemes and supports SDGs on poverty reduction and decent work.

Revenue generated through tendu patta sales sustains the procurement system and staff deployment. Digitization has reduced administrative costs, improving fiscal resilience.

The project’s model has been noted as replicable across other forest states. Its low-cost digital interface, direct payment mechanism, and ERP backbone make it adaptable to various geographies.

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