Padmapur: Absence of a clear-cut policy on pricing of mahua flowers in Odisha has come as an advantage to Chhattisgarh traders, who have been buying the minor forest produce from Bargarh district at cheaper prices.
According to sources, lack of marketing facility for mahua flowers forces people to sell the produce to Chhattisgarh traders at cheaper rates.
Reports said, mahua flower collection has been a good seasonal livelihood source for tribals and forest dwellers in Bargarh district.
Currently, people are collecting mahua flowers in various parts of Padmapur block. Every year, around 1 lakh quintal of mahua flower is collected from this block, providing seasonal livelihood to scores of people.
Locals lamented that the state government is yet to fix the minimum support price (MSP) of mohua flower. The government has enlisted it as minor forest produce and authorised the Panchayati Raj department to fix its price, but to no avail.
In such a situation, Chhattisgarh traders have camped in several villages and are commanding the price of mahua flower. As a result, flower collectors end up selling their produce at the prices fixed by the traders from the neighbouring state. It is alleged that the price the traders provide is not sufficient enough to cover the labour costs involved in collecting the flowers and drying them.
It was learnt that only 10 people have been issued licence to procure and store mahua flowers in this block this year. Several others who have applied for licence are yet to receive it.
As per guidelines, a licensed trader is entitled to buy 2,000 quintal flower, but in many cases they collect 10,000 to 15,000 quintal of the forest produce.
The Panchayati Raj department allows a person to transport a maximum of 50 quintal mahua flowers outside, but in most cases 500 quintal of the forest produce is being smuggled outside.
The traders pay 13.5 per cent sales tax and 18 per cent excise duty per quintal of the flower, apart from paying Rs 138 towards permit.
In reality, traders transport flowers over and above the permissible limits in collusion with officials and evade taxes on the excess amount, it was alleged. The state government also loses revenue worth crores of rupees on this count.
Deputy excise inspector Hemkant Suna said that officials are keeping a tight vigil on smuggling of mahua flowers.
“A special team of the Excise department has been formed. It has been conducting raids on various godowns,” he added.