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The Government has monopoly control over trade of Tendu leaves by virtue of the enactment of Maharashtra Forest Produce (Regulation of Trade) Act 1969. As per this act, the Tendu leaves shall be collected and disposed in such manner as prescribed by the Government. Tendu leaves can only be purchased by the officer authorised by the Government or the agent appointed by the Government. The Tendu leaves in the private holdings have to be sold to the agents appointed by the Government only. State monopoly trade was introduced mainly to prevent exploitation of labourers by the contractors and to plug the pilferage of Tendu leaves from Government land by the contractors.

Presently, modified lumpsum system is followed for collection and disposal of Tendu leaves. The units are sold through tender sale, by inviting sealed tenders of lumpsum amount for collection and removal of Tendu leaves to the extend of notified yield. Wide publicity is given through newspapers regarding the tender sale. Tenders of appropriate price are sanctioned by the competent authority. The successful bidders are appointed as licensees to the units purchased by them. The licensees collect, process, transport, store and sale the Tendu leaves from the concerned units at their own cost.

Collection :
The work of establishing collection centres, appointing the persons in charge of collection centres (Phadi Munshi), drying and curing Tendu leaves etc. is carried out by the licensees at their cost.
Maintenance of Record
Formats are prescribed by Forest Department to maintain the details of labourers collecting Tendu leaves, quantity collected daily, collection charges paid, quantity transported, quantity stored in godowns etc. The licensee is expected to make payment for collection to the labourers on daily basis. The licensee has to collect Tendu leaves to the extent of notified yield. He can collect Tendu leaves over and above the notified yield, not exceeding 25% of the notified yield. For the additional collection, he has to pay additional royalty and taxes at the pro rata basis.

Pruning :
The licensee can carry out pruning after obtaining permission from the Dy. Conservator of Forests (DCF). The expenditure on pruning is borne by the licensee.

Transport and storage :
The licensees transport the collected Tendu leaves are transported to the godowns that are approved by the DCF. Transport permits are issued by the Forest Department. The licensee has to insure the Tendu leaves against fire, damage etc. The licensee bears the expenditure on transport and storage. The leaves in the godown are kept in the duel custody of the licensee and Forest Department.

Payment of royalty :
The licensee has to pay the royalty and taxes as per the terms and condition of the contract

          The tendu units having well defined and properly notified physical boundary are sold through tender sale, by inviting sealed tenders of lumpsum amount for collection and removal of Tendu leaves to the extend of notified yield. Wide publicity is given through newspapers regarding the tender sale. Tenders of appropriate price are sanctioned by the competent authority. The successful bidders are appointed as licensees to the units purchased by them. The licensees collect, process, transport, store and sale the Tendu leaves from the concerned units at their own cost.