THE BEEDI INDUSTRY OF

INDIA
Introduction 1
History of the Beedi Industry 2
Political Aspects of the Beedi Industry 4
Economic Aspects of the Beedi Industry 6
Social Aspects of the Beedi Industry 12
State Analysis of West Bengal 16
State Analysis of Tamil Nadu 22
State Analysis of Gujarat 27
State Analysis of Karnataka 30
State Analysis of Bihar 33
State Analysis of Kerala 36
State Analysis of Madhya Pradesh 40
State Analysis of Haryana 46
State Analysis of Andhra Pradesh 49
State Analysis of Uttarakhand 52
State Analysis of Uttar Pradesh 56
State Analysis of Assam 60
Policy Suggestions 63
Conclusion 64
References 65
The beedi industry in India is huge, unregulated, and a breeding ground
for festering occupational hazards. In 2015, the estimated number of
beedi smokers in the age group 15 to 69 years was around 6.9 crores. To
compare, the same estimate for cigarette smokers was around 6.1 crores.

The industry also employs a large number of women and children. Out of
the estimated 50 lakh beedi workers in India, approximately 90% are
women.

On paper, there are multiple legislations protecting beedi workers in

India such as the Beedi and Cigar Workers (Conditions of Employment)
Act 1966, Beedi Workers’ Welfare Fund 1976 and social security laws such
as the Provident Fund Act 1952, Employees State Insurance Act 1948,
Maternity Benefit Act 1961 etc.

In India, beedis are twice as popular as cigarettes. However, unlike the

cigarette industry, beedi production and sales remain unregulated.
Research also shows that death rates among beedi smokers are 64 per
cent higher than for non-tobacco users.

The industry’s largely unregulated nature leads to the mass exploitation

of beedi workers. Policy solutions, better implementation and social
mobilisation are needed to ensure that beedi workers are treated fairly
and get the compensation that they deserve.

Through this report, we hope to analyse the beedi industry in various states
across India. We hope to uncover the loopholes in the implementation of
policies in the beedi industry and provide suggestions for the same.

1
The origin of the Tobacco crop in India roots back to the 1600s when it was
first introduced by the Portuguese. As per the Indian Council of
Agricultural Research (ICAR) - Central Tobacco Research Institute's report,
attempts to improve Indian Tobacco began with the establishment of the
Calcutta Botanical Gardens in 1787. The Virginia tobacco cultivation and
experiments were first initiated in Pusa and Ghazipur (UP) and its
commercial cultivation in the black soils commenced in the year 1920. By
the 1930s, India had established a strong footing in the world tobacco map.
Following through on the success of Indian tobacco in the international
market, the excise duty on tobacco was established and since then has
remained as one of the major sources of excise revenue.

A woman colllecting A pile of rolled beedis

tendu leaves used to that are ready to be
wrap beedis in the packaged into vinyl
forests of Chhattisgarh. packets. 2

2
In colonial India, the birth of the beedi industry was a result that overcame
the obstacle of sharing hookahs, as individuals could smoke without
hurting caste and religious sentiments which were prevalent in that era.
From a home-grown business, it expanded into an entire industry largely
owing to its newfound popularity and easier portability. The drought of
1899 in Gujarat compelled many families to migrate in search of a
livelihood, and the beedi became a small scale industry. Around World War
II, the beedi industry became an important and widespread cottage
industry in urban shanties and rural areas. With the advent of the railways
in Central India, sourcing tobacco and selling beedis became more
efficient. This led to the trademarking of beedi brands.

A graph
depicting the
growth of beedi
manufacturing
and revenues
produced by the
beedi industry
over the period of
2005-2011.

The ‘Swadeshi Andolan’ which was started by Mahatma Gandhi in 1920

resulted in beedi receiving a further impetus when the educated class
shifted from cigarettes to beedis, therefore expanding the purview of the
beedi industry from the rural and lower-middle-class folks to the Indian
elites. This beedi cult gained a strong foothold in the informal urban and
rural economies as the habit of smoking trickled down from the cities to
remote villages and towns. As the nation united in its battle for freedom,
the beedi industry became inclusive of all strata of Indian society.

In about 150 years since its invention and less than a century since it began
mass production, the beedi industry has truly evolved and permeated
every stratum of society and every state in India. 3
The following existing legislation are currently in place in India:

The Beedi Workers Welfare Cess Act, 1976

This act aims to collect taxes by way of cess or by imposing excise duty on
manufactured beedis. The Beedi Workers Welfare Fund Act, 1976 was
enacted with the objective to promote financial assistance to the workers in
terms of sanitation, health, water, education, housing, recreation.

The Minimum Wage Act, 1948

India introduced the Minimum Wages Act in 1948, giving both the Central
and State governments jurisdiction in fixing wages. The Act is legally non-
binding but statutory. Payment of wages below the minimum wage rate
amounts to forced labour. Wage boards are set up to review the industry's
capacity to pay and fix minimum wages such that they at least cover a
family of four's requirements of calories, shelter, clothing, education,
medical assistance, and entertainment. For the beedi industry, it was
recommended that the minimum basic wage for beedi workers should not
be less than Rs. 25 a day for 1,000 beedis based on the estimate that an
average worker could roll 800 beedis per day. The current wages paid to
beedi workers ranges from as low as Rs.29/- per thousand beedis rolled in
Tripura to about Rs.65 per thousand beedis rolled in Gujarat. In January
2019, an expert committee appointed by the Union labour ministry had
recommended that the government should set the national minimum
wage at Rs 375. However, under the Code of Wages, 2019, the national
minimum wage has been set at Rs 178 as of now.

Beedi and Cigar Workers (Conditions of Employment) Act, 1966

This Act aims to regulate the conditions of employment of workers
employed in the beedi manufacturing units.
4
The Contract Labour (Regulation and Abolition) Act 1970
This Act aims to regulate contract labour in certain establishments. It
applies to every establishment with 20 or more contract workers and to
every contractor who employs contract labour.

The Equal Remuneration Act 1976

This Act aims to ensure that the employer is to pay equal remuneration to
men and women workers for the same work or work of a similar nature.
The claims and complaints are to be heard by authorities appointed by the
state government.

The Maternity Benefit Act 1961

This Act aims to regulate the employment of women before and after
childbirth and to provide maternity benefits. The maternity leaves up to 12
weeks for all women, not more than 6 weeks preceding her date of
delivery. A medical bonus of Rs. 3,500, additional leave up to one month,
and in case of miscarriage, 6 weeks leave with average pay is to be given.
There can be no discharge or dismissal during maternity leave.

The Cigarettes or Other Tobacco Products (Prohibition of Advertisement

and Regulation of Trade and Commerce, Production, Supply and
Distribution) Act 2003 or COTPA
The Government has made the direct advertisement of beedi and tobacco
products illegal in India. The Government has also prohibited smoking in
public places. It is to be noted that while this act has been successful in the
regulation of tobacco and beedi, it still has various shortcomings.
Generally, the minimum wage that a worker gets tends to be the
maximum he/she can get in this industry, and quite often even the
minimum wage is not paid. Rejections, making the worker pay for extra
leaves, asking the worker to make more beedis are all ways of cutting the
minimum wage.

Therefore, the loopholes in these policies and the lack of strict

enforcement are the reasons why the beedi workers in India are suffering.
5
India is the second-largest producer and third-largest exporter of tobacco
and beedi products worldwide.

1) Domestic Market – In India, it is seen that the main hotspots of tobacco

consumption are primarily in the Eastern, Northern and North-Eastern
parts of the country. According to the Global Adult Tobacco Survey
undertaken by the World Health Organisation (WHO), in India,19% of men,
2% of women and 10.7% (99.5 million) of all adults currently smoke tobacco
in India. They also found out that 29.6% of men, 12.8% of women and 21.4%
(199.4 million) of all adults currently use smokeless tobacco. Thus, we can
see that smokeless tobacco is more preferred in India. It was also seen that
the average monthly expenditure on beedi (for daily beedi smokers) was
around Rs. 284.1 crores. India is one of the highest consumers of tobacco
and beedi products in the world. The government hasn’t been able to
control the consumption of tobacco and bidi in India despite high taxes
and stringent regulations.

2) International Market - India mainly exports unmanufactured tobacco to

Belgium, Korea, Nigeria, Egypt and Nepal. Western Europe is also a key
market for Indian tobacco export. As per the Indian Tobacco Board under
the Ministry of Commerce & Industries in November 2020 India exported
unmanufactured tobacco worth Rs. 305 crores. If we go deeper into the
data, we can clearly see that India is a major player in the tobacco and
beedi industry globally as well.
6
 Production of Beedi
Beedi production is largely concentrated in the states of Madhya
Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, West Bengal, Bihar
and Odisha. Most of the beedi is produced in homes where women and
children account for a sizable proportion of the beedi makers. According
to a report by WHO the annual production of Bidi is around 550 Billion
pieces per year.

The process of beedi making involves the following:

Collecting tendu leaves
Soaking tendu leaves in water
Drying tendu leaves
Cutting tendu leaves in suitable size and shape
Rolling tendu leaves
Filling and wrapping roles with tobacco powder
Packing them into vinyl packets

Sorting tendu leaves before Rolling tobacco into tendu

delivery to beedi workers leaves

The beedi packaging has poorly visible health warnings. Additionally herbal
flavours are being produced to appeal to the youth as 'natural and safe'. In
India, there is a monopoly of some big beedi manufacturers. The All India
Beedi Industry Federation, a body of over 240 manufacturers, controls over
two-thirds of total branded beedi production. These are powerful and rich
people who are in close touch with the politicians of their areas, hence they
are able to find loopholes and break rules that are meant to protect the
beedi workers. 7
Taxation
According to the World Health Organisation, countries must impose
tobacco excise taxes that amount to at least 75% or more of the retail
price to reduce the consumption of tobacco and tobacco-related
products like beedi. The most popular quantitative tool for the
government to regulate beedi consumption is taxes. Some qualitative
tools like prohibiting smoking in public places and ban on the marketing
of tobacco-related substances are also used. The qualitative tools have a
direct effect on cutting access or ease of consumption but it does not
prevent people from consuming the substance. The difference with taxes
is that they can be raised no matter how high the existing rate may be.
In India the Government has kept the beedi industry under a lower tax
bracket, keeping in mind the vast employment it provides in the rural
areas. As per Government data, the tax rate on beedi leaves has been kept
under the tax slab of 18%, while beedi itself is taxed at 28% without any
additional cess unlike cigarettes and other tobacco products, so beedi
continues to be a cheaper alternative. The government has not pushed
back against the beedi industry because of the massive employment and
livelihoods it provides in the rural areas.

It is imperative to understand the importance of quantitative tools like

taxes on tobacco use, especially in low middle-income countries. The
governments of such nations derive a greater proportion of their revenue
from indirect taxes, like the one on tobacco than from direct sources like
income tax. The rationale behind taxing this good is not just to discourage
its consumption. It is also looked upon as a means to make the consumers
pay for the harm they cause to the environment.

A crucial fact behind understanding the demand for tobacco is that it is an

addictive good. As per consumer theory, a consumer knows what will give
him the maximum utility. In cases of addiction, the law of marginal utility
may not always hold true. Increasing the retail price by increasing taxes
might not discourage beedi consumption. However, a 2010 study by anti-
smoking campaigners revealed that a tax increase to Rs. 98/ 1000 sticks
would increase tax revenues by approx. USD 550 million, and prevent
8
15.5 million premature deaths amongst present and future smokers,
re-affirming our faith in taxation.
The only party that benefits here are the producers of tobacco. High sales
tax on tobacco and marketing activities pertaining to ban/ sale of bidis
often entices producers into increasing the cost of product and enjoy the
extra tax revenue raised. Producers in this industry often have local
monopolies. Besides generating benefits through increased taxes, they
have different strategies to maximise profits. When the business dynamic
is favourable and the government does not levy constraints, monopolists
set the price lower than the short-run profit, thus maximising position
and sales. In case of an unfavourable business environment, a monopolist
will set up a high price to cover future costs and sales prospects will
decline. The practices adopted by producers in this industry nullify the
outcomes the government seeks through its intervention.

Women beedi workers

rolling beedis in an
unhygienic environment

Employment in the Beedi Industry

The tobacco industry provides direct and indirect employment to

approximately 45.7 million people in the country ranging from tendu leaf
pickers to factory workers. A vast majority of this employment is in the
rural areas and hinterlands of the country. Most beedi workers work from
home without having adequate infrastructure and hygiene standards.
The beedi industry for a long has been a source of livelihood for poor
women and children. The government too recognises the role of the
beedi industry in providing employment, thus it has so far refrained from
any significant cesses or tax hike in the beedi industry due to fear of
blowback. 9
Stakeholders:

Individual Stakeholders:
The most important stakeholder in the Beedi Industry is the Beedi Worker.
The Beedi Workers face multiple health and occupational hazards as well
as severe discrimination. These practices are especially prevalent in rural
areas of India wherein the age-old social evil of caste-based discrimination
is still practised. Moreover, another important stakeholder is the family of
the beedi workers. The young children in the house are deprived of
educational and developmental opportunities due to the lack of sufficient
family income. Instead, the children are also pushed into the vicious cycle
of the Beedi Industry as the young girls are forced to roll beedis in their
home.

Institutional Stakeholders:
The state government and the Union Government both play a huge role in
trying to improve the lives of the Beedi Workers. State Governments across
India have set different minimum wages to support the Beedi Workers.
Moreover, they also focus on benefits such as bonuses ensuring that the
workers’ names are included in the Provident Fund registration list.

The Middleman:
The Middleman (known as the Sattedar) also plays a huge role in the Bidi
Industry. They get a commission based upon the number of beedis they
supply to the distributors. As a result of this commission system, the
Sattedars heavily exploit the Beedi Workers. There have been many
reports of the Sattedar paying the Beedi Workers less than the minimum
wage prescribed by the government. Moreover, Sattedars also reject
around 20-25% of the Beedis produced by the workers and sell them in the
black market to make money. The role of the Sattedar needs to be
regulated in the Beedi Industry in order to ensure that the Beedi Workers
actually get the benefits of their job.

10
Beedi Consumption Costs

Beedi consumption results in costs not only for the consumer but for the
government and society as a whole. For the consumer, there are future
financial implications associated in terms of healthcare bills, pension, life
insurance. As per a report by the Ministry of Health & Family Welfare, total
direct and indirect cost of diseases attributable to tobacco use far exceed
USD 15 billion. The entire society is exposed to health risks due to the rise in
Environmental Tobacco Smoke. Although the government gains revenue in
the form of tax through tobacco consumption, it loses out on its objective of
upholding community welfare.

Future steps

Restricting the supply of tobacco is a major issue in India since it is a multi-

sectoral problem. Different regions grow different varieties of tobacco.
Cultivating, processing, marketing, and exporting tobacco is a source of
livelihood for millions, including farmers, agricultural labourers, processors,
bidi rollers, tendu leaf pluckers, and retailers; the majority of these workers
are poor. The Government faces a strong trade-off between restricting and
regulating the beedi industry on one hand and letting it run smoothly so as
to avoid large scale unemployment.

While beedi is regarded as an undesirable substance, we can not ignore the

fact that this industry provides employment to millions. A point worth
noting is that it provides livelihood to a large number of rural women.
Exercising stringent measures in terms of eliminating beedi use will have
greater implications in terms of the employment this industry generates.
The government must thus look at various employment alternatives that it
can shift the beedi workers towards. Rehabilitation of the workers is
essential if the government is really willing to reduce the dependency of
workers on the beedi industry. The Ministry of Labour and Employment in
collaboration with the National Skill Development Corporation is providing
skill-based training to beedi rollers and their dependents, to assist them to
shift to more remunerative and healthy alternative sources of 11
livelihood.
Impact on beedi consumers
Many psychological and mental costs are also associated with beedi
consumption. These costs include the suffering of the consumer’s kins and
the negative, toxic, sceptical vibe created by the smokers in society. These
costs become difficult to be accounted for in monetary terms but the effect
they have can not be ignored. Studies have revealed that in many societies,
the crime rate is directly linked to tobacco consumption. Often,
unemployment directly promotes tobacco use. Anti- smoking and anti
tobacco consumption campaigns have never penetrated rural areas of
India, where awareness is needed the most.
Impact on beedi workers
The beedi industry is known to be labour exploitative. The lack of policy
implementation leaves beedi workers vulnerable and their social-economic
conditions are dismal.
Health impacts on beedi workers

12
Condition of Beedi Factories

In the bidi factory, there are no effective ventilation systems and the size
and number of windows are not adequate. The workers gather the
powder using bare hands and pour the powder over a bunch of empty
beedi rolls. Then, they shake the rolls to evenly distribute the powder. After
filling the rolls, the workers wrap them one by one to close the fire-side of
the beedi to prevent the tobacco powder from spilling out. During this
process, tobacco powder is expelled into the air.

The home environment is also not different from the harsh factory
environment described above. Several families make beedis in general
living spaces. The houses are not partitioned into working and living
spaces. The families usually make beedis, cook meals, and sleep in the
same space. Beedi workers are often exploited in these factories. They are
not paid the desired wage. Overall compensation provided to them is
much less than the services provided by them.

A large number of beedi

workers rolling beedis
without safety precautions
and infrastructure
provisions.

The process of rolling

beedis requires nimble
movements and is very
harmful to the skin and
nervous system.

13
Gendered Lens in the Beedi Industry

The AF Development Care study shows that there is a significant gender

gap in terms of pay, and women on an average earn Rs 126 per day, as
compared to men, who earn Rs 266 per day on an average. 50% of
workers employed in beedi industries are women, but women are paid
very low wages in comparison to men. This implies beedi industries are
not empowering women economically, but rather exploiting existing
social norms to pay unequal wages. These low wages to women have an
impact on the household economy especially in the case of the
household where women are the bread earners of the family.

14
Child labour in the beedi industry

A study released that more than 1.7 million children worked in Indian
beedi industries. Under Indian law, beedi rolling is defined as hazardous
work, so children are not allowed by the law to work in the beedi industry.
However, children are knowingly engaged by manufacturers who believe
that their nimble fingers are more adept at rolling cigarettes. Continuous
beedi rolling leads to the absorption of high doses of nicotine directly
through the skin. The skin on the children's fingertips begins to thin
progressively, and by the time they reach their 40s, they cannot roll
cigarettes anymore. They also have no legal or medical protection,
welfare, or state support.

A child works around 28 hours a week making approximately 11,000

beedis. More than 50% (around 0.85 million) of children suffer from
muscular issues, urine cotinine and respiratory disorders. 7% undergo
psychological disorders and more than 40% of children take leave from
schools to work in beedi factories.

Child labour is very

prevalent in the
beedi industry in
India.

The government should target to liberate all the children employed in

this industry. It should provide incentives to their parents to look after
their growth. They should aim at giving primary education to all those
children. It should improve the conditions of factories and make norms
that would reduce the health and occupational hazards to the workers. It
should aim at improving the compensation levels of workers. Moreover,
efforts should be made to ensure that all beedi workers are recognised in
official records and are issued Identity Cards so that they are able to get
access to schemes and welfare measures that are meant to protect
them. 15
I) Where the Industry is Concentrated in:
Beedi manufacturing first came to Bengal in the 1930s with the
establishments of many beedi factories. Since then, beedi making as a
significant occupation is presently found in the districts of Murshidabad,
Malda, Uttar Dinajpur, Coochbehar, Purulia, North 24 Parganas, Nadia
and Purba-Medinipur. Dakshin-Dinajpur, South 24 Parganas,
Bardhaman, Hooghly, Paschim-Medinipur, Bankura. Birbhum and
Howrah also have a fair number of beedi rollers. It is the beedi industry
that accounts for the major share of employment –more than 85% -in the
tobacco industry. Murshidabad has the largest number of beedi workers
in the state and many big beedi companies like Jahangir Beedi Factory
Private Limited, Shiv Beedi Manufacturing Private Limited etc. are
located there.
II) Production Process in West Bengal:
The beedi industry is a cottage industry and functions through a three-
tier system in which the workers, mostly women, are home-based and
they are provided with the materials for beedi rolling by the munshis
(middlemen), who are usually men. The munshis collect the beedis from
the workers and supply them to the factories. Technically, the beedi
factories are not factories but companies because production occurs in
the homes of the beedi rollers. Usually, the munshi visits a village and
the workers come to collect their supplies and also give him the beedis
they have made.

Murshidabad is the
biggest producer in WB.

16
 There is also a causal system of beedi work called the kena-becha system
(buying and selling), where munshis give beedis to small companies and
not to the big factories. The wages paid are lower than the agreed amount
for 1000 beedis. However, the big companies also buy these beedis
clandestinely from munshis and pay less than they would pay for beedis
from regular workers. Needless to say, they are sold at the usual rates and
the company makes its profit. Also, buying Kena-becha beedis enables
companies to keep their production costs low and evade taxes.

III) Various Policies in Place in West Bengal:

West Bengal as a state has always placed high emphasis on the welfare of
its labour force and has always come up with schemes and policy initiatives
to benefit them. The Labor Department of West Bengal is in charge of the
various policy initiatives launched by the State Government. The Labor
Department of West Bengal has for a long time focused on special
protection for specific classes of workers like women, children and beedi
workers.
West Bengal has a large number of beedi establishments employing a
large number of beedi workers, who are considered to be one of the most
vulnerable sections of workers amongst the informal sector workers. There
are about 90 registered manufacturers of major beedi brands involved in
bulk production in West Bengal and the estimated number of workers is
20 lakhs. Most of the beedi workers work from their houses and more than
70% of them are women workers.

The Central and State governments, over the years, have enacted
legislation and policies aimed at monitoring working conditions and
providing social security benefits for the welfare of beedi workers.

With a view to improving the living conditions of the beedi workers, the
Government of West Bengal has introduced the West Bengal Beedi
Workers Welfare Scheme. Under this scheme, a beedi worker is entitled to
a uniform subsidy of Rs.20,000 per beedi worker, in addition to the central
grant for the construction of houses. The amount of Rs.20,000 is released in
two equal instalments.

The Scheme also has the following primary objectives:

i) Providing electricity connection to the houses of Beedi Workers. 17
ii) Construction of houses for individual workers.
iii) Providing for infrastructural facilities like goods roads, water supply, and
sanitation in groups/cluster housing.

In addition, to the above scheme self-employed or wage employed beedi

workers in West Bengal are also included in the State Assisted Scheme of
Provident Fund for Unorganised Workers (SASPFUW).
Central schemes such as The Beedi and Cigar Workers (Conditions of
Employment) Act, 1966- which aims to provide for the welfare of the
workers in Beedi and cigar establishments and to regulate the conditions
of their work and for matters connected therewith. It provides coverage
regarding daily hours of work, weekly rest, leaves with wages, maternity
leave, benefits and The Beedi Workers Welfare Fund Act, 1976 have also
been strongly implemented by the Government of West Bengal.

The Government of West Bengal has also introduced the Kanyashree

Scheme to end Child Marriage. The scheme has two components, namely,
Annual Scholarship of Rs. 500 and One times Grant of Rs. 25,000. The
Annual Scholarship is for unmarried girls aged 13-18 years enrolled in
classes VIII-XII in government recognized regular or equivalent open school
or equivalent vocational/technical training courses. The One-time Grant is
for girls who are 18 at the time of application, enrolled in government
recognized regular or open school/college or pursuing vocational/technical
training or sports activity or is an inmate of Home registered under J.J. Act
2000. This scheme has also benefited many families that work in the beedi
industry in the state, especially young children that otherwise are
employed in the beedi industry.

Child Marriage is the most

prevelant in West Bengal.

18
IV) Problems with the Above Policies:
There is a complete lack of information about the registration process
and entitlements. There is much confusion amongst workers regarding
the different kinds of documentation they have and the specificities of
their entitlements. There are also no programs implemented by the
government to ensure that workers are aware of their entitlements, and
the procedure for securing them. There is also a lot of confusion among
the workers regarding the beedi card, no one has given any information
about the period of validity of cards and renewal processes if any.

Many beedi workers have beedi cards issued by the Department of

Labour, GOI, which enable them to access different entitlements. There is
no clarity amongst beedi rollers whether the documentation is done for
individual workers or families. It appeared that the head of the family
logic has been followed and mostly beedi cards and PF registration have
been for men.

The Kanyashree Scheme has also been ineffective in helping the girl
child since the Rs. 25,000 grant from Kanyashree is often used to buy
jewellery for their wedding. They feel it makes far more sense to spend
that money on wedding jewellery than spend it on further education or
training. This is not an unusual story in West Bengal –the use of
Kanyashree money for buying wedding jewellery is reported from various
parts of the state.

V) Issues Faced by the Beedi Workers of West Bengal:

a) Wages-
The nationally accepted wage rate is Rs 169 for rolling 1000 beedis. In West
Bengal, representatives of the Labour Commissioner, and the Trade Union
have held talks to ensure that the wages are increased every year. The
present wage being paid is Rs 126 per 1000 beedis. Factories explain this as
Rs 105 + Rs 21 for the bonus. Workers are paid for 950 beedis and not 1000.

In practice, workers are duped by munshis through a high rate of rejection

of beedis. No wages are paid for the rejected beedis and the rejected
beedis are either taken by the munshi or sold in the market at a lower rate.
This rejection allows the munshi to pay the workers less than they deserve.
Often, munshis also give workers
19
 b) Health Problems-
The nature of the work of beedi rollers involves prolonged sitting with the
trunk bent forward and the constant use of fingers. Workers have
reported health problems like calluses in hands, fatigue in the arms and
numbness in fingers. Constant exposure to tobacco dust results in
respiratory irritation. Tuberculosis and bronchial asthma among beedi
rollers are mainly due to the dust they inhale.

c) Children’s Education-
It is an established fact in India that children from poor families, more so
girls, are kept away from school if more hands are needed at home. Also,
people often feel that education does not really give them more
opportunities. Children begin helping with beedi rolling from the time
they are five or six years old. In this regard, Kanyashree Scheme has been
ineffective in promoting education and training for the girl child, since
families think it makes far more sense to spend that money on wedding
jewellery than spend it on further education or training.

Munshis/ sattedars dupe beedi

workers and cut down their
wages dramatically through high
rates of rejection; a problem
common to WB and MP.

VI) Suggestions for West Bengal:

a) Proper documentation of each worker is needed-
Workers are deprived of their entitlements to Provident Fund and pension
because of lack of proper documentation. Every adult worker must be
registered in her own right and not seen as part of a family unit. This will
enable each worker to access her benefits.

b) A direct relationship between manufacturers and workers is needed-

A direct relationship has to be established between the manufacturer and
the worker. A worker must know if she has a single or multiple
employer(s). Manufacturers have to own their responsibility to
beedi rollers – 20
providing good quality raw materials in sufficient quantities, stopping
arbitrary rejection, providing correct documentation, paying correct
wages and meeting all legal obligations regarding entitlements and
benefits.

c) Providing Alternative job opportunities-

More job opportunities have to be created so that people can choose.
Rolling beedis cannot be the only wage work available. Other jobs will
also increase the mobility of women as they travel outside their homes
on a daily basis. The idea that the beedi industry is a benevolent industry
because it allows women the ‘safety’ to work in their homes must be
challenged.

the beedi workers should not be

left at the whim of
munshis/sattedars. There needs
to be a better system of
accountability in place.

21
I) Overview of the State:
Tamil Nadu is a key state when it comes to the production of beedi in
India. Tamil Nadu has for a long time worked to ensure that beedi
workers in the state are able to benefit through various schemes
launched by the Central Government. While there has been an overall
increase in the number of beedi workers nationally in India, Tamil Nadu
has seen a steep decline in the number of beedi workers.
Tamil Nadu has around 75 large-scale beedi manufacturers producing
50,00,000or more beedis a day, and some 500 small manufacturers
producing 500,000-50,00,000 a day. In the beedi industry, a large
number of unregistered and home-based enterprises coexist with
factory-based manufacturing enterprises.
In Tamil Nadu, with the emergence of newer job opportunities with
better wages and increased urbanisation, and with higher literacy rates
fewer children are now following their parents’ footsteps into the beedi
industry.

II) Problems the Beedi Industry in Tamil Nadu is facing:

a) Loss of Market and low wages-
Beedi manufacturers in Tamil Nadu are moving their manufacturing
activities to West Bengal due to rising wage costs, labour shortages and
central and state government policies. Business worth of Rs 15-20 crore has
shifted from Tamil Nadu to West Bengal, even though the industry resorts
to a 7-10 per cent price increase every year to protect profit margins in the
face of rising costs. Manufacturers now get beedis packed in Tamil Nadu or
even ship them directly from West Bengal to markets in the northern
states. The wages in West Bengal, for rolling 1000 beedis, are lower by
almost 50% & thus manufacturers gain by at least 20 per cent per 1000
beedis.
b) Loss of labour-
Another major issue that Tamil Nadu’s beedi industry has been facing 22
in the past three to four years is the shortage of labour which has affected
 the production by 20 % in the past three years.
c) Lack of demand-
There is a dip in the demand for beedis over the years in Tamil Nadu. The
reasons cited for the reduced demand include the younger generation
moving towards cigarettes, greater awareness about the ill effects on
health and the penal provisions against smoking in public places among
others.

III) Various Policies in Place in Tamil Nadu:

The Government of Tamil Nadu has been working in tandem with the
Central Government for the successful implementation of schemes to
benefit the beedi workers.
The Revised Integrated Housing Scheme, 2007 for beedi workers is
being implemented through the Welfare Commissioner under the
Labour Welfare Organisation of the Union Ministry of Labour. The unit
cost of each dwelling unit is Rs.45,000/-. The Government of India
provides a subsidy of Rs.40,000/- to the beneficiary. The beneficiary is
expected to contribute Rs.5,000/- as his share. The Government of Tamil
Nadu is giving Rs.5000 per house as a subsidy, therefore the beneficiaries
do not have to bear anything.
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
which aims to provide for the welfare of the workers in Beedi and cigar
establishments and to regulate the conditions of their work and for
matters connected therewith. 2,36,138 beedi workers (industrial and
home workers) are engaged in 1,554 beedi establishments in the State.
The scheme provides for coverage regarding daily hours of work, weekly
rest, leave with wages, maternity leave, benefits and welfare amenities
such as drinking water, toilet facilities, canteen is also being implanted by
Tamil Nadu.
The Beedis Workers Welfare Fund Act, 1976 has also been implemented
by Tamil Nadu; it has resulted in the creation of the Beedi Workers
Welfare Fund (BWWF) for the welfare of home-based, informal beedi
workers. The BWWF is administered by the Labour Welfare Organisation
(LWO) under the Ministry of Labour and Employment and is financed
through a levy of cess by way of excise duty on manufactured beedi,
which is revised periodically by the Central Government.

23
 There are programmes for the children of beedi workers which aim to
provide financial assistance to school going children for purchase of dress,
slates, notebooks and textbooks. There are scholarships for children from
class V onwards up to college ranging from Rs 500 to Rs 8000 per child.
There are also scholarships for beedi workers and girl children for
attendance in schools and colleges as also special incentives for good
academic performance where scholarships are provided.

IV) Problems with the Above Policies:

a) Lack of awareness-
A majority of the workers remain unaware of these legal enactments and
schemes. There are no efforts seen by the state or centre to popularize
these schemes and generate awareness about the schemes among beedi
workers. Many of the women workers are not aware of the Beedi Workers
Welfare Fund and the benefits they could access from it.

b) Lack of documentation-
To receive welfare benefits and funds workers must have an ID card issued
to them by the employee or a local authority of the Labour Welfare
Organisation of the Ministry of Labour. The identity card should have a
photo of the worker on it. If the employer does not issue such a card, they
can be fined up to Rs. 2000. In spite of this many employers do not issue
identity cards as this legitimizes the status of the worker as an employee.
The majority of the beedi workers do not have the identity cards, to be
issued by the employer, which is necessary for them to access the welfare
fund and other schemes of the government. The employers try and avoid
issuing them an identity card because then they would have to be
provided with all the statutory benefits including PF and gratuity.

Despite regulations in place to

ensure the issuance of ID cards,
the majority of the workers do
not possess one. There is a need
for better implementation of said
regulations.

24
V) Issues Faced by the Beedi Workers of Tamil Nadu:

a) Rejection and Loss of Wages-

Women have to go to the respective beedi company (which is like a store)
to obtain work and their wages. Generally, when the employers supply the
material for 1000 beedis, the material is not enough and usually, there is a
deficit of 200-300 beedis. The workers have to fulfil the shortfall of raw
materials on their own. It’s usually the tendu leaves that have to be bought
in order to replace the missing material so that they can roll and deliver the
required number of beedis. A very common practice in the industry is the
large rate of beedi rejection, by the checker at the company store, on
grounds of poor quality. The reasons for rejecting the beedis include not
putting sufficient tobacco in the rolled beedis, holes in the leaves end not
being properly sealed, insufficient drying, tying the beedi roll loosely and
colour of the rolled beedi among others.

b) Minimum Wages not being revised on time-

Union leaders, management representatives of the beedi companies and
officials from the state government labour department sit together, every 3
years, to decide the quantum of increase in wages. But the meetings don’t
take place in the stipulated time mostly due to lack of participation from
the beedi companies and therefore now the wages are being revised every
3.5 years. Once there is an agreement regarding the new minimum wages
than a Government Order notifying it is brought out, for which there is
again a delay of around one year sometimes. In the meantime, the
companies again shy out from giving the new wages citing its non-
notification by the state government.

c) Poor Living Conditions-

The households, being poor, generally inhabit one-room houses or small
huts, which are ill-equipped with respect to air, light and water. For women
who work at home in small huts with very little ventilation, the tobacco
dust remains in the home where women and their families eat, sleep and
spend their entire time.

25
VI) Suggestions for Tamil Nadu:
a) Generation of awareness-
The Government of Tamil Nadu must ensure that workers are aware of the
basic policies and schemes that have been launched for them. Since a lot
of workers in Tamil Nadu are not aware of the schemes and policies in
place for them, they are often exploited by the beedi companies.

b) Alternate sources of employment-

Already the emergence of newer job opportunities with better wages and
increased urbanisation and education levels are increasing; fewer children
are following their fathers or mothers into beedi-making. With all its
potential, Tamil Nadu can easily create better opportunities even for its
unskilled labour. Its tourism sector can be exploited more for the same.
Also, while the State Government has taken strong steps to discourage the
use of beedi and tobacco, it must note that with lakhs of workers in Tamil
Nadu and millions across the country, any move towards the banning of
tobacco products and discouraging tobacco use must begin with finding
and promoting alternatives for workers involved in this industry. The failure
to do so would not only create social problems but will also be an
infringement on the right to livelihood of these workers, and the
responsibility for the same lies with all the stakeholders particularly the
beedi company owners, the state labour welfare department, trade unions
and the civil society among others.

Tamil Nadu can

expand its tourism
industry and create
job opportunities in
the same.

26
I) History and evolution of the beedi industry in
Gujarat:
In the 1930s, after Gujarat started cultivating tobacco, beedi manufacturing
began in this state in Kheda district. Due to a network of canals being built
to facilitate irrigation, local farmers switched to cash crop production,
especially tobacco. Today Gujarat is the primary producer of tobacco in the
country with the largest share (80%). Being the heart of tobacco production
Gujarat lent easily to the mushrooming of beedi factories in Ahmedabad,
Patan and Palanpur in North Gujarat and in Surat and Bilimora in South
Gujarat. When the Gujarat government implemented the Factories Act in
1952, the beedi companies shifted their manufacturing across the border to
other states such as Rajasthan, Andhra Pradesh and Madhya Pradesh
where employers mainly employed home-based workers. The remaining
manufacturers in Gujarat also followed suit and shifted into home-based
production. Tobacco continued to be produced on the scale in large work
sheds. Mechanization took the place of manual work in cutting, grinding
and sieving reducing the workforce by half. With 92,000 ha of land under
beedi cultivation, Gujarat had the largest share of area, production and
productivity of the crop in the year 1995-6.

II) Policies protecting bidi workers in Gujarat:

The Self Employed Women’s Association (SEWA) initiated its path to success
in the field of beedi legislation in Gujarat, in the 1970s. Gujarat was the main
hub of beedi manufacturing due to good irrigation facilities.

Ahmedabad, Patan
and Palanpur produce
beedis in North Gujarat
and Surat and Bilimora
in the South.
27
 SEWA also helped the bidi workers in advocacy initiatives and campaigned
for provident fund coverage for them. Under beedi welfare legislation, an
administrative office and health centre were established in Ahmedabad.
From this point on, large numbers of workers and their children enjoyed
access to benefits. In 1987, the Government of India approved a housing
project for bidi workers in Ahmedabad. The Housing and Urban
Development Corporation (HUDCO) provided financial assistance, the
Ahmedabad Urban Development Authority (AUDA) provided land, and the
Beedi Workers’ Welfare Cooperative bridged the gap through subsidies. As
a result, 110 women beedi workers received houses in 1993. With the
implementation of the Factories Act in Gujarat in 1952, the production
moved to states with fewer labour-related restrictions such as Telangana,
Rajasthan and Madhya Pradesh. A cooperative in Vadnagar, Gujarat was
also set up but was largely unsuccessful.

The most recent amendment to The Beedi and Cigar Workers (Conditions
of Employment) Act, 1966 in Gujarat has been in 2015, in which some of the
labour laws were amended. In Gujarat, the piece rate is linked to the
dearness allowance (DA), which is further linked to the price level changes
in the Indian economy. The DA revisions are announced by the
Government of Gujarat every six months. The Dearness Allowance ensures
that Beedi Workers’ wages are in line with the changes in inflation. It is
given on top of their mandated government wages and acts as a safety net
that protects them from price changes and helps satisfy their basic wants.
92% of the 50,000 beedi workers have been issued identity cards.

III) Analysis of the policies protecting bidi workers

in Gujarat:
In Gujarat, the earnings of the home workers are lower than that of the
industry workers. Homeworkers earn Rs.12.7 while industry workers earn Rs.
18.3 as minimum wage on average. All beedi workers need to be equally
protected by the beedi legislation and policies.

The rejection of beedis, unpaid beedis and provision of poor quality and
insufficient tendu leaves are ways in which the payment of minimum
wages are averted. The minimum wage policies are not being adhered to
via these loopholes. 28
 The top families in power in the beedi industry in Gujarat are known to
evade policies and legislative provisions while running their beedi
kingdoms, and benefits such as Provident Fund, medical insurance are
very rarely provided to the workers.

IV) Suggestions for beedi policies in Gujarat:

Gujarat still has a comparatively lower minimum wage rate (Rs. 20.7) and
this is why beedi manufacturers prefer to operate out of Gujarat. The
minimum wage should be raised for both industrial and home-based
beedi workers. The efforts of SEWA and other policies need to move
beyond Ahmedabad to all parts of Gujarat. The ‘sale purchase method'
used in Gujarat has a high scope of mismanagement and exploitation of
the poor labour force. The sale-purchase system is that in which the home-
based worker purchases the raw materials from the company or the
contractor and then sells the finished product back to the company or
contractor. The worker in the sale-purchase method is paid an amount that
is equal to ‘wages’ prevalent in the other systems.

This sale purchase method needs to be regulated and overseen by

independent committees. ‘In the books, it is shown that the worker buys
raw material from ‘Company A’, while they give the prepared beedis to
‘Company B’, ‘Company C’ does the packaging and ‘Company D’ does the
marketing.

All these companies are “on paper” only and their owners are all from one
family itself. This system is adopted so that the workers can be defined as
“own account “workers and employer-employee relationships cannot be
established. This way the employers can evade the labour laws.’
Source: Reported in a public hearing organised by SEWA and National
Commission for Women in 2005.

The cooperative system needs to become more prevalent and more

solidified so as to provide workers with a way to ensure they get their
minimum wages and are provided with the services that the state has
guaranteed on paper.

29
I) History and evolution of the beedi industry in
Karnataka:
Karnataka, a hub of tobacco cultivation and beedi manufacturing, has been
in the limelight of beedi legislation. In Karnataka, beedi tobacco accounts
for 65 per cent of the total tobacco area. Beedi tobacco from Belgaum and
Bellary districts is famous for its quality as it is grown in medium black or
red soil. Dakshina Kannada district is the major beedi producing centre in
the state representing a space with the highest concentration of beedi
production.

II) Policies protecting bidi workers in Karnataka:

The number of beedi workers in Karnataka is officially estimated at 3.6 lakh,
2.5 lakh of whom are in the Mangalore region alone. Others (the unions and
NGOs) say the actual number of beedi rollers would be at least four times
more since most beedi workers do not have identity cards. Further even
where the worker has an ID card, the other family members who roll beedis
do not have the ID cards and do not get counted.

The biggest problem in Karnataka is a new form of production relation

termed ‘udaffi’.

It means bearing ‘no allegiance to any person or company. In the udaffi

relation, the workers tend to be linked with different companies and
contractors. They have either direct or indirect links along with formal or
informal relations with companies and contractors. All types of
permutations and combinations are established in udaffi relations. This
arrangement ensures that a worker is engaged throughout the week but
does not guarantee minimum wages.

30
 Karnataka has 2,45,691 beedi workers out of which 2,31,943 have identity
cards (94.4%).

In Karnataka, the State government has been motivated to think of a state-

wide action plan in support of the beedi women. The International Labour
Organisation (ILO), in October 2003, held a high-level state meeting in
Bangalore in cooperation with the Department of Labour, Karnataka to
advocate for a statewide programme to promote skills diversification and
livelihood options for workers dependent on the beedi industry. Maternity
benefits are also provided to beedi workers. The minimum wages in
Karnataka are Rs. 29.3, comparatively higher than other states.

III) Analysis of the policies protecting bidi workers in

Karnataka:
Despite minimum wages being fixed as per the Minimum Wages Act 1948,
the bidi industry in Karnataka refused to pay the mandated amount, taking
the fight all the way to the Supreme Court. The legal battle went on for ten
years and in the interim, the industry signed an agreement with many
trade unions settling for an amount that was less than the mandated
minimum wage at the time. The employers argued that paying the
minimum wage would’ve been financially disastrous to them and would
force them out of business. CWM points out that this is wrong on two
counts: one, the Minimum Wages Act negates any agreement that allows
an employee to settle for an amount below the minimum wage and two,
Justice Gajendragadkar of the Supreme Court was unflinching in his
statement that “No industry has a right to exist unless it is able to pay its
workmen at least a bare minimum wage”. In the end, the Supreme Court
case was never heard as a settlement was signed in 2007 where employers
agreed to pay minimum wage and paid out Rs 4500 as arrears for the
previous decades’ exploitation.

The LWO undertook

measures to provide
training to beedi workers
in alternate vocations in
Karnataka; The Hindu,
2018.
31
IV) Suggestions for beedi policies in Karnataka:
There have been many protests by beedi workers to meet the demands of
the matter of dearness allowances in Karnataka. Also, there are large
discrepancies in the data and statistics regarding beedi workers in the
state. This needs to be fixed as the first step towards fixing a problem
needs to be understanding it accurately. The Beedi Workers Welfare Fund
has been set up to provide access to health care, scholarships, education of
children and housing. This access is based on identification cards and
passbooks issued to beedi women workers. While registered
manufacturing of beedis is going down, unregistered manufacturing is on
the rise resulting in fewer beedi workers having access to any welfare
facilities. The benefits of these funds and schemes need to reach all beedi
workers, and for this, local bodies and self-help groups need to ensure that
all beedi workers are registered.

Workers protesting for

dearness allowance

32
I) History and evolution of the beedi industry in Bihar:
Bihar is also a large producer of beedis as its forests have a large amount of
tendu leaves. Bihar has become a common beedi manufacturing hub due
to low labour and low transport costs. It also has a largely unregulated
legislative sector in the sphere of unorganised and unregulated
occupations such as the beedi industry.

In Nalanda district alone, 45,000 workers, including women and children,

are crammed into the 'godowns' - abandoned houses and dark dingy holes
surrounded in dirty surroundings. Though most political parties have set up
beedi workers' unions in the state, it was left to S.K. Lal, a Nalanda district
magistrate, to take up their cause. Lal ordered the local Labour Department
officials to conduct a census of the workers and a survey of their living
conditions. Over 20,000 of the workers were below 14 years in age.
The workers were being paid Rs 3.50 to Rs 4 per thousand beedies as
against the stipulated Rs 6.65. Unable to take action against the
manufacturers because their headquarters were situated outside the
district, Lal sent a strongly worded letter to the labour commissioner which
warned of "serious developments" if the Government failed to help the
beedi workers. Lal's letter had immediate effects. The commissioner called
a state-level meeting and new wages at the rate of Rs 10.60 per thousand
was fixed. The proprietors agreed only to Rs 8, but even that decision wasn't
implemented. Despite Lal's efforts, the situation remains as it was.

Despite a beedi workers

union in the state,
districts like Nalanda
having 45,000 workers
lack housing.

33
II) Policies protecting beedi workers in Bihar:
To bring women working in the unorganised sector under one umbrella,
the Bihar government is aiming at establishing 10 lakh Self Help Groups
(SHG) and connecting 1.5 crore women through them. The Jeevika scheme,
officially known as the Bihar Rural Livelihoods Project (BRLP) enables
women workers and their children to avail benefits like maternal care,
healthcare, loans, education, recourse for domestic violence, etc. Though
various schemes and acts have been drawn up by the Government to
improve a lot of workers, the schemes have rarely been implemented. A few
months before the ouster of former chief minister Jagannath, he had
announced some - minimum wages at the rate of Rs 8.65 per 1,000;
scholarships for their children at Rs 50 per month; and the construction of a
20-bed hospital.

SHGs have been established

to help women from the
unorganised sector.

III) Analysis of the policies protecting beedi workers in

Bihar:
Bihar has 2,61,000 beedi workers and 2,55,876 workers have been issued
identity cards (98.0%). Maternity benefits are not available for beedi workers
in Bihar. Bihar is known to be a low performing state in institutional delivery
and government welfare scheme delivery. Research studying the health
problems of 197 female beedi rollers in Patna, Bihar, India showed the
effects of beedi rolling on their health. The study found that more than 70%
of the beedi rollers suffered from the eye, gastrointestinal and nervous
problems while more than 50% of the respondents suffered from
respiratory problems, mostly throat burning and cough. There are no
medical resources or maternal benefits provided to beedi workers. There is
no access to creche and child care systems as well.

34
IV) Suggestions for beedi policies in Bihar:
The well-established self-help group network needs to be tapped to
provide maternity and healthcare requirements to women beedi workers.
There needs to be more research in terms of people employed in this
sector and the wages received by them. A well-established committee to
provide provident funds needs to be set up. Data about beedi workers
needs to be documented. Bihar is one of the states that have the least
information about its unregulated sectors and this needs to change for
the beedi workers, especially the women, to get access to benefits
schemes, funds etc.

The unorganised sector of

the beedi industry sees a lot
of violations of the Child
Labour Act, 1986.

35
I) Overview of the state:
Kerala has been one of the leading producers of beedi in South India.
Kannur, Kozhikode and Kasargode are the three northern districts of the
state where the majority of beedi workers reside. A leading cooperative that
controls most protocols and procedures for beedis in the state is Kerala
Dinesh Beedi which was established in 1969 as a result of workers'
resistance against the exploitation of private capital. The total number of
workers employed in Kerala in 2000 was 1,36,416 out of which only 1,12,887
had been issued ID cards to avail social security benefits. Recent figures are
unknown but it is assumed that the numbers would have only gone up
with even lesser workers being issued with ID cards.

II) State level provisions:

The data regarding COTPA is more regularly documented as compared to
the other states. This shows proactiveness on part of the government. From
2013-2019, the number of violations of the COTPA has risen by great
margins, declining only in 2015. In 2018-19, Kerala saw 918 cases of violation
of section 6 of the Act. As of 2019, the number of cases of violations of
COTPA stood at 235. Kerala sees a maximum violation of section 4 which
prohibits smoking in public places. For 2020 (up to October), this number
stood at 38601.

The Beedi and Cigar Workers (Conditions of Employment Act), 1996

prompted beedi manufacturers to shift production to Karnataka. Seeing
the loss of livelihood of beedi workers so caused Kerala Dinesh Beedi, a
central cooperative society, was established which helps beedi workers to
diversify their product line from beedis to other commodities such as
coconut products, cashew products, garments, computer training courses
etc.

36
 For the past few years, the industry has been on a decline in the state.
Dinesh Beedi looks to provide employment to beedi workers, especially
women. Apart from this, the state has reinforced central rules and laws
such as the Minimum Wage Act. Under the Maternity Benefit Act 1961,
women workers are given a maternity holiday in most districts of Kerala.

In 2018, the state government remitted a sum of Rs. 20 crores to help

rehabilitate the beedi workers who had been losing their livelihood. This
money was to be used by the workers to start their own ventures in
poultry farming, stitching centres, mobile recharge centres, fancy shops
and such ventures.

The lockdown had an opposite effect on the sale of beedis in Kerala then
it did in the rest of the country. While the sales dropped in the rest of
India, the sale of beedis in Kerala spiked up. Kerala also has comparatively
more alternate employment opportunities by virtue of having developed
itself in the non-farm sector. However, there is still scope for more
diversification to ease the beedi workers into finding an alternate source
of employment easily.

III) Issues with state legislation:

a) Evasion of protocols-
For a female worker to claim her
maternity benefits, she would need
to be recorded. Many small
manufacturers do not employ
women workers but this is just a
strategy to deny them the payment
of maternity benefits.

b) Minimum Wage rate- NGOs can take up the job of

generating awareness among
The minimum wages as of April the beedi workers such that
2021 for the beedi industry is Rs. 275 they can avail their benefits
completely.
for rolling 1000 beedis per day the
whole of which is often not paid
because only a ‘skilled’ beedi worker
can make 1000 beedis in a day. 37
 Moreover, owing to the crisis in the industry, the workers do not get paid as
often. Thus, the workers need an alternate source of employment to make
ends meet for which Kerala has immense potential.

c) Health Facilities-
In 2011, the State released a new medical insurance scheme for beedi
workers. Kerala Beedi and Cigar Workers Welfare Fund Board handed out
smartcards to the beedi workers that were below the poverty line under the
newly released scheme. The card-holders could avail themselves of medical
insurance benefits up to Rs. 75000. Unfortunately, not many beedi workers
were aware of the scheme and could thus, not avail of its benefits.

IV) Suggestions:
a) Education of workers and alternate sources of employment-
Kerala has the highest literacy rate in the whole of India and therefore,
great opportunities to undertake schemes and programmes for the
education of the beedi workers. This would enable them to become self-
sufficient and find or even generate alternate employment opportunities.
Training them in the basics of technology will enable them to find
employment in the IT sector as well.

b) Generation of awareness-
Despite schemes in place for the benefit of the workers such as those for
health facilities and funds, most workers are unable to avail their benefits
due to lack of awareness. KDB itself needs to take initiative to educate all
the workers falling under its jurisdiction about the various schemes and
policies put in place by the government for their benefit. Government-
backed and private NGOs can take this initiative as well.

Kerala Dinesh Beedi has been

helping beedi workers to
diversify their employment
opportunities into areas such
as foods and clothing.

38
V) Positives versus negatives of the state:
The state legislation in place for the beedi workers in Kerala ensures that
they are able to sustain themselves with the bare minimum. The
government has provided for health benefits and has also promised the
delivery of minimum wage rates.

However, it needs to create more awareness amongst the workers so that

they are able to avail the benefits put in place for them. Dinesh beedi is
helping the workers divulge into alternate sources of employment and
should thus be aided in the same.

KDB has regulated the

systems under which most of
the beedi workers work. It can
also undertake an awareness
campaign which helps the
workers to know about the
benefits in place for them.

39
I) Where the Beedi industry is concentrated in:
The Beedi industry in Madhya Pradesh started its beedi production in 1902
in Jabalpur. The beedi industry is the second highest employer in Sagar
district and this district has the largest number of beedi workers in Madhya
Pradesh at 30%. Satna and Jabalpur are the second-highest employing
regions at 28%. The total number of beedi establishments is 530 with the
employment of 1,40,575 workers but recent numbers have not been
disclosed. Beedis are also produced in Damoh, Rewa, Panna, Chhatarpur
and Gwalior.

II) State Provisions for the Beedi industry:

The roots of the bidi industry in Madhya Pradesh are in the Bundelkhand-
Mahakaushal regions, extending from Sagar and Jabalpur. This region
manufactures the most beedis in the state. In 2018, the Madhya Pradesh
government was urged to implement the tobacco vendor licensing rules to
prevent indiscriminate selling of such products and to impose a strict rule
against the sale of tobacco near educational institutions. Despite all the
urges, a total of 158 people were recorded as defaulting the section 6 of the
COTPA which deals with the sale of tobacco near schools.

Seeing such evasion of legislation, new rules under the COTPA which were
notified on Dec 31 2020 were implemented in Pan-India in February 2021.
These rules have been said to be the beginning of the end of this Small
Scale Agro-based Industry. According to said new rules, Beedi
manufacturers would not be allowed to display their brand names on their
packaging and retailers are prohibited from displaying such products
openly. Moreover, the sale of loose bidis have been banned and every
bundle of bidis must have at least 25 bidis with MRP written on them.

40
 All the beedi sellers would also have to get themselves registered under
the COTPA, failing to do so will result in a hefty fine and even jail terms.
In 2018, the state government remitted a sum of Rs. 20 crores to help
rehabilitate the beedi workers who had been losing their livelihood. This
money was to be used by the workers to start their own ventures in
poultry farming, stitching centres, mobile recharge centres, fancy shops
and such ventures.

In April 2020, the Jharkhand government placed a ban on tobacco

products such as beedi, cigarettes, pan masala, etc.

III) Labour laws in state for the Beedi industry and their
effectiveness:
A number of central and state government policies and legislations have
been put in place to monitor the working conditions of beedi workers and
for their welfare through social security benefits. Besides existing labour
laws like the Minimum Wage Act and the Provident Fund Act, some
legislations have been put in place by the government pertaining
specifically to the beedi industry workers. The Beedi and Cigar Workers
(Conditions of Employment) Act, 1966 provides for the welfare of workers
in beedi and cigar establishments and regulates their working conditions.
The Beedi Workers Welfare Fund Act, 1976 resulted in the formation of
the Beedi Workers Welfare Fund (BWWF). The BWWF is administered by
the Labour Welfare Organisation (LWO) under the Ministry of Labour and
Employment. It is financed by levied on manufactured beedis which
applies only to registered companies rolling more than 2 million beedis
annually. This exemption causes the exclusion of the large number of
beedi workers that roll beedis for smaller, unregulated companies but are
not eligible for benefits and entitlements.

Additionally, a number of schemes for the benefit of beedi workers have

been enforced through the BWWF such as educational scholarships,
housing facilities, free treatment and medicines, insurance for death and
accidents, etc.

41
 The workers need a
registration card to access
most of the schemes put
in place for them.

The Madhya Pradesh Beedi and Cigar Workers (Conditions of

Employment) Rules, 1968 provides for the working conditions of the
workers. This includes cleanliness, ventilation, availability of toilets, creches,
washing facilities and disclosing of working hours and holidays.

IV) Issues with these policies:

a) Non-adherence to minimum wage rate-
The minimum wage rate as of 2020 for beedi making in Madhya Pradesh is Rs.
96.28 per 1000 beedis. This is the least wage rate in the entire country.
Moreover, most of the workers aren’t able to receive the entirety of these
wages either as they have a shortage of the raw materials provided to make
1000 beedis. This forces them to buy raw materials out of their own pocket. In
addition, there is the rejection of beedis by the sattedar which means the
workers get all the less amount of wages. Despite the segregation between
‘good’ and ‘bad’ beedis, both types are kept. In reality, not every worker can
produce 1,000 beedis in a day, and the ones who do may take 10-12 hours.
The minimum wage rate needs to be regulated by the government and fixed
at a higher price in order to ensure that a basic minimum level of income is
received by the workers.

b) Health Facilities-
As of 2016, MP had 36 dispensaries, mobile vans and a 30 bedded hospital in
the state exclusively for beedi workers. Even with such meagre facilities, the
workers complained of lack of services. There was only 1 doctor appointed on a
regular basis and a shortage of medicines and diagnostics. Therefore, workers
are forced to go to other government hospitals which are crowded and time-
consuming. This reduces the wages they could have otherwise made.
42
c) Lack of documentation-
Out of the documentation required for availing social security and welfare
benefits, while most workers do tend to have a card to access welfare
schemes, they do not have a registration ID that links them to a company.
This deprives them of social security benefits like Provident Fund and
pension. In order to get a registration ID, a worker has to be certified by the
factory that they have rolled 5,600 beedis per month for 2 months.
However, in practice, most workers do not have such registration.
Additionally, the workers who work in unregulated companies do not get
registered at all and it’s a fact that most of the beedi industry operates
unregulated. There is a need for better regulation of registrations. More
companies should be brought under the purview of regulation so that the
workers are able to avail the benefit of basic schemes and policies.

d) Unawareness of beneficial schemes-

Most workers are not aware of the schemes put in place for them by the
BWWF. Schemes like the housing scheme had problematic conditions such
as the land for the house being in the name of the worker and the worker
having to deposit Rs. 5000 as security. This led to it not being utilised. To
enable the workers to utilise the benefits put in place for them to the
maximum, there is a need for more transparency and education. The
companies should circulate notices giving details about the
aforementioned schemes and conduct workshops by the BWWF for their
education.

Due to the lack of raw

materials provided,
workers have to buy their
own raw materials.

43
V) Suggestions for Madhya Pradesh:
a) Alternate sources of employment-
The beedi industry has provided employment to lakhs of people from
economically backward regions. The coronavirus triggered lockdowns
and economic recession have had an adverse impact on the industry as
it is. With a lack in the availability of alternate employment opportunities,
the dying of this industry will result in a gigantic surge in the
unemployed population. As per a report conducted in the Bundelkhand
district of MP, there is a lot of scope for the generation of rural
employment opportunities which can provide an alternate livelihood to
the beedi makers. Strengthening extension services related to
agriculture and livestock can create a few opportunities in the
agricultural sector itself. Employment can also be generated in the IT
sector as there is a need to process the raw information available on the
radio and internet and present it in a comprehensible and legible form.
But this would also require a surge in educational opportunities and the
establishment of measures to reduce the amount of child labour
employed in the beedi industry. The Sanitary napkins industry is another
industry in which employment can be generated provided it gets
enough marketing support.

b) Generation of awareness-
Lack of awareness about the various policies and schemes puts the
workers at a huge disadvantage and allows the authorities to get away
with spending as least as possible for the benefit of the workers. NGOs
need to go out and educate the beedi workers about the legislation put
in place to help them through workshops.

c) Better accountability for registrations-

Companies need to be held accountable for the issue of registration IDs
so that workers can get their rights under social security schemes.
Uniform and transparent registrations need to be put in place instead of
leaving the workers at the whim of authorities like sattedaars. Even
government-backed NGOs could take up the initiative of helping
workers through the registration process.

44
VI) Positives versus negatives of the state:
Madhya Pradesh has a lot of state legislation in place for the benefit of
beedi workers however, due to lack of awareness they aren’t able to reach
the targeted population. Moreover, beedi workers face a lot of
exploitation since most of the procedures are at the whim of the
sattedaar. With proper enforcement of the policies, legislations and
schemes in place for the Madhya Pradesh beedi industry, the beedi
workers can achieve a position in the society much better than they are
now. There is also a lack of alternate sources of employment. With the
predicted decline of the industry, it is becoming increasingly imperative
that the beedi workers find an alternate source of employment to
support themselves to the bare minimum. If possible, the state
government should conduct training to help the workers develop skills
suited for other industries as well.

There needs to be proper

regulations in place so
that the beedi workers
receive enough raw
materials and they do not
have to spend from their
already small enough
pockets,

45
I) State Provisions for Beedi and Tobacco:
In 2015, the Haryana government banned the manufacture, distribution,
storage and sale of tobacco products with The State Food and Drug
Administration issuing a notice for the same. A violation of the ban was to
be punishable with imprisonment up to 6 months or a fine up to Rs. 1 Lakh.
However, the violations of COTPA proves that tobacco products are still
being manufactured and sold in the state. The same year, beedi became
costlier by 7.5% to discourage its use due to concerns expressed by some
sections, especially victims.

In January 2018 the Haryana government announced that it had

constituted a state-level committee for the implementation of the National
Tobacco Control Programme. The committee was to be headed by the
additional chief secretary or Principal secretary of the Health Department
and its members would also include civil society organisations working on
Tobacco and health control. The state police were directed by the home
department to enforce all provisions under the COTPA. The committee was
regularly supposed to review the COTPA implementations in monthly
crime-review meetings and regular collection of data related to COTPA
violations. The rural development department was to ensure an alternative
livelihood for beedi-makers.

In terms of legislation, the Haryana government has done close to nothing

for its beedi industry workers. There is so much state-level legislation in
place and no analysis of the effectiveness of central legislation so one
cannot judge whether the workers are availing the social security benefits
provided to them. But, perhaps the workers in this state face problems the
same as others such as lack of cards for utilising social security benefits or
lack of company registration ID.

46
 A tobacco shop near a
school, in violation of
section 6 of the COTPA

II) Effectiveness of COTPA in the state:

In 5 districts of Haryana, violations were observed and recorded. As per data,
some of the fundamental provisions of the COTPA were frequently violated
in the said districts. A high rate of non-compliance was recorded in all
districts, with at least one violation of sections 4-7 and a rate of fluctuation
between 70-90%. The distribution between section 4-7 was, however,
unequal within the five districts with Panipat and Jhajjar having more
violations of section 4 and Mewat and Kurukshetra having more of section 5
violations. The violations of section 7 were the least in all five districts. The
main problems faced in Haryana are: the engagement of state and district
level officials which in turn affects the enforcement of existing legislation,
lack of partner partnerships and lack of government monitoring of
progression of COTPA and reporting its violations. (data from 2014.)

Violations of section 6 of the COTPA in 2018-2019 in Haryana was by 70

people but this is only the figure that has been recorded. There are no
government reports covering the progress of the committee set up by the
Haryana government so it’s hard to gain any clarity on the progress they
have made at implementing the NTCP and hold it accountable.

"There are no government reports

covering the progress of the
committee set up by the Haryana
government leading to lack of
transparency and accountability."
47
III) Suggestions:
a) Increase in accountability-
The government needs to hold its officials accountable for the lack of
data available for Haryana’s beedi industry. The unavailability decreases
transparency.

b) Alternate sources of employment-

Haryana has a diversified agricultural and dairy sector. Jobs can be
created in these sectors and in cold storage etc. to provide the beedi
workers with alternate sources of employment. Skill development
programmes can also contribute to opening more employment
opportunities for them.

IV) Positives versus negatives of the state:

The Haryana government has taken little to no initiative for its beedi
industry workers. There is no information regarding state legislations
exclusively for beedi workers. Even the minimum wage rate has not been
disclosed. Lack of information results in a lack of transparency and
analysis. The government needs more legislation, schemes and
cooperations for the benefit of the workers.

48
I) Introduction to the State:
Before its bifurcation, Andhra Pradesh was the third-largest beedi
manufacturer after West Bengal and Tamil Nadu. Around 0.41 million
workers were engaged in the beedi manufacturing sector, constituting
14% of unorganised sector employment and 1.1% of total employment in
the state. In terms of female workforce participation, all the southern
states have scored better than the national average, with Andhra
Pradesh being the highest (51.3 per cent), according to a government
report.

II) Positive Policies in Place in Andhra Pradesh:

The Right to Property law has witnessed unprecedented changes from
the days of uncodified Hindu law in Andhra Pradesh. It has extended
equal rights to women. By ensuring equal property rights to women,
Andhra Pradesh has been able to ensure that women now have a sense
of security in terms of financial stability as they no longer have to depend
on their employment alone. Moreover, schemes such as the MGNREGA
have also helped beedi workers find an alternative to the beedi industry
in the state as it has given them a safer and more sustainable source of
livelihood where women workers especially benefit the most.

In addition, the Andhra Pradesh Government has also launched the YSR
Bima Scheme in the state for all unorganised workers in the state. Under
this scheme -
All unorganised workers in the State in the age group of 18 to 70
years are eligible to be registered as unorganised workers and
enrolled as beneficiaries of the YSR Bima Scheme.
All unorganised workers will be registered under the Unorganised
Workers Social Security Act, 2008 and enrolled as beneficiaries
under YSR Bima Scheme. 49
 Assistant Labour Officer of the Labour Department shall be the
Registering Authority.
The registered unorganised workers will be enrolled as members under
State Accident Death and Disability Scheme and under Aam Admi Bima
Yojana (AABY) and will also be covered under the Pradhan Mantri
Suraksha Bima Yojana (PMSBY). The benefits under the YSR Bima
Scheme are as follows:

1. Rs. 5 lakhs for Accident Death and Total Disability: Rs. 2,25,000/-
(Rupees two lakh twenty-five thousand) from State Accident
Death and Disability Scheme, Rs. 75,000/- (Rupees seventy-five
thousand) under Aam Admi Bima Yojana (AABY) and Rs.2,00,000/-
(Rupees two lakh) from Pradhan Mantri Suraksha Bima Yojana
(PMSBY).
2. Up to Rs. 3,62,500/- for Partial Disability: Up to Rs. 2,25,000/-
(Rupees two lakh twenty-five thousand) from State Accident
Death and Disability Scheme, Rs.1,00,000/- (Rupees one lakh) from
PMSBY and Rs.37,500 from AABY.
3. Rs. 30,000/- for Natural Death under Aam Admi Bima Yojana
(AABY).
4. Rs. 1200/- p.a. towards scholarship per child up to two children of
the beneficiary studying 9th, 10th, Intermediate or ITI.

Beedi workers in the state would be one of the key beneficiaries of the
scheme since they are unorganised workers and were historically always
neglected.

The Andhra Pradesh state

government launched the
YSR bima scheme for all
its unorganised workers .
50
III) Negatives of the State:
Workers are unaware of their basic rights since it is seen that though many
of the workers were enrolled in a provident fund scheme, most of them did
not have information about their entitlements and were at the mercy of
agents and intermediaries. The workers are also paid very low wages in
comparison to the number of hours of work they put in since minimum
wage is not strictly adhered to in Andhra Pradesh. The Government overall
hasn’t been able to come up with many schemes to help the workers in
the beedi industry specifically. Manufacturers prefer to keep beedi rolling a
home-based activity to bypass labour and tax laws. Tax exemptions,
especially to manufacturers producing less than 2 million sticks per year,
provide incentives for the fragmentation of the industry. Moreover,
opportunities for tax avoidance have encouraged the fragmentation of this
sector though ownership is still concentrated among a few entrepreneurs
or large holding firms. Overall, living conditions of the beedi workers in the
state are not satisfactory and the Government must do more to ensure a
quality of life for the beedi workers.

IV) Suggestions for the State:

a) Generation of awareness-
The Government of Andhra must ensure that workers are aware of the
basic policies and schemes that have been launched for them. Since a lot
of workers in Andhra Pradesh are not aware of the same which results in
them getting exploited by the beedi companies.
b) Alternate sources of livelihood-
The Government must also ensure that workers are able to find sustainable
alternative livelihoods to the beedi industry. Andhra Pradesh has a lot of
potentials that it can exploit as is evident from the fact that it currently
stands at second position in the country to provide employment under the
MNREGA. Moreover, with Andhra Pradesh primarily being an agricultural
state, employment opportunities can be generated in sub-agricultural
sectors such as cold storage. The Government must also ensure that
minimum wage is strictly implemented for the beedi workers in the state.
Even the forests of Andhra Pradesh are rich and lush and can be developed
into sanctuaries which would further aid wildlife tourism and consequently
create employment opportunities.
51
I) Overview:
Uttarakhand has been one of the leading consumers of tobacco products in
India. The regions of Tehri Garhwal and Dehradun saw the maximum
consumption in the state in 2015. Consumption here is not just driven by
addiction, but also through myths and misconceptions. It is only natural
that the unregulated sector in the state makes use of this high demand
and produces high quantities of beedis as well.

II) Usage and Consumption Pattern:

As per the Global Adult Tobacco Survey, Beedi and khaini were the two
most commonly used tobacco products in 2016-17 with 15.7% of the adults
smoke beedi. 18.1% of all adults used smoke tobacco. One-fourth of all
adults who worked indoors were exposed to second-hand smoke at their
workplace and one-third of all adults were exposed to secondhand smoke
at any public place. The average monthly expenditure on beedi for an adult
who smoked daily was Rs. 193.9. Out of total smokers, 65.8% of beedi
smokers had thought of quitting smoking because of the warning label.
This includes current smokers and those who quit in the past 12 months.

III) Measures taken by the State:

Out of the 13 districts in Uttarakhand, only 3 have policies and measures in
place that are specific to tobacco- Tehri, Dehradun and Udham Singh
Nagar. And just 3,500 individuals have been guided in the previous three
years in these focuses. Advertising of tobacco is banned unless it is at the
point of sale or in its packaging. Moreover, to regulate the sale of tobacco in
the state, tobacco vendor licensing was made mandatory.

Meaning to give sightseers a sans smoke get-away, the Uttarakhand

government has chosen to implement a restriction on tobacco in four
vacationer cordial locations of the slope state - Har ki Pauri
(Haridwar), Shopping centre Street (Mussoorie), Nainital and Paltan 52
Bazar (Dehradun).
 Making a rigid stride on uninvolved smoking, authorities said the four spots
were picked based on populace thickness and guest footfall. This has had a
positive effect on the travel and tourism sector in the areas mentioned,
leading to an increase in revenues for the locals in the same locations. With
such provisions in place to help tourists feel more welcome and at ease,
tourism boosted multifold with districts like Nainital even declaring “house-
full” as tourists poured in.

IV) Policies for the protection of beedi workers:

The 'Rashtriya Swasthya Bima Yojana' (RSBY) was officially dispatched on
01.10.2007 to give shrewd card based credit only medical coverage of Rs.
30,000/ - to BPL families (a unit of five) in the sloppy area per annum on
family floater premise. The premium partakes in the proportion of 75:25 by
the Central and the State Governments. Highlights of the scheme are:
1. Smart card-based cashless health insurance covers 30,000 per annum
for a family of five on a family floater basis.
2. All pre-existing diseases to be covered.
3. Hospitalisation expenses, taking care of most of the illnesses, including
maternity benefits.
4. Transportation cost of 100 per visit with an overall limit of 1,000 per
annum.

In 2013, the government undertook to extend this scheme to beedi workers

registered under the Beedi Workers Welfare Fund. Implementation under
this scheme involved the identification of agencies/organisations to
estimate the registered beedi workers and prepare a soft version of said
data. The data would then be sent to the State Nodal Agency that
implements the scheme in the state.

In the state of Uttarakhand, however, the scheme was launched in only two
districts, i.e., Dehradun & Udhamsingh Nagar in the year 2009-10.

Ensuring the health of beedi workers, the Government has also launched a
scheme providing a one-time grant of Rs.2 crore or 75% of the actual cost of
construction of the hospital building or including the cost of medical
equipment (whichever is less) to the State Government, Reputed NGOs
etc. Similarly, a one-time grant-in-aid would also be available for 53
the purchase
 of an Ambulance or a Mobile Van equipped with medical or laparoscopic
equipment’s etc., up to the limit of Rs.4 lakh.

Further, an amount equivalent to 75% of the actual cost of the medicines

supplied to Beedi workers and their dependents subject to a maximum of
Rs.10 lakh per annum will also be available towards reimbursement of
expenditure on medicines.

V) Problems with the Policies:

a) Lack of coverage-
The measures and policies undertaken by the state government have been
implemented only in select 2-3 districts. This leaves the rest of Uttarakhand
unregulated and open to exploitation. Moreover, the RSBY scheme has
been extended to only those beedi workers that are registered which leaves
the unregistered workers, that make up the majority of beedi workers,
unable to avail such benefits. Even with state initiative, most workers are
either being excluded or not being able to avail the schemes as much as is
needed.

b) Minimum wage-
The minimum wage for tobacco manufacturing in Uttarakhand as of 2006
was as meagre as Rs.99.65. Coupled with the fact that laws for the beedi
industry are properly implemented in only 2-3 districts, such low amounts
of wages pave the way for exploitation of the beedi workers.

Out of the 13 districts

in Uttarakhand, only
three had proper
policies in place for the
benefit of beedi
workers.

54
VI) Suggestions to be considered:
a) Increase in coverage of policies-
The policies need to be implemented in more and more districts of the
state so that government-provided benefits can reach as many workers as
possible. Since these schemes undergo regular analysis, it would also boost
transparency and keep the data updated.

b) Uniform procedures for registration-

The registration procedure needs to be more uniform so that as many
beedi workers as possible can get registered. This allows them to avail the
benefits put in place for them such as the RSBY scheme and other central
schemes. Moreover, data would also be more comprehensive with it
spanning over more demographics.

c) Alternate sources of employment-

With the beedi industry being on a decline in India, it has become
imperative to create alternative employment opportunities for both skilled
and unskilled workers. Fortunately, Uttarakhand’s tourism industry offers
just that opportunity. There are a lot of tourist spots in this state and people
can be employed here by the government as guides, bus drivers, etc. They
can also be trained in vocations such as making handicrafts, jewellery, etc.

d) Awareness campaigns-
To ensure a tobacco-free space, the state government can introduce
awareness campaigns among teenagers and youth so that there is a
decrease in demand resulting in an overall reduction in the number of
tobacco products in the state. Therefore, more emphasis must be laid on
demand for such products rather than their supply.

55
I) Overview:
Uttar Pradesh is one of the leading producers as well as consumers of
beedis. However, the beedi industry here majorly works unregulated and
the few units that are regulated openly flout rules and laws. This particular
state has a rather grim and saddening picture.

II) Usage and Consumption Pattern:

As per the Global Adult Tobacco Survey, khaini, gutka and beedi are the
three most commonly used tobacco products in Uttar Pradesh in 2016-17.
Out of the 13.5% adults who consume tobacco, 11.3% smoke beedi. 36.7% of
all adults who work indoors were exposed to secondhand smoke at their
workspace and 35.5% of all adults were exposed to secondhand smoke at
any public place. 57.7%of beedi smokers thought of quitting smoking due
to the warning labels. The average monthly expenditure on beedi for an
adult who smokes daily was Rs.159.6.

III) Policies for the protection/benefit of beedi workers:

a) Health care-
Beedi workers and their family members are entitled to avail medical
benefits in 18 different cities of UP out of 67 cities in the state. In these
medical centres, it is mandatory for an MBBS doctor to be available who
specialises in allopathy. Moreover, every female beedi worker who has been
involved in the beedi making process for 6 months or more is entitled to
get an economic benefit of Rs1000 upon the birth of her first 2 children.

The government has also mandated that a worker who has put in at least 6
months of continuous service irrespective of any pay limit shall be entitled
to the benefits. The spouse, unmarried children up to the age of 21 and
parents fully dependent on the entitled workers shall be entitled to the
benefits except for the subsistence allowance. 56
of an Ambulance or a Mobile Van equipped with medical or laparoscopic
equipments etc., up to the limit of Rs.4 lakh.

Further, an amount equivalent to 75% of the actual cost of the medicines

supplied to Beedi workers and their dependents subject to a maximum of
Rs.10 lakh per annum will also be available towards reimbursement of
expenditure on medicines.

b) Education-
The government has mandated financial assistance for Education and
Assistance under Skill Development to students either of whose parents is a
beedi worker having at least 6 months of service. But, the drawback is the
total monthly income of the family should not exceed Rs.10,000 (from all
sources).

Source:
https://www.researchgate.net/publication/330761910_Understanding_Social_Welfare_Sche
mes_for_Beedi_Workers_of_Allahabad_District_A_Conceptual_Study

c) Housing Schemes-
In 2014-15, the government of UP constructed 16,552 houses for beedi and
coal mine workers. The government’s Pradhan Mantri Awas Yojana aims to
provide “housing to all” by 2022. However, due to the mismatch between
people’s capabilities and the government’s vision aided by the setback
faced due to the current economic recession, the scheme seems to be
coming along at an extremely slow pace.

57
IV) Problems with the policies:
a) Evasion of minimum wages-
In 2013, The Asian reported that Uttar Pradesh was openly flouting The
Minimum Wage Act. In the district of Kannuaj, beedi workers were being
paid a meagre Rs. 25 for 1,000 beedis per day as against the Rs 119.23 per
day. This district has the highest number of beedi workers in the state. In
fact, as shown by a study, out of every 500 individuals only 6% could roll
between 800-1000 beedis and only 2.6% could roll 1000 or more beedis. So,
the wages received on the ground are perhaps even lesser. This indicates
the need for heavy penalties and better implementation.

b) Lack of systematic credit-

Most of the beedi workers consume all of what they earn. Savings are close
to negligible and there are no proper systems in place to extend credit. This
traps them in a vicious circle, breaking out which would mean expanded
opportunities for them.

c) Deniance of Social security and basic amenities-

Workers of the Beedi industry are socially exploited and thus, denied
security, dignity and respect. They are also denied basic amenities like
education, healthcare, etc. They are not considered permanent workers of
the company which deprives them of the various facilities they are entitled
to like medical benefits etc.

d) Healthcare-
A study by the International Labour Organisation proved that women beedi
workers from hospitals and medical facilities at their own villages instead of
travelling to the hospitals specified under the Welfare Fund Act. This is
because going to these hospitals is time-consuming which ultimately eats
into their wage generation time.

58
V) Suggestions to be considered:
a) Heavy penalties and stringent punishments-
The beedi workers deserve basic amenities and rights such as decent
wages and education. The middlemen are exploiting them since there are
no strict enough regulations in place. There is a desperate need to offer
beedi workers the protection they need.

b) Putting in place a systematic credit structure-

The beedi workers need to break out of the poverty trap. This can be done
only by creating other sources of self-employment but for this, they need
funds. Proper credit systems can help beedi workers in saving and
investing and also grant loans with low rates of interest which will help
them to create job opportunities for themselves.

c) Generation of awareness-
Even with schemes and policies in place for the benefit of beedi workers,
most of the workers are unable to fully receive these benefits due to
unawareness. There is a need to educate these workers about the schemes
put in place to benefit them so that they can increase their social and
economic standing.

There is a dire need for

proper credit systems
to break the beedi
workers out of the
poverty cycle.
59
I) Usage and Consumption Pattern:
As per the GATS 2016-17, out of the 13.3% of adults who smoked tobacco,
5.3% smoked beedis. Beedi was the third-largest consumed tobacco
product at 8.6%.
The average monthly expenditure on beedi was Rs.786.6. 58.6% of beedi
smokers thought of quitting smoking due to the warning labels.

II) Measures taken by the State:

Beedi kills 5.8 lakh people in India annually. Assam accounts for more than
8,500 such deaths. Assam has 6,907 full-time beedi workers. In the 2011-12
fiscal year, Assam earned a value-added tax of Rs138 crore from tobacco but
the healthcare cost due to tobacco use was Rs.541 crore.

As per the Global Adult Tobacco Survey, more than 85 lakh individuals burn
through tobacco (19.2 lakh cigarettes, 11.5 lakh beedi, and 71.3 lakh
smokeless tobacco clients) in Assam. The state observes 34,000
deathsconsistently because of the use of all types of tobacco.

60
Assam turned into the principal state to lawfully boycott utilization of all
types of smokeless tobacco including container masala containing tobacco
and nicotine through a demonstration passed in 2014. Taking note of the
way that smokeless tobacco represents 90% of oral diseases, the
demonstration likewise boycotts the assembling, notice, exchange,
stockpiling, circulation and offer of the substances.

The State Health and Family Welfare Department has broadened the
disallowance request against the production, stockpiling, transportation,
show, appropriation or offer of gutka, skillet masala or any biting materials
and so forth containing tobacco or nicotine as elements for a time of one
year.

Even the Office of the Director of Higher Education, Government of Assam

enclosed stringent guidelines to be followed in all educational institutions
in accordance with Section 4 and Section 6 of the COTPA, 2003.

In May 2018, Assam became the 9th state to ratify the GST bill that put
beedis in the 18% slab. This was done to protect the employment of more
than 6,000 beedi workers in the state but didn’t come free of criticism with
media houses asking whether jobs should mean more than health.

The Beedi and Cigar Workers Act which has been implemented by the
state caters for proper working conditions of beedi workers and provides
them with benefits such as creches.

The expected impact of this extension is a decrease in the percentage of

people affected with oral, lung and respiratory diseases. It aims to bring an
overall increase in health level of the people as in the present COVID-19
epidemic situation, use of tobacco products are one of the most vulnerable
parts as aware by WHO, ICMR, Govt. of India and Govt. of Assam. With the
GST bill in place, the state government also aims to secure employment for
the already dwindling beedi industry of assam.

61
III) Suggestions to be considered:
a) Creation of job opportunities-
It is important for the state government to create employment
opportunities by revising its agricultural and industrial policies with a
special emphasis on Small and Medium enterprises and the IT sector.

b) Targeting demand-
Awareness about the chronic consequences of consumption of beedi and
cigarettes should be spread through introducing special classes for the
students of standards 9th to 12th. Targeting the demand for these products
will work better and result in shrinkage in the entire size of this market.

The demand for tobacco

needs to be targetted
instead of its supply which
will prove to be more
effective.

62
Even though there already exists a compressive set of legislations directed
towards the beedi industry, the policies are often not implemented, as
seen by the current stare of the industry and its workers. Some people
have been advocating for raising taxes up to the level of cigarettes and
smokeless tobacco to disincentive the poor (the largest consumer base of
beedis) to buy them. This is not a sustainable solution as the livelihoods of
the workers will be impacted for the worse. Instead, the following
suggestions may benefit the beedi industry and its workers-

Vocational Training and Credit Facilities should be given to beedi

workers to ensure that they can develop other means of sustainable
income that is not hazardous and temporary.
Registration and documentation of all beedi workers (home and factory
based) so that they can avail benefits from the government.
Home based beedi rolling should also be subject to labour and tax laws
The wages and benefits that beedi workers receive should be centrally
linked to their Aadhaar Card rather than the current family ID system.
More awareness about the facilities and legislations applicable to the
beedi workers need to be spread to prevent exploitation
Education should be provided through scholarships and admissions in
government schools and colleges to the children of beedi workers to
ensure that they don’t enter the vicious cycle of the industry.
All beedi workers must be able to claim all facilities under the
Ayushman Bharat Yojana, the national healthcare scheme.
In order to be more equitable for women, legislation should mandate
that maternity leave and other benefits such as access to creches be
provided to women beedi workers.
Strict regulations need to be formed about the role of middlemen and
contractors. A committee should be set up to monitor their actions and
ensure that beedi workers are not exploited. 63
 “My helplessness makes this job a compulsion. None of our needs are fulfilled through this job.” -
Shanaz Banu, a 35 year old beedi worker

"My father got TB from rolling beedis and died. The dust from the tobacco gets
lodged in the chest,"- Afsana, a child beedi worker

"My husband used to smoke three bundles of beedi a day. He could survive without food but
not without the regular dose of smoking … it was a habit right from his childhood and he
couldn’t kick it. His bowel movement and his daily mood depended upon the smoking. If beedi
was not available he used to get angry with everyone. He is the breadwinner for our family.
Now the medical cost is unbearable, and I have to take a huge debt." - Thankappan’s wife

Anecdotes from beedi workers tell us that the beedi industry has a long
way to go in terms of regulation and implementation of policies. The
existing legislation in this industry does not cover all beedi workers as
they are not recognised under the law. In developing countries like
India, poverty forces children and their parents to succumb to the
exploitations of the beedi industry, even if that leads to giving up
fundamental rights. This unregulated sector is mostly governed by the
middlemen and beedi tycoons, who dictate the standard of life for
thousands of beedi workers. It is imperative for policies and schemes to
be implemented more stringently to ensure that beedi workers receive
legal, social, economic and political justice.

Tobacco has
severely
adverse effects
on both
consumers and
producers.

64
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66
 THE ECONOMICS SOCIETY,
SRCC
Policy Directors
Website
Aastha Gaur
www.ecosocsrcc.com

Ishika Daga

Email Address
[email protected]
Team Members
Contact
Neharika Mishra
Aastha Gaur

Raisa Azad +91-80050-5000

Ishika Daga
Ryan Barua
+91-86375-40535
Yashvi Mittal Parth Chowdhary

+91-96018-12006