The government has reduced the tax imposed on bidi in the GST Council meeting held on 3-4 September. At the same time, after the new rate is implemented on September 22, products like cigarette and gutkha will become more expensive now. It is believed that this decision has not been taken suddenly, there is a big economic, social and perhaps political mathematics behind it.
The government has reduced GST from 28% to 18% on bidi. At the same time, GST has been reduced from 18% to 5% on leopard leaves used in bidi. The government argues that more than 70 lakh people are connected to the bidi industry, due to more tax, their employment was in danger. Let’s know which are the most bidi leaves producing states in the country…
These are the country’s largest bidi production states
- Madhya Pradesh:
Madhya Pradesh is the largest producer of Tendu leaves. About 25% of the leopard leaves of the entire country come from here, which are most important in making bidi. - Chhattisgarh:
This state is at number two, and contributes about 20% to India’s total tendu leaf production. - Odisha:
Odisha also has a big hand in this industry, from where 15-20% tendu leaves are produced. The leaves here are considered to be the best. - Maharashtra:
This state also plays an important role in the bidi industry. Especially in the western region, millions of people get employment by making bidi. - Jharkhand:
Jharkhand is also included in the states where Tendu leaves cultivation and bidi construction are done on a large scale. - Andhra Pradesh:
Bidi construction is also a traditional industry here, especially women. - Rajasthan:
Tendu leaves are found in abundance in the southern and eastern parts of Rajasthan, due to which the beedi industry is also flourishing here. - Gujarat:
The state of Gujarat is also known for beedi leaf production.
Gujarat leads in terms of tobacco production
Talking about tobacco production, Gujarat is number one in it. Saurashtra, Gujarat has the highest production of tobacco. The state of Gujarat is 41% in terms of tobacco production. At the same time, Andhra Pradesh is in second place where 22% of the country’s tobacco is produced. Apart from this, Karnataka is at number three with 16% stake.
Bidi: 7.2 million people habit
Bidi may look cheap and ordinary in appearance, but the business of billions is hidden behind it. This industry has become a habit of about 7.2 crore people across the country and employs about 70 lakh people. The specialty of this industry is that it runs mostly at the cottage or domestic level. Millions of women make bidis sitting at home but they get very little remuneration.
Increased tax on cigarette and gutkha
While the bidi has become cheap, GST has been increased from 28% to 40% on products like cigarettes and gutkha. However, these new rates will be applicable from September 22. Bidi may have become cheap, but it is more dangerous than cigarettes in terms of health. Beedi has neither filter, nor has any strict warning on its packaging.