New Delhi:
A major domestic employment in the country, in which women have the highest participation, is now dying. Due to government policies regarding beedi production, this cottage industry is now in a bad condition. On one hand, there is a heavy burden of Goods and Services Tax (GST) on the beedi industry, while on the other hand many strict rules are also applicable. Beedi workers are getting very less remuneration. Troubled by this, laborers in rural areas are abandoning beedi making and migrating to cities for employment. According to the annual report 2023 of the Labor Ministry, the number of registered and unregistered workers making beedis in the country is around 80 lakh. More than 72 percent of these are women workers.
Earlier, in many parts of the country including Bundelkhand in Madhya Pradesh, a large population of lower class villagers used to earn their living by making beedis. This work used to provide employment to many family members, but now the situation has completely changed.
Learned beedi making from parents
Vandana Koshti, a beedi worker from Sagar district in Bundelkhand, Madhya Pradesh and three female members of her family make beedis. He told NDTV that each member makes about 500 beedis every day. This earns an income of about Rs 150 per day. Out of thousand beedis, about 75 beedis are sorted and rejected. He told that his family has a paan shop, men run that shop and women make beedis. Women continue to meet their own expenses from what they earn. He told that he had learned beedi making from his parents, but the children of his family do not like making beedis because the income from it is low. Vandana Koshti told that she has studied till eighth standard.
He said that there is no other industry in Sagar, hence apart from beedi making, we do not have any other source of employment. If we go for any other option, we get less money, hence making beedis seems better.
It is difficult to earn a living by making beedis.
Beedi laborer Vijay Kumar said that now it is becoming difficult to earn a living by making beedis. If they get work as laborers in construction work, they do it. When that work is not available, they make ends meet by making beedis. It is true that other employment is not permanent, but beedi work is permanent.
When Vijay Kumar was asked whether there are any health problems in making beedis, he said that it does not cause any problems. Making beedis does not cause any disease. On the question of disease caused by smoking beedi, he said that beedi does not cause any disease. Even if a 50 year old man smokes beedi, he does not suffer from any disease. People who are fond of cigarette and gutkha develop diseases within five-six years. Why do beedis not cause diseases? On this question he said that there is no chemical in beedi. Chemicals are used in cigarettes and gutkha.
The number of beedi workers decreased by 75 percent in a few years.
Beedi laborer Bhagwan Das said that the wages are less. In comparison to a few years ago, the number of people working as beedi laborers has reduced to 25 percent. People do other work. A construction worker gets Rs 400 a day. For making one thousand beedis in a day, one gets only about Rs 60. He told that the earlier generation who used to make beedis, the new generation did not take up this work, hence the number of beedi makers has reduced. Other work requires more hard work but the family is able to survive.
Bhagwan Das told that ever since the popularity of Gutkha has increased, people have also reduced the smoking of beedis. Despite Gutkha being more harmful, people still eat it. However, people in villages prefer to smoke beedi.
Beedi worker Rajkumari Khatik told that she has been making beedis for about 30 years. Beedi wages are low while inflation has increased a lot. Rates should increase according to inflation. They are barely able to make one thousand beedis every day. Son sells fruits.
Those not paying GST are happy, honest companies are in loss.
Regarding the decline in beedi business, Rahim, a beedi trader, said that less beedis are being sold now and the companies are paying a lot of tax on beedis. GST is very high and tendu leaves are also very expensive. This is making it difficult to run this business. He said that those who are doing business illegally are having fun. They do not pay GST. The companies which are depositing GST honestly are facing huge losses.
Rahim said that the reason behind the decrease in the number of beedi workers is the low wages. The remuneration for one thousand beedis is Rs 100. If someone earns Rs 100 a day, how will he spend his money? People are leaving and migrating to work as labourers. Many beedi companies have been closed. Earlier, people used to make beedis at home as a domestic business, now its condition is very bad. Women are now doing other work instead of making beedis.
When asked about measures to revive the beedi industry, Rahim said that the government should provide facilities to beedi companies. Taxes should be reduced. Apart from this, the government should rein in those doing ‘number two’ business. Honest companies are in loss because of these people. He said that the number of people consuming gutkha is increasing even though it is very harmful.
Women stopped working after getting money in government schemes
Beedi contractor Laxman Prasad Yadav’s business has been going on for about 50 years. He said that now beedi workers have become less because the wages are less. Earlier all the members in the families used to make beedis, now only one or two people in a family do this work. People work as daily wages and get at least Rs 400 per day. A beedi maker can earn only 100-125 rupees. Beedi wages are paid at the government rate. The cost of beedis has increased.
He said that mostly women make beedis. Ever since Ladli Behna Yojana and other similar schemes started running, they have stopped making beedis. Earlier, laborers used to make beedis, raise their children, educate them and even build their own property. But now they are not able to do all this. Earlier inflation was less. The income of these laborers could not increase as much as inflation increased.
Restrictions on beedi, no ban on gutkha
Bidi industrialist Mohammad Arif told that his grandfather had started the beedi business around 1960. He attributed the deteriorating condition of beedi business to Gutkha. He said that the new generation likes Gutkha. Some rules have also been implemented by the government regarding beedis, like smoking beedis and cigarettes is prohibited in public places. But there is no such restriction on Gutkha.
He said that some artificial things are added to Gutkha which makes it taste good, but it is very harmful for health. When asked about the difference between beedis and cigarettes in terms of harm, he said that cigarettes are manufactured in factories. It is made by machines. Whereas workers make beedis 100 percent by hand. The things used in it are organic. Tendu leaf grows in the forest and tobacco is cultivated by farmers. No artificial things are mixed in it. Beedi is 100 percent organic.
Mohammad Arif said that making beedis is a skill. The interest in making beedis has decreased in the new generation. They consider this work as small. The government’s rules regarding beedi production are also very strict. Small units are facing problems due to many strict rules in buying and selling beedis. Getting less tax can provide relief. With this, the rates can be reduced and we can increase the wages of the workers. Wages can be increased only when more benefits can be obtained. When wages will be higher and employment will be available, people can take up this work again. Wages are quite good for other jobs. Wages are also available under MNREGA and other government schemes.
Many challenges due to complex tax structure
The beedi industry is facing many challenges due to the complex tax structure. Registered beedi manufacturers are burdened with tax, while unregistered companies are able to avoid tax and labor regulations. The cost of manufacturers has increased due to 28 percent GST on beedis and 18 percent GST on tendu leaves. On the other hand, unregistered beedi manufacturers are outside the scope of these taxes and labor laws, due to which workers do not get social security and social welfare benefits.
Earlier the central excise duty on beedis was minimum. Apart from this, many state governments had exempted beedis from sales tax to support the livelihood of workers. But under GST, beedis were classified as ‘demerit’ goods, making it subject to the highest GST rate of 28%.
Unregistered beedi production increased
Unregistered beedi workers form an important part of the industry’s workforce in the country, but they are the most vulnerable. Unlike registered sector workers, they are not getting the benefits of government welfare programs like healthcare, pension and education grants for their children. Due to increase in unregistered beedi production due to heavy GST rate, a large number of workers have come under the ambit of informal employment. They get less remuneration and do not even get social security protection.
The beedi industry is appealing to reduce the GST rate on beedis to 5%. He says that it should be brought within the limit of GST rate fixed for other cottage industry products. This step will provide relief to registered manufacturers. This will encourage formal employment and workers in this sector will get the benefits of welfare schemes. Reducing GST will ensure a more equitable and sustainable future for the millions of workers and families who depend on the beedi industry for their livelihood.
Women can become self-reliant through employment at home
Beedi came into existence in India more than 300 years ago, at the end of the 17th century. The beedi industry in the country developed rapidly around 1930. Around 1950, it became a highly competitive industry. At that time beedi manufacturing was done in factories. After this the factories came to an end and beedi manufacturing took the form of a cottage industry. With the convenience of doing this work sitting at home, women in particular could gain employment and self-reliance.
For more than a century, the beedi industry has played an important role in promoting social and economic mobility, especially in rural areas. Families dependent on beedi work have been able to educate their children. Some of the children of beedi worker families have become doctors, engineers, government officials and professionals in other fields. This rise across generations is a powerful example of how traditional, grassroots industries like the beedi industry have been instrumental in socio-economic progress.
GST burden increased production costs
All India Beedi Industry Federation says that the current 28 percent GST on beedi products is a big threat to the existence of this industry. Unlike the mechanized sector, beedi production is a labour-intensive cottage industry dependent on skilled manual labour. Due to the burden of GST, production costs have increased, work orders have decreased and employment has been reduced. If GST on beedis is not reduced, there is a risk of millions of beedi workers losing their only source of livelihood. It is important to maintain employment opportunities for marginalized communities.
