CHAPTER IV

RESULTS AND DISCUSSION

In the light of the objectives set forth for this study, data are collected from
respondents and analyzed by using suitable analytical tools and techniques as indicated
in the preceding chapter dealing with research methodology. The results of the study
along with the related and relevant discussion thereon have been presented in this
chapter under the following sub- heads.
4. 1. Present status of Brick industry
4.1.1. Growth of brick industry
The data presented in table 4.1 shows the increasing numbers of brick
manufacturing units in Nagaon District and Assam during the period of 19992013.From
the analysis ,it is found that in the year 1999, only 06(1.55%) registered brick kiln
units in Nagaon district and in case of Assam, the total numbers of brick kiln units are
386 . But, the number is gradually increasing year after year, in both cases. After the
year 2002, the total numbers of brick kiln units are increasing rapidly in every
succeeding years in the study area and all Assam level.
Table:4.1. Growth of brick industry in Nagaon district and Assam (1999-2012)

Sl. no Time period No of Brick Total no of Brick % share.

industry in industry in Assam
Nagaon District
1 1999 06 386 1.55
2 2000 07 405 1.72
3 2001 12 450 2.67
4 2002 29 526 5.51
5 2003 38 545 6.97

6 2004 48 610 7.87

7 2005 39 590 6.61
8 2006 57 645 8.84
9 2007 68 762 8.92
10 2008 104 869 11.97
11 2009 118 1008 11.71
12 2010 128 1132 11.31
13 2011 143 1210 11.82
62
 14 2012 169 1551 10.89
15
Statistical Handbook of Assam, different period. (2000-2013)
The following representation gives an idea about the growth of brick kiln units
in Nagaon district and all Assam during the period of 1999-2012.
Figure:4.1 Brick Kiln Industries in Assam and Nagaon District (1999-2012)

4.1.2. General features of the sample units

General features of the sample brick kiln units provide an idea about the nature
and size of the units, capacity of production, types of technology followed, the
formalities performed before establishing an industry.
4.1.2.i. Types of units (on the basis of production per day)
Brick Kiln units are classified into different categories on the basis of their production
capacity. According to the Government Gazette notification on “emission standard’
(1996), the brick kiln industries are classified into three categories (Maithel et al 2003).
(1) Small (Production capacity less than 15000 bricks per day)
(2) Medium (15000 to 30000 bricks per day)
(3) Large (more than 30000 brick per day)
On the basis of the above classification, the sample units are categorised as
small, medium and large. From the Table 4.2, it is observed that among the sample

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units 04(10%) brick industries are small, 30(75%) units are medium and 06 (15%) brick
industries are found as large production units. It is found that, majority of the units are
medium scale production units, the large and small units are less in number.
Table: 4.2 General features of the sample units in Nagaon District.
Sl No Category Frequency %
1. Types of industry (i) Small 04 10
(ii)Medium 30 75
(iii) Large 06 15
2. Registered under (i)DIC 00
(ii)Factory Act 40 100
3. Production Status (i) Single unit 36 90
(ii) Branch unit 04 10
4 Rotation (one (ii) 4 round 04 10
season)
(iii) 5 round 16 40
(iv) 6 round 14 35
(v) 7 round 02 5
(vi) 8 round 04 10
5. Miyan(kiln size) (i) 19-20 ( payas ) 07 17.5
(ii)24-25(,,) 25 62.5
(iii)30-31 (,,) 08 20
6.Types of kiln (i).BTK with 0 0
moving chimney
(ii ) BTK with 40 100
Fixed chimney
(iii) VSBK 0 -
(iv) HABLA 0 -
(v) High Draught 0 -
Kiln
(vi)Hoffman Kiln 0 -

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 Figure: 4.2 Types of sample units

4.1.2.ii. Registration
To set up a brick industry in Assam, an entrepreneur has to register either
District Industrial Centre as a registered industry or under The Factory Act.1948. In
Nagaon district, it is observed from the Table 4.2 , that all sample units 40(100%) are
registered under Factory Act.
4.1.2.iii. Single Production unit or branch unit
The brick manufacturing units are operating either branch unit or single unit.
The large units have more than one kiln and they manufacture bricks as a branch unit
either by using same or different logo of the product. Sometimes the producers give sub
contract to make green bricks by using their brand name and latter they buy and burn in
their kiln.
It is observed from the above table 4.2, that among the sample units 36(90%)
units run as single production unit and only 04(10%) units are branch units with
different brand name of same proprietor.
4.1.2. iv. No of rotation or round of the kiln
The production capacities of kilns are generally ranges from 500000-800,000
bricks per rotation. Burn the green brick in the kiln is the most important parts of brick
manufacturing. After firing for some specific days, the clay bricks turn to a hard stone
which could retain the shape after immersion in water for a long time. The time for a
completion of burning is known as one rotation/cycle or in very common language it is

65
known as round.(a completed baking cycle, usually requiring one month). Each kiln
usually runs in between 4 to 7 rounds in every year. In one round approximately from
500000 to 800000 bricks are burnt. The number of rotation or round is different among
the sample units. It indicates the production capacity of a unit. From Table 4.2, it is
observed that 4(10%) brick units complete 4 rounds in one season,16(40%) complete 5
round,14(35%) complete 6 rounds, 2(5%) cover 7 round and 4(10%) units complete 8
rounds in one season in a year .Most of the kilns produce 500000 to 600000 bricks in
one round.
To estimate or count the total output of the industry, the number of rotation or
round is very much necessary as it depends on the number of round and kiln capacity to
stake green bricks within the kiln.
4.1.2.v. Miyan ( size of kiln to stake green bricks in kiln)
The term Miyan is very commonly used word in brick industry. This word is
used to mean of the size of the kiln, where the green bricks are arranged to burn by the
semi skilled labour. In the true sense, Miyan is the capacity to stake the Sun dried green
bricks through a vertical way. Another word PAYAS is also used very commonly to
indicate the staking capacity of the kiln. Generally the ranges are--- C category kilns -
less than 20, B category- less than 24, and A category more than 25. During survey, it is
found that among the sample units, 07(17.5%) units are C category, and 25(62.5%)
units are B category and 08(20%) units are A category Brick kiln. It depends on the
financial capacity of the owner.
From the survey it is found that majority of the sample units belong to B
category medium groups. “C” category kilns have to pay Rs 60000; “B” Category units
have to pay Rs 80000 and “A” category kilns have to pay Rs 100000 as Tax to the
government in two instalments in a year.
4.1.2. vi. Different Types of the Kiln in sample units
The kiln has three zones-brick cooling, preheating and combustion zones. In the
cooling zone air picks up heat from the fired bricks while in the pre heating zone, green
bricks are heated by the combustion gases .In both these cases the mode of heat transfer
is convection. In the combustion zone the fuel is fed from the top through the fire holes.
Most of the solid fuel drops down to the bottom of the setting and burns on the floor of
the kiln. The top of the brick setting is covered with ash, which acts as an effective
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thermal insulation, leaving holes for fuel (coal) feeding. Fixed chimney kiln is a moving
fire kiln, in which fire moves round the kiln while the bricks remain stationary.
Typically 15 to 30 days are required to complete firing of one complete circuit. To
operate such types of works, skilled workers (commonly known as mistry) are required.
All operations like bricks settings, unloading, ash laying/removing, fuel feeding are
continuous type which is constructed in a series of sixteen to twenty or more, so as to
form a continuous tunnel. These kilns or chambers are set with bricks from floor to roof
at the rate of about six to eight chambers per week. The bricks remain stationary in the
kiln, but a body of fire circulated through the whole kilns in about three weeks.
During this time, a chamber of bricks, after being set in the entrance to the kiln
bricked up, undergone a period of approximately three days drying, six or seven days
for pre-heating and another few days required during which actual firing takes place,
followed by five to six days cooling, after which bricks are drawn and the chamber is
cleaned out and ready for refilling. The firing is done from the roof of the kilns, which
are provided with small openings is known as firing holes, to enable the coal to be
introduced from above. Combustion takes place among the bricks. (Maithel,S 1999).
The moving chimney is used in practice in Nagaon district till 1999-2000. But
the Regulation passed by the Ministry of Environment & Forest, New Delhi,
(Extraordinary Gazette part-II-Section 3(i) dated 2nd April 1996) has banned use of
Moving Chimney Bull’s Trench kilns all over India, after 1 st July 2001. This regulation
also prescribes emission standards and Chimney heights for various capacities of brick
plants. After, the government banned on moving chimney in 1996, all brick
manufacturing units in Nagaon district, have compel to change the moving chimney to
fixed chimney gradually. This system is energy efficient and it is very important for the
industry because fuels cost accounts for 30-40% of the production costs and hence even
a small saving in energy has a positive impact on the profitability of the industry. Kiln
size is described by the level of output produced in a round. Most of the kilns in
Nagaon district have been functioning for many years, although their ownerships have
changed over time. A few owners have accumulated enough capital to own more than
one kiln. From the survey, it is found that all 40(100%) production units use Fixed BTK
.There is no any evidence of BTK with moving chimney, VSBK, Habla kiln, Hoffman
kiln or High Draught Kiln etc. in Nagaon district.
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4.1.3 Present Production information of sample Brick Kiln units
Table 4.3 reveal that all sample unit burn bricks in fixed chimney. The initial
investment for kiln construction is Rs 8 –12 Lakhs. The production capacity is
minimum 30 lakhs and maximum 1.5 crores per season. Every unit follow the
traditional method and require minimum 400 tons Coal to burn bricks.
Though the green bricks are burnt at same place with same procedure, but the
final products are found to be in different category. Generally, 60-70% burnt bricks are
1st class bricks, 10-15% bricks are 2nd class bricks and the remaining are categorised as
3rd class, Picket, Jhawa, Broken etc. The selling price is different for each category in
each unit.
As a labour intensive industry, the manpower requirement for kiln is minimum
8-14 (skilled Labour).The required manpower for brick manufacturing is minimum 70
to maximum 250 (unskilled labour). Minimum 8 bighas of land is required for kiln and
other allied activities. The owners of the industry use both own and leased land. No
power is used for production purposes, only used for security purposes from their own
power supply (generator) or from ASEB.
Table: 4.3 Present Production Data of sample units.
Sl No Data / Information Kiln/ manufacture
1 System description Fixed Chimney System.
2 Production Capacity 3000000—above 1.5 crores(per season)
3 Investment for kiln construction Rs 8-12……Lakh
4 Fuel (coal) Minimum 400 Tones (Depends on
quantity).

5 Technology Traditional
6 Quality of Bricks
(a) Class 1 60-70%
(b)Class 2 10-15%
( c) Class 3 3-5%
( d) Class 4(Picket) 2-5%
(e) Jhawa 2%
(f)Broken 6-8%
7 Manpower requirements for kiln 8—14 person (wages for months)
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8 Manpower requirements for brick 70—250 person (wage on piece-rate
manufacture system)

9. Land requirements for kiln and Minimum 8 bighas of land require for
allied activities kiln construction.

10. Land ownership Use both- own land and lease land.
11. Use of electricity Not uses for production, use only for
security purposes (from own generator
or from ASEB.)

4.1.3.i. Operational Period of the Brick kiln industry

An operational period is a demonstration of a process of production and
existence of duration of work. (Saidapur, 2012).It is a period of time, when the finished
products are ready for the market. Due to the traditional production method, brick
production is done only during dry season, as it is opencast operation and depends on
sunshine to dry the green bricks. Most of the units are small and medium scale
production unit and operate at a time when they get the maximum number of marginal
farmers at a low rate of wages. Brick kilns are shut down completely during rainy
season. The green bricks are damaged during rain, if it is not covered, but is not
possible for a small scale producer. Again, the bricks made in these days also cannot be
burnt in open chimneys.
It is observed from the survey that the operational days are different among the
units. Generally production has started in the month of October (after Bijaya Dasami)
and continuing till the last part of March (before Holi).The duration of production is
depends on the production capacity of the unit. Among the sample units, the highest
number of units 21(52.5%) run their production for 6 months from October to March.
Usually, they have completed 6 or 7 rounds and they are medium producers. Another
group of producers consisting of 07(17.5%) run for 5 months and 06(15%) operate for 4
months and 01(2.5 %) run their production function for only 3 months. Only 05(12.5%)
operate for 7 months as they are large production units.
4.1.3. ii. Size of Brick Kiln Units (on the basis of land holding)
The size of the kiln and brick fields is another indicator of the production
capacity. The brick fields require a huge amount of open fields for its allied activities.
69
During off season, the owner of the kiln collects soil and store for the working time, as
their staffs remain idle at that time. The owner uses their staff to collect soil at a low
rate from distance place. Most of the brick kilns are situated in the midst of the
traditional paddy field and gradually they occupy the nearby lands. The neighbouring
farmers are compelled to either sell or lease their land to brick kiln owner as the land
has started to degrade. Besides it, the owners always offer higher amount of price than
the prevailing market price. Generally, the poor or marginal farmers sell their land to
get money at one time and the kiln owners are able to extend their production capacity
and size of the brick fields.
Table.4.4 Size of Brick kiln units (on the basis of Land holding)
Areas (in Bighas) frequency %
Between 20 – 30.Bighas 22 55
Between 31—40 bighas 11 27.5
Between 41--50 bighas 02 5
Between 51--60 bighas 02 5
Above 61 bighas 03 7.5
Figure:4.4 Size of the units(on the basis of land holding)

The sampled brick kilns units can be categorised on the basis of their size of
land holding (area) that they have covered. All brick kilns are located amidst of
agricultural land. Generally minimum 8 bighas of land is required for allied activities of
brick manufacturing. From the survey (Table. 4.4) it is found that the area occupied by

70
brick fields is different and it depends on the financial strength of the owner (not
availability of land). 22 (55%) units have 20-30 bighas of land as brick field,
11(27.5%) owned between 31-40 bighas and 02(5%) have 41-50 bighas of land, 02(5%)
have 51-60 bighas 0 3(7.5%) industries are large production units as they occupied
more than 61 bighas of land.
It is noteworthy to be mentioned here that the overall picture reflects that the
productivity of different brick industries are quite different. It is mainly depends on the
productivity of labour, land areas covered for production and the most important factor
is that the financial strength of the owner.
4.1.4. Owners Profile
The success of any business depends on the hands of the owners, especially in
case of private sector. An attempt has taken to know the basic qualities of the sample
brick kiln owners. In Nagaon District, Brick manufacturing is done as private sector
venture under proprietorship and partnerships.
4.1.4.I. General characteristics of owners of the sample units
The general characteristics features of the brick kiln owners are presented in
Table 4.5. The study covered 40 numbers of owners (26 from Nagaon Sub Division,
11 from Kaliabor sub division and 03 from Hojai sub- division).
4.1.4.I. i. Age and sex of the owners
On the basis of the Table 4.5, it is evident that 14(35%)numbers of owners
belong to the age group of 31-40 years and 13 (32.5%) owners belong to the age group
of 41-50 years.11(27.5%) no of owners belong to the age group of 51-60,and only
02(5%) from the age group of above 60 years.38(95%) units are owned by male
entrepreneurs , only 02 (05%) are owned by female entrepreneurs, but they are not
directly involved in brick field. In such absentee ownership, the managers enjoy
exclusive control over the field.
4.1.4.I. ii. Educational qualification
Education is an important tool for entrepreneurial development. Higher
education level among the owners is an important factor for industrial development of
the area as the formal education possesses by an individual affect his manner, activities
and efficiency. Table 4.5 reveals the educational status of the owners.

71
From the survey, it is found that 05(12.5%) number of owners possessed high school
level, and 13( 32.5% )are educated up to higher secondary level, followed by 12(30%)
educated up to graduate level, and 10(25%) owners are graduated from arts and
commerce stream . But one exceptional observation is that, nobody possessed any post
graduate or any technical education. Only o1 (2.5%) entrepreneur visited Punjab to
gather some experience before installation a brick making machine (for whole year) in
Kaliabor sub-division
Such education level of the owners indicates that the simple traditional
industry can be managed without any higher education qualification or any technical or
management degree.
Table: 4.5 General characteristics of the owners
SL Parameters Category Frequency Percentage
No
1. Age (i) 20-30 0 0
(ii)31-40 14 35
(iii)41-50 13 32.5
(iv)51-60 11 27.5.
(v) Above--61 02 5
2. Sex (i) Male 38 95
(ii) Female 02 5
3. Education (i)H S L C pass 05 12.5
(ii)H S pass 13 32.5
(iii) Up to Graduate 12 30
(iv)Graduate. 10 25
(v) Above graduate & 0 0
technically educated
4. Training for set up (i) yes 01 2.5
industry
(ii) No 39 97.5
5. Degree of Owners (i)1st generation 38 95
Generation
(ii) 2nd generation 02 5
(iii)3rd generation 00 0
6. Planning to close down (i) Yes 0 0
the unit
(ii) No. 40 100
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7. Owners Organisation (i) Yes 22 55
(ii) No 18 45
8. Ownership pattern (i) Proprietorship 38 95
(ii) Partnership 02 5
(iii) Govt.undertaking 00 0
(iv) Co-operative Firm 00 0
(v) Limited Company 00 0

4.1.4.I. iii. Degree of Owner’s generation

Entrepreneurs are the moving force in any industrial economy. The attitude of
an entrepreneur varies depending on whether he/she is a first generation entrepreneur or
a second generation entrepreneur or a third generation entrepreneur. From Table 4.5, it
is found that 38 (95%) owners are first generation entrepreneurs, only 02(5%) are
belonged to second generation. This also indicates the growth trend of the industry in
the district.
4.1.4.I. iv. Plan to close down the industry
During survey, an attempt has been made to know about the future plan of the
owner. If the industry face the problems of selling, marketing, financial or shortage of
demand and prices, and then they must have the plan to close down the industry. But it
is found that no respondent 40(100%) have the plan to close down the industry in near
future, which indicates that brick kiln industry in Nagaon district, is a profit making
industry.
4.1.4.I. vi. Owners’ organisation and membership
The organisation must have some social goal for the benefit and protection of
their members. Manufacturers association help the members to keep themselves
familiar with the current trends of the market, and their position in supply and demand
side and the innovation taken place in the industry. All association have been playing a
significant role for the overall development of the members.
In India, Brick & Tiles Manufacturers Federation (AIBTMF) was founded on 1 st
September 1992 in New Delhi. The main object of AIBTMF is to promote, develop and
protect the trade, commerce and industry. In Assam, “All Assam Brick Field Owners
Association” was formed in the year of 1997.

73
 At present, all brick industries are owned by the private sector and the private
owner leaves the day to day running of the unit to a manager or supervisor. In Nagaon
District, a Brick Owners Association was formed in the year of 2001 named as Nagaon
Brick Field Owners Association, with the membership of the owners in three sub
divisions. The data found during survey reveals that 22(55%) owners are active member
of the association, but 18(45%) are not the members and they have no any idea about
their association.
During survey, it is observed that the role of the association is not considerable.
It does not provide any technical or any other assistance to its members during the
season, as the association is not well organised.
4.1.4.I. vii. Ownership pattern of brick manufacturers
38(95%) units are run by either sole proprietorship or owner managed and
2(5%) units are owned by partnership.(Table 4.5). No any Government undertaking or
any co-operative society are found as manufacturer of bricks in Nagaon district. The
brick manufacturing units are mainly run by the private sector, which are composed by
co-existence of sole proprietorship and partnership. Partnership firms are generally
constituted by close family members or friends.
Traditionally, the brickfield owners are small entrepreneur .As the industry are
self-financed or is a family business, ownership and profit is shared within the family.
In some cases, few family owning more than one brick field, though all the units may
not be registered to minimise the tax burden.
As regards the product market, few units serve specific customers and rest of
them cater to the open market where they do not personally know their customers .Most
of the units face the problems of competition, primarily due to the entry of new units.
But to fulfil the increasing demand, the brick-fields are growing at a high rate. The
pattern of ownership is presented by the following figure 4.5.

74
 Figure 4.5 Ownership pattern

4.1.4. I.viii. Owner’s sources of finance

The main thrust of industrial finance is to provide fixed and working capital for
the production. Properly supplied finance is the greatest support for any industrial
development. It is the main force to run an industry as a successive one, especially the
brick industry as it requires a huge amount of capital for initial stage for land and
chimney, plant and machinery tools etc. Besides it, the industry also requires working
capital to purchase raw materials, payments of wages and other overheads costs. Due to
lack of sufficient supply of finance, the brick industry may be collapsed, as it requires
huge amount of working capital for regular weekly payment. The small scale units
often face the problems of finding working capital which force the producers to buy
raw materials on credit, borrow from money lenders, pre-sell the bricks or produce on
order only. In all cases their production costs are higher than those who do not face
such problems. The brick producers have access very little to institutional finance like
Nationalised banks. Such formal institution seems to play only a negligible role in the
promoting informal sector activity like brick production.
All sample brick kiln owners use their own capital to start their industry. This
source of finance is very significant because it prove the financial capacity of the
owner. In Nagaon district, local money lenders also finance many units with high rate
of interest. Manufacturers seek the help of money lenders to meet the need of working

75
capital. Generally, the owners prefer to take advances from indigenous money lenders
as they provide loan without insisting upon collateral security and grant loans at a very
short notice, whereas the nationalised banks ask for many formalities. Besides it, the
practice of Forward Trading or Advance selling of product is another important source
of finance in brick industry. It is very common in brick manufacturing, as the retail
sellers of bricks provide adequate financial support to the manufacturer at the beginning
of the season before the production starts at the condition that a certain amount of
bricks will be sold to that particular person at a comparatively lower rate. This practice
is followed by about 100% of the producers. Such type of finance help the producers as
it ensures the sale of the products and provides adequate finance as working capital in a
regular process.
4.1.5. Marketing of the product
Marketing is a process through which a product or service reach to customer for
the purpose of selling. In Nagaon district, generally the brick producer arranges and
controls the entire brick marketing process. With the exception of small clients, bricks
are often resold several times before they reach their final destination. The sale of the
product to its users may have been done in two ways-- directly from the production site
or indirectly through a number of intermediaries. These processes are known as
distribution channels.
In brick market, the role of intermediaries, contractors, advanced traders,
(supplier of bricks with permanent settings mainly at market place, commonly known
as Hardware shop) transporters or carrying contractors with truck or small carrier is
very important as they are specialist in selling. They have wider contacts, experience
and scale of operation which means that greater sales can be achieved than the
manufacturers. Through this indirect route, bricks are collected by whole seller or
advanced trader and then supplied to the end users. Besides it, the manufacturer directly
sells its product to private individuals and Government agencies. The channel of
distribution exists in Nagaon District is shown in the figure.4.6. It is found that all
sample units sell their product by themselves and through the system of advance selling
or through some agents.
Figure:4.6. Marketing channel of Bricks in Nagaon District.

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 Manufacturer

Mediaries

. Contractors/advanced traders↓
Transporters/carrying contractors
↓
Government and other users Private uses for construction
.

for Housing and other concrete

construction

Marketing or selling of product to the customer is one of the important parts in

brick industry. Due to its nature, generally bricks are demanded at huge quantities. To
minimize the transportation cost, both seller and purchaser want to transact the bricks
locally. The owners sell their product within the district and in nearby district like
Karbi-Anglong, Jorhat, Golaghat etc. Some producer sells their product in other state
like Meghalaya through the transportation system of coal, which they use in their plant.
4.1.6. Brick Market
Brick markets are characterized by some features of monopolistic competition.
All the producers manufacture same product with different brand name. Intense
competition keeps the prices at a considerable rate in the whole market. Brick producers
always try to sell the most bricks, by lowering prices as much as possible.
Due to the competition, some of the manufacturer reports about losses and nominal
profits. (Bhukunth, 2005, ILO Project, 2011)
Due to such prevailing characteristics of market, many kiln owners cannot
maximize their profits by waiting for peak season to make profits by selling to bigger
clients. Most of the kiln owners cannot afford to store huge amount of bricks until the
prices go up in the off-season. They must have to sell on a monthly basis and try to
arrange working capital. Generally, they have to conduct transactions with smaller
clients that pay upon delivery. Due to easy entry for production, high dependency on

77
raw materials and expert labour, rising cost of fuel (coal) and the inability to increase
prices create some hindrance to the industry and the working condition of the site.
The brick kiln industry is highly profit oriented industry, but in some cases,
intense competition among the producers drives down prices, profits and wages.
Besides it, the industry is highly dependent on the prices of raw material and fuel (coal)
and weather. As a resultant effect, the producers have to compromise with the product
price and profit. During survey it is found that many kiln owners run their production at
simply breaking even point. But all the producers (100%) are optimistic and they have
no plan to close down the Unit.
4.1.7. Pricing of Bricks
The brick market is different from other product market. Though it has some
common characteristics of monopolistic competition, but in case of price determination,
it is not done by demand and supply of the product. Like other manufacturer, the brick
kiln owners of Nagaon district, take into account the different costs in fixing the prices
of bricks during the season of production. Besides it, some other factors are also taken
into consideration when fixing the brick prices. One of the significant peculiar
characteristics found in brick industry is that all accounts that costing and selling of
bricks are accounted and sold in multiples of thousand( @1000.)The government of
Assam has no any direction to fix or control the price of bricks. So, fixing the prices is
done by every individual producer, by considering the following conditions.

(i) The risk and uncertainty involved in the production period.

(ii) Prevailing price of the previous years.

(iii) Sell position or market of the previous years.

Fixation of bricks price is not depends on the traditional market forces—
demand for and supply of bricks. So the Price is not similar in different parts of the
district as well as the state. The rate is varying from place to place depending upon the
availability of materials, transportation, loading and unloading charges etc. The price of
bricks is fixed at the beginning of the season but it may not necessarily follow the same
rate for whole season.
But, absence of any central system or authority in fixing the prices of bricks has
never become a hindrance towards the uniformity of prices. Each manufacturer fix the

78
prices individually, but an “invisible hand” (Ghosal, 2008) works behind the prevalence
of uniform price throughout the state. The following table 4.6 shows the variations and
uniformity of selling prices among three sub-divisions, during 6 years.
From the Table 4.6, it is observed that without any formal meeting or any
government direction, the prices of bricks in three sub-divisions are slightly different.
Generally, the consumer always collects bricks locally to avoid transportation cost. This
gives the manufacturer a scope to act as a monopoly firm, but the manufacturer wants
to sell his production during the season as it is difficult to store the bricks for long
period. So, no entrepreneur, take the risk of falling demand due to higher price .With
the help of some informal discussion with other manufacturers, the price of bricks is
determined in such a way with a sizable profit ,that they can sell their production
within a single season. The prevailing price of previous year is also another important
factor for price determination
Table: 4. 6 Sale price per thousand 1st& 2nd class bricks (2008-2013)
Time period Nagaon Sub-Div(in Kaliabor Sub Div(in Hojai Sub-Div.
Rs@1000) Rs@1000). (in Rs@1000)
2008 3800---4000 3500--3700 4000---4200
2009 4200---4800 3800----4500 4300---5000
2010 4800---5400 4500--- 5200 5000—5500
2011 4200---4500 4000----4200 4500--4800
2012 4500---5200 4200----5000 4700---5500
2013 4500---5800 4200---4500 4700---5000

Another feature of brick prices shown in the market that the prices of same
quality bricks are not remain same for whole year. Prices of bricks keep fluctuating
throughout the year, reaching their maximum during the rainy season when
conventional brick manufacturing activities comes to a halt and minimum in late
December to March, when fresh production come to the market. The movement of
prices of bricks in a normal production and demand situation follows almost a uniform
path throughout the year in each unit of Nagaon district. Which are shown by the
following Table 4.7 .Only unusual prolonged rainy season or an untimely rain or
sudden rise in developmental activities by the government may cause an unusual
movement of price level of bricks; otherwise same fluctuations are experienced during

79
the whole year. Since the production of bricks mainly depends upon the use of raw
materials, labour, and fuel, the cost of every unit of bricks are fixed by same procedure
by all manufacturing units. So no variations are found in price movement during the
survey period.
During the first phase of production (mid November to December) the
manufacturer fixes comparatively higher prices as the new products are available and
the demand for new ones is high. Due to the different circumstances (as the production
just started) the manufacturers are unable to supply the new bricks (huge quantity) to
the market. In such situation, price of bricks are fixed at a relatively high rate. As the
prices of bricks are high and non availabilities of new products, only 8%--10% of total
products sale in the market. Besides it, the rural people are busy with harvesting, so the
construction works are totally stopped in rural areas. The second phase of brick sell is
started from January to early part of March. The prices of bricks are comparatively
lower than the first phase as the new products are come to market at a high range. Due
to dry weather, construction works are in progress in both urban and rural areas. After
harvesting the income of rural people increase and they also demand bricks locally at a
significant way .As a result, with low price and high demand, the brick manufacturers
are able to sell 25-30% of their product at this phase. Since full scale production in all
units continues during this period, no movement or a very little movement in the price
can be observed. During third phase (late March to April 15), prices are lowering for a
short period but the sell also come down and it is ranges 5%-10% of total product .The
fourth phase of brick market is started from mid April to mid August and market
condition is returned to like second phase and around 25%----30% of total bricks are
sold at this phase. During mid April to mid August, the price level move very little and
depends upon the market situation.

Table: 4.7 Movement of Price and product

Phase % sale of Price movement
product
i) 1 Phase (Mid November to
st
8%----10% Initial fixation at a high rate.
December).
ii) 2nd Phase (January to March). 25-- -30% Lower than first phase and
stable.

80
 iii) 3rd Phase (late March to April, 15). 5%---10% Further lowering for a short
time.
iv) 4th Phase (Mid April to Mid 25%---30% Return at 2nd phase
August. price condition.
v) 5 Phase (September to early
th
20%---25% Fluctuate and depend upon the
October) market condition.
As the productions are totally stopped due to rainy season, the prices level move
according to the market demand. The fifth phase is running at September to early
October, when the manufacture can sell 20%--25% of total product. The demand for
bricks stays at its normal level, because due to dry season the construction works are
done at high range. The manufacturer would like to sell their old products at a relatively
low price as preparatory measures for taking up production process for the next season.
So they reduce the price on the basis of available stocks and market conditions.
4.1.8. Grade wise output, accounting rate, sale value
During the survey, it is found that all the output from one round of burnt does
not come out to be uniform in quality bricks due to technical reasons. Generally, the
products are in six categories of different quality. It has been observed that on an
average in 5% to 7% of green bricks is loss, before burn at the field. The loss is
occurred due to man-made break, rain, or cattle grazing in the paddy field after
harvesting. The amount of loss is higher in large production units, as their area is quiet
large and have to carry a long distance to the kiln with some sacks or by others means.
Such carrying process also increases the rate of loss. But comparatively the loss of
green bricks in medium and small units is less in amount. It is found that the green
brick making areas are small in such units and the distance to the kiln is short. Carrying
green bricks to kiln is done only manually with minimum loss.
There are six categories of products of different quality is produced from same
round of burn. On an average,60- 70% of the total green bricks set in the kiln for firing
can be transformed into first class bricks, which can be sold at a higher price. The
remaining portion of bricks is commonly known as second class and third class bricks.
The next categories of burnt bricks are known as picket or Jhawa and the waste portion
is known as broken. Generally, 10% green bricks turn into 2 nd class bricks, and 5%
turns as 3rd class bricks. again from remaining bricks 5% turns as picket.2% as Jhawa
and the last 8% is waste product or commonly known as broken.
81
 The manufacturers cannot sale all categories of products at a uniform quoted
price, which is determined by individual producer on the basis of cost of production and
previous year price. But it is also found that the price is comparatively high in Nagaon
sub-division than the prices of Hojai and Kaliabor sub-division. The 1st class bricks can
be sold at the quoted price .The other categories of bricks are sold at a varying level of
lower prices than the quoted price. Except the broken brick all categories of bricks are
accounted in 1000.Broken bricks are sold with the measuring rod of fit or 12 inch.
4.1.9. Productivity of the units
To study the productivity of the sample units, two concepts – overall
productivity and labour productivity (value added per unit of labour cost method) are
used.
(i ) Overall Productivity : To estimate the total factor productivity of a firm, all the
inputs are taken together by expressing them in the same quantitative unit. Cost is used
as convenient measure of productivity. In this method, all the input factors and outputs
are converted to money terms. So, the ratio between the output and the inputs, in terms
of money, is the measures of overall productivity. The following ratios are used in case
of total or overall productivity.
Overall or total productivity =Output (sale value)/ Input (cost).
The overall productivity of the 40 sample units are shown in the Figure 4.7,out
of the 40 sample units, the maximum overall productivity ratio is 1.82,found at K-1 in
Kaliabor sub division and the minimum is 1.01 at N-10 at Nagaon sub division.
Among the medium units, 9 units have less productivity than the average ratio of the
units. It is also observed that among the sample units,there is slight variation in the
productivity ratio whereas , the average overall productivity of the industry is 1.34.

Table : 4.8 Overall Producticity of sample Units.

Sample Units Production(000) Output (Rs) Input (Rs) Productivity

11400000 58071600 36078000 1.61

N-1

7980000 39892020 22402200 1.78

N-2

6840000 33525120 19164000 1.75

N-3

82
 6840000 35469960 19844400 1.79
N-4

7980000 36261120 24099000 1.5

N-5

8550000 36585450 20050500 1.82

K -1

4320000 18468000 16511400 1.12

N-6

4032000 16934400 15285840 1.11

N-7

3840000 17913600 14895800 1.2

N-8

4032000 17398080 15367160 1.13

N-9

4560000 19626240 19411000 1.01

N-10

4275000 18356850 16840300 1.09

N-11

4032000 16789240 11360860 1.48

N-12

4608000 19514880 16964320 1.15

N-13

4656000 20207040 16896640 1.2

N-14

4800000 20697600 16107500 1.28

K-2

5760000 23644800 16363600 1.44

K-3

4992000 20367360 14474000 1.41

K-4

4608000 18849792 13653480 1.38

K-5

4320000 17258400 11011500 1.57

K-6

4365000 18054240 11045200 1.63

K-7

4608000 18170244 12749300 1.43

N-15

4512000 18939872 11392160 1.66

K-8

5568000 33491520 19460160 1.72

N-16

4416000 18120320 11630080 1.56

K-9

4171000 17294078 12129060 1.43

N-17

5238000 22008330 15019740 1.47

N-18

4410000 18904200 13913400 1.36

N-19

83
 4559000 19658408 16802480 1.17
N-20

4416000 18503040 14409780 1.28

N-21

4074000 18167324 15431780 1.18

H-1

4268000 18700953 14600980 1.28

H -2

5376000 23674829 14570800 1.62

K-10

4032000 18567360 11951880 1.55

K-11

4940000 19503120 15680600 1.24

N-22

3420000 14774400 10701400 1.38

N-23

2820000 12322272 9111250 1.35

H-3

3325000 14718113 9730500 1.51

N-24

3040000 13308106 9868000 1.35

N-25

2716000 13085734 9549600 1.37

N-26

Total =40 units 196699000 875798015 36078000 1.34

Figure: 4.7 Overall Producticity of sample Units.

84
 From the above analysis ,it is be observed that the overall productivity of 26
brick manufacturing units have higher productivity than the average productivity ratio
of 1.34 and only 14 units have low productivity . Comparative picture of Overall or
Total Productivity among the sample units are shown in figure 4.7. This analysis shows
the variations in overall productivity among the units. From above analysis, it can be
concluded that the productivity ratio is almost homogeneous among the units in three
sub-divisions. Of course, it is not easy to study the productivity of units based on the
data of only one year. With a series of time series data, it can be properly study and
concluded about the productivity of the brick industry. But due to the nature of
unorganised and lack of proper information, it is very difficult to gather the time series
data. So, the study is done on the basis of one year data.
ii Labour Productivity (Added Value per unit of labour cost)
The ultimate aim of a manufacturing concern is to add utility or value to the
bought out materials and services by converting these into finished products. Value
added is often used as a measure of productivity. As an index of productivity, the ratio
used as
Net output per rupee of wages= Value added/Total wages (Value added=
wages+ overhead+ Profit)

85
 Value added as formulated in above manner is used to measure the performance
of labourers and represents the level of efficiency attained by them. Table 4.9.
represents the labour productivity (added value per units of labour cost) of the sample
brick kiln units. The Figure 4.8 shows the comparative picture of the labour
productivity of the sample units. The maximum labour productivity is to be 5.21 in
(K10) Kaliabor sub division and minimum shown as 2.69 in (N-10) of Nagaon sub
division. The average labour productivity (value added method) is 3.65.
From the analysis of the data; it is found that that there is slight variation in
labour productivity among all units. The units ,where the labourers are migrated from
distance place and reside in the worksite experience higher productivity than those units
where the local labour daily come to the kiln and return home .

Figure 4.8 Labour Productivity (Added Value per unit of labour cost)

86
 Table. 4.9. Labour Productivity (Added Value per un it of labour cost)

Productiv
Sale ity =
Overhea Value Total Profit V.A. V.A./T.W
Rs) SV-TC) W+O+P)
=
) ds (Rs) ( Cost (Rs) .
( (
Rs) Fuels (Rs
6612000 36078000 13785600 35019600 3.65
548796
2553600 00 22402200 11425020 23755620 3.99
376576
3283200 20 19164000 10462320 22653120 4.52
335251
3351600 20 19844400 12137160 23913960 4.84
354699
3830400 60 24099000 7533720 22359120 3.51
362611
940500 20 20050500 9352950 23467950 3.91
365854
4536000 50 16511400 1308600 9594000 3.09
184680
3951360 00 15285840 1164720 8487360 2.93
169344
4147200 00 14895800 2557000 9921600 3.59
179136
3669120 00 15367160 1054840 8166480 3.05
173980
5380800 80 19411000 352040 8910240 2.69
196262
4403250 40 16840300 1217300 8963100 2.95
183568
50
8
6
 Final Raw
Sample Output Materials W
Rs) ag
units (000) (
( es
N-1 11400 9600000 9606000 10260000

N-2 7980 6720000 5946600 7182000

N-3 6840 5400000 5008800 5472000

N-4 6840 5400000 4936800 6156000

N-5 7980 6720000 6366600 7182000

K-1 8550 5850000 5992500 7267500

N-6 4320 3690000 3101400 5184000

N-7 4032 3528000 2887440 4919040

N-8 3840 3000000 2756600 4992000

N-9 4032 3780000 2676440 5241600

N-10 4560 4560000 3314200 6156000

N-11 4275 4050000 3043300 5343750

 80640 11360860 1073820 7977640 3.23
167892
4055040 40 16964320 1306400 9434880 3.33
195148
3352320 80 16896640 2239520 9354240 3.48
202070
3168000 40 16107500 3438100 10917600 3.46
206976
3398400 00 16363600 5380400 14308800 3.94
236448
2446080 00 14474000 3846640 11496160 3.64
203673
2764800 60 13653480 3353192 10891472 3.72
188497
1252800 92 11011500 4259700 10022400 3.66
172584
1222200 00 11045200 4739240 10995990 3.98
180542
1843200 40 12749300 2656144 10211844 3.46
181702
1218240 44 11392160 5156352 11607872 4.08
189398
4176000 72 19460160 5428800 14402560 3.63
257241
1898880 60 11630080 4635520 11183520 4
181203
2127210 20 12129060 4163978 9923878 3.77
172940
1990440 78 15019740 4788630 12212730 3.77
220083
2072700 30 13913400 3756000 10246200 3.21
189042
00
8
7
 N-12 4032 3570000 2468620 5241600

N-13 4608 4320000 2829280 5760000

N-14 4656 4800000 2691520 6052800

K-2 4800 4500000 3159500 5280000

K-3 5760 3000000 3629200 6336000

K-4 4992 3380000 3156720 5491200

K-5 4608 3120000 2930280 4838400

K-6 4320 2700000 2738700 4320000

K-7 4365 2475000 2764750 4583250

N-15 4608 3120000 2947700 4838400

K-8 4512 2820000 2841920 4512000

N-16 5568 4640000 3962560 6681600

K-9 4416 2300000 2794400 4636800

N-17 4171 2365000 2631650 5005200

N-18 5238 3510000 3233700 6285600

N-19 4410 2925000 3182700 5733000

8
8
3829560 16802480 2582388 9971708 3.03
196584
2208000 08 14409780 2768460 9523840 2.96
185030
4685100 40 15431780 4365144 10523324 3.39
181673
2432760 24 14600980 3118333 10046153 2.86
187009
2204160 53 14570800 7276189 13326029 5.21
236748
1572480 29 11951880 5365560 11208960 3.71
185673
3556800 60 15680600 3427320 9701120 4.18
195031
1710000 20 10701400 2705000 7790400 3.88
147744
1410000 00 9111250 2083022 6856272 3.07
123222
897750 72 9730500 3225363 8120613 3.63
147181
1611200 13 9868000 2163306 7132106 3.43
133081
2037000 06 9549600 2857134 7306534 4.22
130857
6612000 34 491906995 3.65
 N-20 4559 3760000 3286220 5926700

N-21 4416 3680000 3222580 5299200

H-1 4074 3570000 3102680 4074000

H-2 4268 3960000 3513420 4694800

K-10 5376 3360000 2555440 6451200

K-11 4032 2520000 3021000 4838400

N-22 4940 3380000 2321800 6422000

N-23 3420 2880000 2007400 4104000

H-3 2820 1800000 2235250 3666000

N-24 3325 2275000 2235250 4322500

N-25 3040 1920000 2080800 4256000

N-26 2716 2520000 1733400 3259200

Average 134915120
4.1.10. Intensity of the Factor used
Factor intensity refers to the relative proportion of the various factors of
production used to make a product that is how much an industry uses its inputs in
production. The brick manufacturing process is very traditional in study area.
To analyse the intensities of the factors used, established theoretical approach is
required to get the real picture of industry. For this purpose, the various inputs are
clubbed in four major categories. These are raw materials, wages, fuels and other
overhead costs. Other overheads costs comprise the indirect and fixed costs,incurred in
that particular year Here, capital is not regarded as a separate input. Because, in brick
industry, the repairing cost of fixed kilns have to incur in every new period of
production and such expenditure is fixed in nature.
Besides it, the brick manufacturing process is considered as the process of
“flow-input-flow-output’’ concept. As the ratio of the fixed cost to the total cost is
sizeably small they may be regarded as an inflow of the capital with the existing stock.
This amount of cost is very nominal as comparing to the other costs and can be easily
clubbed under the overhead expenditure. (Ghosal 2008).
The whole process of brick manufacturing is done by manually in all
production units. Theoretically, two approaches used to analyze the intensity of labour
use –a) Direct labour input by collecting data on number of labour employed or man
hour utilized b) Collecting the expenses on labour.
But in Brick production different categories of labourers involved in the
production process, so taking into account of the numbers of labour become very
problematic. Different categories of labours are used in different proportions with
different wage schedule in production of bricks. To know the labour intensity in
production process, the expenditures on collective wages of all categories of workers
are considered, (as the number of labours is not applicable for calculation). Again, the
raw materials and fuel used as input cannot be quantified in their physical proportion.
Therefore, the expenditures incurred on such inputs are considered for the calculation of
factor intensity in production. Data collected from 40 sample units consisted of the total
physical production of the output, expenditures incurred on wages, raw materials, fuels
and other overheads.(By Unit Costing Method).

93
Table.4.10 Final Production and Inputs (Raw material, Overhead Cost, Wage and Fuel)
S.N. Name of units Fp (Rs) Rw (Rs) Oc(Rs) Wg(Rs) Fu(Rs)
1 N-1 388740 9600000 6612000 9606000 10260000
2 N-2 272118 6720000 2553600 5946600 7182000
3 N-3 233244 5400000 3283200 5008800 5472000
4 N-4 233244 5400000 3351600 4936800 6156000
5 N-5 272118 6720000 3830400 6366600 7182000
6 K-1 291555 5850000 940500 5992500 7267500
7 N-6 153360 3690000 4536000 3101400 5184000
8 N-7 143136 3528000 3951360 2887440 4919040
9 N-8 136320 3000000 4147200 2756600 4992000
10 N-9 143136 3780000 3669120 2676440 5241600
11 N-10 161880 4560000 5380800 3314200 6156000
12 N-11 151763 4050000 4403250 3043300 5343750
13 N-12 143136 3570000 80640 2468620 5241600

14 N-13 163584 4320000 4055040 2829280 5760000

15 N-14 165288 4800000 3352320 2691520 6052800
16 K-2 170400 4500000 3168000 3159500 5280000
17 K-3 204480 3000000 3398400 3629200 6336000
18 K-4 177216 3380000 2446080 3156720 5491200
19 K-5 163584 3120000 2764800 2930280 4838400
20 K-6 153360 2700000 1252800 2738700 4320000
21 K-7 154958 2475000 1222200 2764750 4583250
22 N-15 163584 3120000 1843200 2947700 4838400
23 K-8 160176 2820000 1218240 2841920 4512000
24 N-16 197664 4640000 4176000 3962560 6681600
25 K-9 156768 2300000 1898880 2794400 4636800
26 N-17 148071 2365000 2127210 2631650 5005200
27 N-18 185949 3510000 1990440 3233700 6285600
28 N-19 156555 2925000 2072700 3182700 5733000
29 N-20 161845 3760000 3829560 3286220 5926700
30 N-21 156768 3680000 2208000 3222580 5299200
31 H-1 144627 3570000 4685100 3102680 4074000
32 H-2 151514 3960000 2432760 3513420 4694800
33 K-10 190848 3360000 2204160 2555440 6451200
34 K-11 143136 2520000 1572480 3021000 4838400
94
 35 N-22 175370 3380000 3556800 2321800 6422000
36 N-23 121410 2880000 1710000 2007400 4104000
37 H-3 101802 1800000 1410000 2235250 3666000
38 N-24 120033 2275000 897750 2235250 4322500
39 N-25 109744 1920000 1611200 2080800 4256000
40 N-26 980478 2520000 2037000 1733400 3259200
On the basis of the Table 4.10, a simple correlation matrix of output(Final
Product) and input used (Raw materials, Wages, Overhead cost, and Fuel cost) is
prepared.
It is observed in the correlation matrix that the correlation coefficient between Final
products and raw materials is 0.845, shows a high degree of correlation. Again the
relationship between final product and Wage, Overhead Cost, and Fuel is 0.930, 0.879
& 0.891 respectively, indicating pair wise correlations are quite high and significant at
one per cent level. (Table: 4.11)
Table: 4.11 Correlations matrix
Variables Fp Rw Oc Wg Fu
Final product(Fp) 1 0.845** 0.274 0.930** 0.891**
Raw Materials (Rw) __ 1 0.381* 0.845** 0.805**
Overhead Cost(Oc) __ __ 1 0.319* 0.316*
Wage(Wg) __ __ __ 1 0.791**
Fuel(Fu) __ __ __ __ 1
N=40
* *= significant in 0.01 level, *= significant in 0.05 level
From this correlation matrix, it is observed that pair-wise correlations are quite
high; therefore there may be a collinearity problem. But the correlation matrix, does
not give us adequate information about the intensity of inputs used on output, so a
regression analysis is run to find out the intensity of inputs used on output.
Basing upon the data,(Table:4.10) a production function is estimated for the
units .The production function is considered to be a function of Raw materials, Wages,
Fuels and other Overhead Costs. It is to be an extended form of Cobb-Douglas
production function in its stochastic form (multiple regression models) of the following
type used to establish a functional relationship between output with its inputs and an

95
attempt is made to observe the intensity of factor used or to estimate the relative
importance of different inputs on output. The productivity of each unit is regressed with
the use of Rw, Wg, Fu and Oc. But the result of the regression shows that there may
be multi collinearity among the data, as the R2 value is quite high and many coefficients
of variables are insignificant along with large number of standard errors. So another
regression on the above data runs with the Final product (Fp) as dependent variable and
raw material, wages and fuels as independent variables.
This production function is considered to be of the following type:
Fpi =A Rwi1b1 Wgi2b2 Fui3b3 eUi

(i = 1, 2, 3........40)
Where,
Fpi = Final production of ith units.(in Rs)
Rwi = Raw materials of ith units.(inRs)

Wgi = Wages of ith units.(in Rs)

Fui = Fuels cost of ith units.(in Rs)

A, b1, b2, b3, are the parameters. ln Fpi = ln
A+b1lnRwi1 + b2lnWgi 2+b3ln Fui3 + Ui lnFpi =
0.890+0.009lnRw+0.487lnwg*+0.537lnFu*
(.957) (.072) (.072) (.104)
R2=.929, Adjusted R2 =.923, N==40
F (3,36) =157.630*
Chi2 = 0.49
Prob > Chi2 =
0.4820

* implies 1% level of significance and Standard error of the coefficient are given in the
parenthesis
. Based upon the data of the 40 observations (Table 4.10), the above production
function is estimated by using ordinary least square method. The multiple regressions
are presented in a log linear form with lnFp as dependent variable and lnRw, lnWg,
lnFu as independent variables. To run the regression the natural log values of all the

96
variables are used. Heteroskedasticity is absence in the model as depicted by the
insignificant chi-square value.
The above regression equation shows that the dependence of the production on
the independent variables is significantly established at 99% level of confidence. The
input elasticity of the raw materials, wages, and fuel comes to be approximately 0.009,
0.487, and 0.537 respectively. The constant term of the regression equation is so small
that it can be ignored. Out of all these independent variables wage and fuel cost are
found statistically significant at 1.00 per cent probability level, but the cost of raw
materials has positive impact on output but found to be statistically insignificant.
From estimation, an increase in the production by increasing any of the above
inputs (keeping other inputs constant) can be explained. Holding the other input
constant, a 1 per cent increase in the cost of labour input led on the average to about a
0.49 per cent increase in the output. Again, the other inputs hold constant, a 1 percent
increase in the cost of raw materials led on the average to about a 0.01 per cent increase
in the output. Similarly a 1 percent increase in Fuel cost led on the average to about
0.54 per cent increase in the output.
The coefficient of multiple determination (R2) is quite high, which is 0.93;
indicated 93.00 per cent goodness of fit of variables. This variables considered in the
model explains 93% of the dependent variables. The influence of factor intensity on
production can be explained by the relationship assumed to be in operation between the
dependent and independent variables.
In keeping with the characteristics of Cobb-Douglas production function and the
values of the coefficients of variables of such production function, it can be calculated
that the total value of the coefficients of variables comes to be 1.033. Since this value is
very marginally higher than 1, it can be concluded that the industry is running under
constant returns to scale. The nature of production established the fact that the increased
use of input causes a rise in output in almost the same proportion in which input was
increased. The above estimation shows that (i) It is statistically significant.

(ii) The dependence of production on independent variables is highly reliable.

(iii) The industry run under constant returns to scale.

97
4.2. Cost Analysis of Brick Industry
The brick industry in Nagaon district adopts the traditional manufacturing
method .In such production process, no machinery is required .Only coal fired country
type kiln with permanent nature of concrete chimney, is the only and the most
important fixed cost for the production. All works are done manually. About 60%
labours engaged in green brick making, 30% is engaged in loading and unloading and
only 10% labours are engaged for other types of works. The whole process is not done
in the same schedule. Making green bricks are done for few days. Burning is done
around the clock. The continuous process of manufacturing forces the owner to bear
some specific costs. Costs of manufacturing materials, Labour and other expenses or
overhead costs are the three major categories of cost in brick industry. Again these costs
are into two categories like direct cost and indirect cost.
4.2.i Direct cost
Direct costs are those costs which are directly related to the manufacture and
they are variable costs. In brick industry, the direct costs are:

•
Direct materials: Cost of direct materials used in the production (costs of
raw materials -soil and sand).

•
Direct labour: The costs of labours, who directly related to the production
(wages for kiln workers).
•
Direct other Cost: Directly related overhead costs( fuel cost)
4.2.ii Indirect costs:
Indirect costs are those costs that are incurred in factory but that cannot be
directly associated with production process. Such types of costs are classified according
to the three elements of costs, materials, labour and overheads.

•
Indirect materials:- Materials cost those are not directly related to
production, such as lubricants, cleaning materials etc.

98
 •
Indirect labour:- Labour costs of people who are indirectly associated with
manufacture, management ,supervisors, cleansers ,maintenance, repair of
tube wells etc.

•
Indirect expenses: Indirect overhead costs are those costs which are
essential for production process. In brick industry, such type of costs are-
depreciation of equipments, machinery, vehicles, and buildings, power
generation, water arrangements, taxes etc. It includes salaries of units
permanent staff, Selling, Maintenance &Repairing expenses, Cost of camp
food, Medicine and labour amenities.etc.
4.2. iii. Classification of cost on the basis of the behaviour or variability in relation
to the volume of output
To analyse the cost of an industry, cost can be viewed from the side of
behavioural pattern. Generally two types of costs exist in brick industry ie fixed cost
and variable costs. A fixed cost is any expense that remains constant regardless of the
level of output. Variable costs are those expenses which are fluctuating directly with
the changes in the level of production. All variable costs are related to number of
production, but fixed costs are independent. Total cost of a firm increases at the same
rate as variable cost as because fixed costs are remain constant.
But in reality, in some cases, such distinction is not necessarily being permanent
or rigid in long run. All fixed costs are become variable in the long period. In brick
industry, some costs are featured by both variable and fixed components, which may be
termed as semi-variable cost.
On the basis of the cost behaviour of brick industry, some example of fixed and
variable cost of the samples units can be shown as follows.
Fixed costs include salary of permanent staff, Depreciation, Medicine and
labour amenities, Office Expenses, Vehicles Maintenance & repairing. Cost of camp
fooding. Lease Rent, other rent, Office expenses etc. Donation, Financial charges on
different heads.
The example of variable costs are --costs of raw materials(soil, sand),wages for
piece rate workers, salary for skilled workers on monthly basis, Cost of coal & other
fuel, Selling expenses including commission, discount, and advertisement etc.
99
 The Table 4.13 represents the Total cost, Fixed cost and Variable costs of brick
kiln units
Table:4.12 Total,Fixed and variable cost(Rs) of the sample brick kiln units.
Sl No Sample Total cost Fixed costs Variable
units costs
1 N-1 41094000 2325600 38768400
2 N-2 26232600 1276800 24955800
3 N-3 23062800 1436400 21626400
4 N-4 23332800 1368000 21964800
5 N-5 28727400 1691760 27035640
6 K-1 27232500 1624500 25608000
7 N-6 17159400 1036800 16122600
8 N-7 15769680 887040 14882640
9 N-8 15356600 921600 14435000
10 N-9 16343240 887040 15456200
11 N-10 19274200 1048800 18225400
12 N-11 17139550 940500 16199050
13 N-12 15715420 887040 14828380
14 N-13 18208480 1059840 17148640
15 N-14 17967520 884640 17082880
16 K-2 17259500 864000 16395500
17 K-3 18264400 1059840 17204560
18 K-4 16520720 898560 15622160
19 K-5 15496600 921600 14575000
20 K-6 12782700 604800 12177900
21 K-7 13315000 698400 12616600
22 N-15 15514100 921600 14592500
23 K-8 13783520 721920 13061600
24 N-16 20295360 1002240 19293120
25 K-9 13484800 750720 12734080
26 N-17 13130100 625650 12504450
27 N-18 17219700 838080 16381620
28 N-19 15148200 661500 14486700
29 N-20 17076020 820620 16255400
30 N-21 15734580 706560 15028020
31 H-1 13802180 611100 13191080
32 H-2 15582620 682880 14899740

100
 33 K-10 16398640 698880 15699760
34 K-11 13201800 564480 12637320
35 N-22 16075800 790400 15285400
36 N-23 12069400 615600 11453800
37 H-3 10239250 507600 9731650
38 N-24 11492750 532000 10960750
39 N-25 11144800 577600 10567200
40 N-26 10228600 543200 9685400

It is found from the above analysis of the units fixed and variable cost, the fixed
costs is very nominal in comparison to the variable costs. This analysis reveals that the
fixed cost percentage is very low and it indicates the minimum cost for the kilns and
starts the plant in that particular year. In brick kiln industry, the costs on kiln and land
are required at the initial stage of production. But in every year, some repairing has to
be done before the manufacturing has started. In every year, the cost on kiln and
building is very low. This traditional industry mainly depends on the variables costs
like raw materials, labour and fuel and other overhead costs. All sample industries are
labour intensive and share a higher percentage of total costs on labour and fuel as the
whole process is done manually.
4.2.iv . Total costs, Fixed and Variable cost of the units
Figure 4.9 (based on Table4.13) shows the fixed costs, variable costs and total
costs of the sample units. On the basis of the production capacity, all units are divided
into three categories, like –large, medium and small. The first 6 units are large units,
and they incurred high amount of total cost as well as variable costs. The rest units are
medium and small units. The wave of the curves clearly shows the pattern of costs,
which depends on the level of production.

101
Figure: 4.9 Variability of Total cost, Fixed cost, Variable cost of sample units
(2012-13)

4.2.v. Proportion of Raw materials, Wages, Fuel and other overhead expenses
On the basis of the collected data on production, the total costs can be grouped
into four major heads raw materials, labour, fuel and other overhead costs and the
relative percentage of the different costs of sample brick industries can be shown by the
following figure 4.10.
Proportion of Raw materials, Wages, Fuel and other overhead expenses of
sample brick industries are quite different .It is observed that the costs of raw material
( soil& sand) is high in Nagaon and Hojai sub divisions. But, in Kaliabor sub division,
the cost of raw material is less. Again it is found that the wages is different in all three
sub division. In Nagaon sub division,the wage rate of each category of labour(migrant)
is higher than the wage rate of Kaliabor and Hojai sub division. Majority of labours in
these areas come from nearby areas, which have less bargaining power. In case of other
overhead cost, there is a homogeneity found among the units, as all units are situated in
cluster in one area, and their production and marketing procedures is identical.

102
Figure: 4.10 Proportion of Different costs

*the vertical axis indicate the proportion of different costs and horizontal axis indicate
the different industries.( 2012-13)
All production units in three sub-divisions use coal as fuel and transported from
Meghalaya. As the cost of fuel is increasing day by day, the percentage of fuel cost is
high than the other production costs (more than 30% of total cost).From the analysis, it
is found that the percentage of fuel cost is less in large units than the small and medium
units ,due to the economies of scale.
The average costs of raw materials, wages, fuel and other overhead cost of the
sample units are 22.02%, 19.61%, 31.73% and 26.53% respectively. The proportion of
costs in all units is almost same. The fuel cost is comparatively high in small units than
the large and medium units. The percentage share of wage is less than the other costs in
every unit, which shows the economic condition of the labours.
4.2.vi. Determination of Cost: (Cost Sheet or Unit costing method)
“Unit costing” method is used in that industry where only one product or few
grades of same product is produced (Gupta & sarma,2013).To analyse the costs
incurred by brick kiln industries, a cost sheet is prepared to show the different types of
prime cost, work cost ,cost of sale etc. Here an attempt has been taken to prepare the
cost sheets of the sample unit on the basis of the data collected. Table 4.13 shows the
different costs (average) of the brick production in three groups (small, medium and
large) and find out the cost per unit of bricks and the profit. As bricks are counted and
103
sold in thousand, so it is regarded as unit. The costs are mainly prime costs, work costs,
office costs and the costs of sale etc.
It is observed that the production cost of per thousand Brick is different in three
groups of manufacturing units. In large units, the cost of per unit Brick is Rs 3411 and
the cost of per brick is 3.41 on an average. In case of medium production units, per unit
cost is Rs 3552 and in per brick is Rs 3.55. Again in case of small production units it is
found that per unit cost is comparatively high than other production units as its per unit
average cost is Rs 3607 and per brick cost is 3.61.
The large units have the benefit of economies of scale of large production and
therefore their production cost is less than the other categories of brick manufacturing
units (small and medium). Due to diseconomies of small scale production, the average
production cost is high in small manufacturing units in comparison to the other
categories. Among the medium manufacturing groups the G.S.Industry of Kaliabor
(K6) sub-division has the lowest cost of production, as this is the only one unit, which
is semi-mechanized and their labour charge is comparatively less than the other units.
The cost of Sandhya Bricks of Hojai Sub-division is the highest as the fuel and raw
material costs is higher than other units. Both units fall in the category of medium units
of production.
Table: 4.13 Average Cost Sheet of the sample units (Unit Costing)
Sl no 1 2 3
1.Sample unit Small Medium Large
2.Production 2975250 135208000 8265000
3.Particulars Rs Rs Rs
4.Raw materials 2128750 103258000 6615000
5.Wages 2027713 89929450 6309550
6.Fuels 3875925 160025590 7253250
7.Prime Cost 8032388 357287040 20177800
8.Factory overhead 540100 24612730 1620510
9.Cost of Production 8572488 381936430 21798310
10.Office & overhead 1215225 55378642 3646147
11.Cost of Production 9787713 43728412 25444457
12.Sell & Distribution 945175 43072278 2835892
104
13.Cost of Sale 10732888 480350690 28280350
14.Sale Value 13358556 536671267 10782795
15.Profit 2625669 184659217 39063145
16.Cost per thousand 3607 3552 3410.67
17.Cost per Bricks 3.61 3.55 3.41

4.2.vii. Estimated Total Cost Function of the sample units:

The behaviour of the cost of the brick industry can be explained by an estimated
cost function. Different cost function were run (quadratic or cubic cost function could
not be fitted) and the most appropriate cost function is a linear one. The production of
bricks (in one year) mainly depends upon the variable cost (raw materials, labour and
fuel and overhead cost).
The Variable Cost and Total production of the units can be shown by the
visually drawn Total variable Cost curve in the scatter diagram. The relationship
between TVC(Y) of Bricks to the level of the final product (output X) shown in the
scatter diagram reveal the relationship between VC(Y) and Fp (X) is linear.
To quantify this relationship from the given scatter points, a linear regression
function is fitted and it is represented by the following equation. The behaviour of the
variable cost of the brick industry can be explained by the estimation of this cost
function.
Y = β0 + β1 Xi + Ui
Y = 2.742* + .883 X*
(.732) (.048)
R 2=.901 Adjusted R 2=.898
* implies 1% level of significance.
(The figures in the parenthesis are the estimated standard errors)
The estimated cost function gives an idea about the amount of variable cost
depending upon the quantity of production. Plotting of different values of dependent
and independent variables in a graph indicate that an increase in production, cost also
increases.

105
 Since, Brick production in one year mainly depends on the cost of raw materials,
the cost of direct labourers and fuel costs, so increasing volume of production rise the
total cost of the industry.
Figure: 4.11 Total Variable costs of sample units.

The visually drawn variable cost curve in the scatter diagram (Figure-4.11)
shows a linear relationship between the dependent variable VC (Y) and independent
variable Final Product (Output, X)
4.2. ix. Cost-Volume-Profit analysis of the sample units
To analyse the Cost-Volume-Profit relation of the sample brick industries,
among different types of C-V-P analysis, (Kaplan and Atkinson, 2000) model is used.
This model works from the general profit equation. The table 4.14 represents the result
of the analysis of C-V-P of sample units.
(i) Unit Contribution: Column 6 of the Table 4.14shows the contribution margin per
thousand of bricks in 40 units in study areas. It is found that the highest contribution
margin per unit of one thousand bricks is Rs 1974 and the lowest one is Rs 307 with an
average contribution margin of Rs 1088. It helps management in taking many
managerial decisions. Prices are determined on the basis of marginal cost by adding
‘contribution’ which is excess of sales or selling price over marginal cost of sale.

106
(ii)Profit Volume Ratio (P/V Ratio or C/S Ratio): The Profit/volume ratio, which is
also called the ‘Contribution Ratio” or ‘Marginal Ratio’ and express the relation of
contribution to sales. Higher the ratio more will be the profit and lower the ratio lesser
will be the profit. In Table 4.14, the P/V ratio of the sample unit’s show that the
maximum P/V ratio is 42.4%and the minimum one is 7.14% with an average of 24.9%.
It is clear that the industry could earn a handsome profit as the fixed cost in the industry
is comparatively low.
(iii)Break Even Point: In the Table 4.14, column 8 represents the BEP of sample
units. It is observed that among the sample units the lowest break even sales is Rs
16407.88.representing only 2.6% of total sale of that unit and the highest one is Rs
81639.05 representing 44.2% of total sale and the average breakeven level is 20.4 %
(BEP sale Rs 43115.45).
It is found that many sample units have low level breakeven point. Especially in
case of the large production units, they procure high amount of profits. They have many
scopes to increase their sale. But the medium and small units have some problems of
high costs .In Many units, the BEP is much below the average level. (iv)Margin of
safety: Margin of safety is an important indicator of the strength of a business. From
the analysis of financial data of the sample units in Table 4.14, it is found that the
highest margin of safety comes out 92.9%.and the lowest one is 25.1% with an average
of around 78.3 % indicates the financially sound position of the industry. It is also
found that the industry is 78.3 % sale from its breakeven point or it will not suffer any
loss up to the extent of 78.3 % fall in sale. In case of high margin of safety, the
production unit is in a low breakeven level and there is no immediate threat of incurring
losses. A low margin of safety indicates the possibility of incurring losses and the
position of the business is comparatively weak. Such situation can be improved by
increasing the sale price or volume or by reducing the fixed and variable cost or both.

107
 10
5

109
4.3. Income and Employment generation
Till now, clay bricks are used as main inputs in construction sector in India. But
these brick manufacturing sectors are unorganized, tremendous in sizes and spread as
cluster in villages and semi –urban areas. In order to meet the increased demands for
construction, brick Kiln industries are expanding rapidly and provide employment
opportunities too many people directly and indirectly.
Here, efforts are made to find out the income and employment pattern of the
industry.
4.3.1. Pattern of employment generation of the sample units
The seasonal brick industries have high employment potentiality. It is to be
noted that all units are situated in semi-urban areas or villages, especially in well
connected road transport system. With very traditional labour intensive method of
production, three major categories of labour -skilled, semi-skilled and (contracted and
casual) and unskilled labour (contracted and casual) are working in such brick
manufacturing units. Contracted labours are regularly employed on some oral contract
or on some particular understanding during the production season. But casual workers
are not continuously employed and they are working irregularly in a single production
unit.
Srong division of labour is followed in brick manufacturing, from beginning to
end of the production. All works have done by different groups of workers very
systematically. The whole process of production, from collection of raw materials to
finished product is done by different categories of labours. The number of workers
engage in different works are varies differently on the basis of the level of production.
4.3.1. i. Employment of First category of workers
Collection of raw materials (Soil) to the brick fields is very important part of
brick manufacturing. The workers, who cut and collect soil, are not directly engaged in
brick making. The manufacturers either collect soil directly by themselves through their
staff or through some other persons. Generally, the owner collects soil from his own
brick field, but within few years, the surrounding areas are occupied for allied activities
by the kiln owner and scarcity arises. Under such circumstances, the required soil is
supplied by a separate agency from other place or the owner collect through own
employee. Such workers are unskilled workers (both male and female). Before starting
the production process, it is customary in the brick industry to store the raw materials
(soil and sand) in huge quantities. The cost of soil in nearby areas is less than the price
of soil collect from distance place due to transportation cost. During survey it is found
that cost of soil is comparatively higher in Nagaon sub-division than in Kaliabor and
Hojai sub-division.
4.3.1. ii. Employment pattern of second category of workers
The second categories of workers in brick industry are directly related to the
production of bricks and work in a very systematic manner. Specialization of work is
strictly followed in such production units.
Preparation of green bricks is done by semi-skilled group Patheras (Green
Brick maker). They are the most important workers as they make the green bricks in
proper ways. Crushing and mixing of clay in right proportion, shaping the material in a
specified way, looking after the green bricks in Sun-shine are performed by Patheras.
The other related works are done by other group of workers in a very systematic
manner. Specialization of work is strictly followed in brick industry.
During the month of October, Patheras come to the brick fields with their
family. In the afternoon or early evening, clay is prepared for the next day by mixing it
with water, and vigorously turning the mixture a few times. Next day morning, the
whole family has started to make green bricks. Generally, on an average a Pathera can
make 4000 bricks in a week. All the family members are engaged (including children
and female members of the family) in production of green bricks, but the account is
made only the name of head, as the family work as a unit. They also arrange the green
bricks in the Sunlight to dry. Most of the Patheras are resided in work site.
The Sundried bricks are loaded from the adjacent brick field and transported to
the kiln by Rejja. Such carrying of green bricks to the kiln is performed by female
labour on piece rate system. They are local/ or migrant unskilled labour. Dried bricks
are transported by Rejjas and then handed over inside the kiln to a couple of loader for
stacking up under the supervision of a mistri. Such loader or bhajaimistri arrange the
bricks in systematic way and ensure uninterrupted kiln operation, additional bricks will
also be stacked up on the site. These stocks allow kilns to operate for a fortnight or
more without concurrent output from patheras. The stocks are also handy for especially
large scale orders.
111
 Inside kiln, bricks are covered with a mixture of mud and burn the bricks by one
or two site-based Karigar or mistri. Baking is done by a team of four to five site-based,
salaried, firemen, working in six-hour shifts of two persons throughout the week. This
team is headed by a skilled mistri, who usually recruits other team members. Burn the
bricks is the most hazardous because of work with open fires Kiln openings(hole) have
to be examined frequently as a way of determining whether additional fuel is necessary
to keep a proper baking temperature.
Burnt bricks are removed –six days a week-from the kiln by
Nikasiwalas/Bakider, sorted for quality and then stacked up nearby for customers.
Generally, a kiln has a week’s output ready to be unloaded from the kiln and like this;
continuously bricks are burnt for 5-6 months in every season.
4.3.1. iii. Employment pattern of third categories of workers
The third categories of workers are not directly related with production, but they
are indirectly related to the whole production system from beginning to marketing,
maintenance of office and accounts of production, selling, and advance trading, liaison
with Government departments, security and other related works. Such employees are
permanent in nature, work for the whole year on monthly payment system.
4.3.2. The Number of second category workers
From the survey, it is found that with strong division of labour, all the units are
characterized by some homogeneous nature. All traditional labour intensive units
provide employment too many semi-skilled and unskilled labour as very temporary
basis .The employment of labourers depends on the burning capacity of the kiln and the
kiln owners plan to make green bricks according to his previous years overall
transactions.
From the figure 4.12, it is clear that the numbers of workers varies in the units.
The large production units employ Patheras (100-140) for the whole production period.
Such workers are living at the work site and work from Sunrise to Sunset on the piece
rate system. Among the medium units, the number of Patheras are between (55
100).Generally it depends upon the requirement of works. The output of small units is
not very high; therefore the number of Patheras is less than the other units. From the
survey, it is found that total number of Patheras in all sample units is 2927 and in on
average it is 73.2.
112
 The other categories of workers are also almost same in every unit. The highest
number of Bakider is 60 in a large production unit in Nagaon sub division and lowest
17 in a small production unit in Nagaon sub division. The total number of Bakider in all
sample units is 1416 and on average it is 35.4.
Again the highest number of Rejja is 80 in (N-2) and lowest is 21in (N-26)
sample unit. The total number of Rejja in all sample units is 1835 and the average
number is (45.9).From the survey it is found that the number of skilled labour (Mistry)
is 13(one head mistry+12 assistants) in all large units and in medium units employ 09
(01+08) and in small unit, the number of skilled labour is 08.The total number of Mistry
is 379 and on an average it is 9.5.The overall picture of labour employment can be
explained in the following figure.
Figure: 4.12 Different numbers of workers in sample units

From the analysis of labour employment, it is found that the number of Patheras
(green brick makers) is quite high in all sample units in comparison to other category of
workers. The next category is Rejja and followed by Bakider. The number of skilled
labours (Mistry) is very few and it is found that the number is quite less than the other
category of labours. It is also observed that there is some similarity in employment
pattern among all units and number of labours is high in large units than the medium
and small units.

113
4.3.3. The average employment, wages of the second category of workers
From the Table-4.15, it is found that the average number of Pathera is 117 in
large sample units and the average wage rate for per thousand of bricks is Rs 510.In
medium units, the average numbers of Patheras are 69 and followed by small units 42
Patheras. In case of average wage rate prevailed in medium units are Rs 416 and in
small units it is Rs 390.
Again in case of Bakider , the large sample units have high number of labourers
as on average is 55 and their average wage rate is Rs 80, but in medium units the
number of Bakider is on an average 35 and their average wage rate is Rs 70 ( per
thousand). The number of Bakider in small units is only 20 on an average and their
recorded wage rate for the 1000 bricks carrying is Rs 70.
Table: 4.15 Average employment, wages of the second category of workers
Large Units Medium units Small Units
Category
of worker Average Average Average Average Average Average
No Wage rate No Wage rate No Wage rate
Workers (per Workers (per Workers (per
000bricks) 000bricks) 000bricks)
Pathera 117 Rs 510 69 Rs 416 42 Rs 390
Rejja 73 Rs100 45 Rs 90 23 Rs 90
Bakider 55 Rs 80 35 Rs 70 20 Rs 70
Mistry 13 Rs 5500 09 Rs 5500 08 Rs 5200.

In large units, the average number of Rejjas, are 73 and the average wage rate is
Rs 100.But in case of medium and small units, it is found to be different from large
units. Rs 90 for per 1000 bricks carrying are the average wage rate in both small and
medium brick kilns. The average number of Rejja in medium units is 45 and in small
units are 23.
In case of skilled labour (Mistry), on an average 13 labours in large units, and in
medium and small units it is 09 and 08.Again, all such labours receive Rs 5500 as an
average in both large and medium units, but in case of small units it is reported as Rs
5200.
The wage rate is comparatively high for all categories of labourers in large units
than the medium and small units. Most of the workers in large units come from outside
114
(migrant) and their wage rate is high. But in small and medium units, most of the
workers come from nearby areas .Such casual labourers have less bargaining power and
work at low wage rate.
4.3.4. Income Generation of the sample units: (Profitability analysis)
Profits are the measure of overall efficiency of a business. The higher profits, indicates
the higher efficiency of the business concern. To analyse the overall profitability, an
“Income Statement” or “Profit and Loss Statement” is a summary which is prepared to
show a firms profit or loss during a given period of time.
4.3.4. i. Income Statement
From the collected data regarding the production and sell, the following Income
Statements of the sample units has been prepared (Table: 4.16).This statement gives an
idea about the performance of the sample units. It is found that most of the units earn a
sizeable amount of profits. The unit N-1 has the maximum gross margin of Rs
25,413,600 and the unit H-1 procures minimum gross margin Rs 32, 26,744. The
average gross margin of the sample units is Rs 8803021. All the large production units
earn high amount of gross profit than the medium and small units. The production costs
of large units are less than the small and medium units. From the Table 4.17,it is
observed that 27 units (67.5%) earn less than the average gross profit and the other
13units (32.5%) earn more than the average gross profit of the industry. All the large
units (06) and other (07) medium units fall in this group. In case of net profit, the
maximum is Rs 13,78,5600 of the unit N-1 and the minimum is Rs 98718 of N-17.The
average net profit of the selected units comes to be Rs 4183618. In case of net profit,
16(40%) number of units earn more than the average net profit and 24(60%) units earn
less. Again, among 16 units, 06 units are large scale production group and other 10
units are medium scale production units. It is observed that the profitability of the
industry is very high .The gross profit and net profit of all small scale production units
are less than the average profit ratio. From the analysis, it is found that the profitability
is mainly depends on the manufacturer’s financial and managerial efficiency. All the
units earn a sizeable amount of profit. Among all samples, the unit N-1 earns a high
range of profit in Nagaon sub division as it is recorded as the largest Brick Kiln unit in
Nagaon district.

115
Table:4.16 Performa Income statement of the sample units (2012-13)
Sample Production Sale Direct Exp Gross Indirect Net
units (000) value(Rs) (Rs) Profit(Rs) Exp(Rs) Profit(Rs)
N-1 11400 54879600 29466000 25413600 11628000 13785600
N-2 7980 37657620 19848600 17809020 6384000 11425020
N-3 6840 33525120 15880800 17644320 7182000 10462320
N-4 6840 35469960 16492800 18977160 6840000 12137160
N-5 7980 36261120 20268600 15992520 8458800 7533720
K-1 8550 36585450 19110000 17475450 8122500 9352950
N-6 4320 18468000 11975400 6492600 5184000 1308600
N-7 4032 16934400 11334480 5599920 4435200 1164720
N-8 3840 17913600 10748600 7165000 4608000 2557000
N-9 4032 17398080 11448440 5949640 4435200 1514440
N-10 4560 19626240 14030200 5596040 5244000 352040
N-11 4275 18356850 13249300 5107550 4702500 405050
N-12 4032 16789240 11284620 5504620 4435200 1069420
N-13 4608 19514880 12909280 6605600 5299200 1306400
N-14 4656 20207040 13544320 6662720 4423200 2239520
K-2 4800 20697600 12027920 8669680 4492800 4176880
K-3 5760 23644800 10888680 12756120 4608000 8148120
K-4 4992 20367360 9974700 10392660 3024000 7368660
K-5 4608 18849792 9818000 9031792 3492000 5539792
K-6 4320 17258400 10906100 6352300 4608000 1744300
K-7 4365 18054240 10173920 7880320 3609600 4270720
N-15 4608 18170244 12939500 5230744 4320000 910744
K-8 4512 18939872 9731200 9208672 5011200 4197472
N-16 5568 25724160 12965200 12758960 5299200 7459760
K-9 4416 18120320 10001850 8118470 3753600 4364870
N-17 4171 17294078 15284160 2009918 1911200 98718
N-18 5238 22008330 11840700 10167630 3307500 6860130
N-19 4410 18904200 12949730 5954470 4103100 1851370
N-20 4559 19658408 12165920 7492488 3532800 3959688
N-21 4416 18503040 13029300 5473740 3128250 2345490
H-1 4074 18167324 14940580 3226744 3055500 171244
H-2 4268 18700953 11757680 6943273 3414400 3528873
K-10 5376 23674829 13324620 10350209 4190400 6159809

116
 K-11 4032 18567360 9913840 8653520 2822400 5831120
N-22 4940 19503120 12823000 6680120 3952000 2728120
N-23 3420 14774400 9305800 5468600 3078000 2390600
H-3 2820 12322272 7527400 4794872 3494400 1300472
N-24 3325 14718113 8832750 5885363 2660000 3225363
N-25 3040 13308106 8256800 5051306 2538000 2513306
N-26 2716 13085734 7512600 5573134 2888000 2685134
4.3.4. ii Profitability Ratios
Every business should earn sufficient profits to survive and grow over a long
period of time. Generally, the earned income in the way of profit is regarded as its
efficiency. Profitability ratios are calculated to measure the efficiency of a business.
Here an attempt has done to calculate the profitability of the sample brick industries
with the following ratios based on sales.
i) Gross Profit Ratio ii) Net Profit Ratio
From the analysis of the above Table- 4.17, it is observed that among the
sample brick units, the maximum gross profit ratio is 53.95% earned by K- 3 (a medium
unit in Kaliabor sub-div)and the minimum one is 11.63% earned by N 17, a medium
unit in Nagaon sub division. The average gross profit is calculated as 41.84%.This
figure indicates the average margin of profit on the bricks sold. Most of the units
operate efficiently with sufficient earnings. Among the 40 sample units, the gross profit
ratio of 17 units are more than the average ratio (41.845%) and nine (09) units have the
gross profit ratio less than 35%. Only one unit has comparatively very low gross profit
ratio(11.62%).Such high rate of gross profit ratio is a indicator of good financial
position of the owner ,who can make arrangement for fixed and working capital. It is a
sign of good management. On the other hand, a low gross profit ratio indicate a higher
cost of production or due to low selling prices or less in market demand.
The net profit ratios of the sample units show the firm ability to turn each rupee
of sales into profit. It indicates the efficiency with which a business can be managed. A
firm with a high net profit ratio is in a good position to survive. By making comparisons
of net profit with other industry or with the previous years, the producer can have some
scope for improvement. From above Table-4.18 it is observed that the sample unit K-4
has the maximum of 36.18% and the minimum of 0.57 %( N-17). The average net profit

117
ratio is 19.76% indicates a good profitability ratio of the producers. Unit N-17 procures
a very less amount of net profit ratio due to high manufacturing cost and indirect cost.
Table:4.17 Profitability Ratio (based on sales) of the sample units.
Sl. Sample Production Sale value Gross Profit Net Profit
No Units (000) (Rs) Ratio (%) Ratio(%)
1 N-1 11400 54879600 46.31 25.12
2 N-2 7980 37657620 47.29 30.34
3 N-3 6840 33525120 52.63 31.21
4 N-4 6840 35469960 53.5 34.22
5 N-5 7980 36261120 44.1 20.78
6 K-1 8550 36585450 47.77 25.56
7 N-6 4320 18468000 35.16 7.09
8 N-7 4032 16934400 33.07 6.88
9 N-8 3840 17913600 40 14.27
10 N-9 4032 17398080 34.2 8.71
11 N-10 4560 19626240 28.51 1.79
12 N-11 4275 18356850 27.82 2.21
13 N-12 4032 16789240 32.79 6.37
14 N-13 4608 19514880 33.85 6.69
15 N-14 4656 20207040 32.97 11.08
16 K-2 4800 20697600 41.89 20.18
17 K-3 5760 23644800 53.95 34.46
18 K-4 4992 20367360 51.03 36.18
19 K-5 4608 18849792 47.91 29.39
20 K-6 4320 17258400 36.81 10.11
21 K-7 4365 18054240 43.65 23.65
22 N-15 4608 18170244 28.79 5.01
23 K-8 4512 18939872 48.62 22.16
24 N-16 5568 25724160 49.6 29
25 K-9 4416 18120320 44.8 24.09
26 N-17 4171 17294078 11.62 0.57
27 N-18 5238 22008330 46.2 31.17
28 N-19 4410 18904200 31.5 9.79
29 N-20 4559 19658408 38.11 20.14
30 N-21 4416 18503040 29.58 12.68
31 H-1 4074 18167324 17.76 0.94
32 H-2 4268 18700953 37.13 18.87
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 33 K-10 5376 23674829 43.72 26.02
34 K-11 4032 18567360 46.61 31.41
35 N-22 4940 19503120 34.25 13.99
36 N-23 3420 14774400 37.01 16.18
37 H-3 2820 12322272 38.91 10.55
38 N-24 3325 14718113 39.99 21.91
39 N-25 3040 13308106 37.96 18.89
40 N-26 2716 13085734 42.59 20.52
Average 4917475 21565106 41.84 19.76
The Table 4.17 also reveals that the difference between the gross profit ratio and
net profit ratio is very high in many sample units. It is mainly due to high indirect costs
and lack of sale and demands in the market. As the numbers of brick industries are
growing very rapidly, high competition prevailed in the market. The net profit ratio of
19 units are less than the average net profit ratio .Again, the net profit ratio of 21 units
are higher than the average net profit ratio. It is also observed that, in many industries
the gross profit ratios are very high, but the net profit ratios are comparatively very low
especially in medium brick industries, indicating that the indirect costs of manufacture
and sell is very high. The high indirect costs include the costs of depreciation, financial
charges for working capital etc. In the Table 4.17 it is found that the highest gross profit
ratio is 53.5%, but their net profit ratio is 34.22%.Though there is difference between
these two ratios, but both ratios are much higher than the average ratios of the
industries. In calculations of net profit, all non-operating expenses and losses (e.g. loss
on sale of old assets, provision for legal damages, etc are deducted.)
4.3.4. iii. Gross income generation of the Industry
The gross income generation of the Brick Kiln Industry of Nagaon district can
be estimated by the following way.
Average Gross value addition per unit(Y) = Sum of Gross value addition of sample
units/No of sample units.
Y= Rs 345922235/40
Y= Rs 864806.00
Estimated Gross income generated in the Brick Kiln Industry in Nagaon District =Y
x Total number of brick Kiln Industry in Nagaon District.
= Rs 864806x108
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 =Rs 9, 33,990048. (Appox)

4.4 Socio- economic condition of brick kiln workers

In order to understand the socio-economic and educational background of the
kiln workers, the researcher designed an interview schedule for sample workers; belong
to both migrant and local labour. There was no selection criterion for the workers for
this survey. All the workers who could be motivated and persuaded to furnish the
required information are included in the survey. Attempt is done to cover every
category of workers from both genders.
4.4.1. Distribution of sample workers according to their occupation
There is strong division of labour exists in brick kiln industry. Whole
manufacturing process is done by different categories of labourers .Out of 410
labourers, 125 (30.5%) are patheras, 115 (28.0%) are Rejja and 110(26.8%) are Bakider
and 37(8.8%) are Mistry, 07 (1.7%) are night chawkider and 17 (4.1%) are office staff.
Again, out of 290 male workers, 113(39%) are pathera, 102(35.2%) are Bakider, and
15(5.2%) are Rejja, 36 (12.4%) are Mistry and 7 (2.4%) are Night Chawkider, 17
(5.9%) are office staff.
Among the female workers, the highest group consists 100(83.3%) Rejja, 12
(10%) are Pathera and 8 (6.7%) Bakider. No any female worker is found as Mistry and
office staff (Table 4.18).
Table: 4.18 Distribution of sample workers according to their occupation
Workers name Male Female Total

Count % Count % Count %

Pathera 113 39 12 10 125 30.5
Bakidar 102 35.2 8 6.7 110 26.8
Rejja 15 5.2 100 83.3 115 28.0
Mistry 36 12.4 . 36 8.8
Night
7 2.4 7 1.7
Chawkidar
Office Staff 17 5.9 17 4.1
Total 290 100 120 100 410 100.0

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4.4.2 General characteristics of the kiln workers 4.4.2 .i Age and Sex Composition
The survey covered the age structure of the 410 labourers in both male and
female. In Table 4.19, it is found that among 410 of workers, male number is 290
(70.7%) and female number is 120(29.3%). Majority of male workers are belonged to
the age group of 26-30 years i.e. 83(28.6%) and among the female workers, majority of
women workers are belonged to the age group of 21-25 years ie 40(33.3%).Again the
next major group of male workers are 31-35 years of age i.e. 78(26.9%) and in case of
female it is 26-30 group of years 28(23.3%).In the group of 36-40 years , male workers
are 36 (12.4%) but the female workers are only 09(7.5%).It is observed that in the
group of 41-45 years, the male workers are 22(7.6%)but among female, it is only
21(17.5%). Again, another age group less than 20 years, the number of female worker is
(5.1%) and male is 15(5.2%).
It is observed that the female workers have joined the work after their marriage
at early age. The kiln works require high physical strength, so the majority of workers
are belonging to the comparatively young age group.ie 26-30 years of age. Due to
heavy workload and the responsibility of household works and looking after their
children, the female workers are unable to continue their works for years in brick field
as the piece rate system is strictly followed in brick kiln industry.

Table: 4.19 Age Structures of workers.

Age-group Male Female Total

Count % Count % Count %

>20 15 5.2 21 17.5 36 8.8
21-25 46 15.9 40 33.3 86 20.9
26-30 83 28.6 28 23.3 111 27.1
31-35 78 26.9 11 .9.2 89 21.7
36-40 36 12.4 09 7.5 45 10.9
41-45 22 7.6 5 4.2 27 10.0
46-50 06 2.1 4 3.3 10 6.6
50< 04 1.4 2 1.7 6 1.5
Total 290 100 120 100 410 100
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 From the survey, it is found that workers in age group up to 26-30 years are in
large number. Since the wives, unmarried brothers and sisters and children of these
workers also worked with them, who were much younger in age, it can be said that the
age of the workers covered by the survey is largely composed of young people.
4.4.2.ii Marital status:
It is observed that 328(80%) of the workers are married .Most of workers live in
the worksite and work the whole family. To support the family, the workers both male
and female got married at an early age. Only 48(11.7%) workers are not married, and
02(.5%) divorce (separated from their spouse) and 32(7.8%) are widow / widower. It is
found that some are of younger age group work to help their parents. Some labourers do
not have anyone to rely on and some have their older family members dependent on
them.(Table: 4.20)
Table: 4.20 Marital Status of workers.
Sex Total

Male Female

Count % Count % Count %

Married 254 87.6 74 61.7 328 80.0
Unmarried 21 7.2 27 22.5 48 11.7
Divorce 1 .3 1 .8 2 .5
Widow/
14 4.8 18 15 32 7.8
Widower
Total 290 100 120 100 410 100.0

4.4.iii. Educational status of workers

Education is one of the important indices of the social status of an individual in
a society. An educated man can take rational decision with regards not only his/her
family in micro level, but also in workplace or any other place wherever necessary. So
level of education, types and quality of education may be considered to be an
instrument for knowing the social as well as personal status of an individual in a
society. The following are the educational status of sample workers in three study areas.
(Figure 4.13)
Figure: 4.13 Educational statuses of workers.
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4.4.2.iii.i .Literacy rate.
Education is an important tool for the analysis of socio-economic status of
labour. From the survey, it is found that the literacy rate is very poor among the sample
brick kiln workers. Out of 410 labourers, 262 (63.9%) labourers are illiterate and only
148(36.1%) workers are literate. Among 290 male workers, 110 (37.9%) are literate and
180 (62.1%) are illiterate. Out of 120 female workers 82(68.3%) illiterate and only
38(31.7%) are literate (Figure-4.13).
On the basis of the Table 4.21, according to the Census report 2011, total
literacy rate in all India level is 74.04%, in Assam it is 73.18 and in Nagaon district it is
73.78%. But the total literacy rate among the sample kiln workers is only 36.1%.
In case of Male literacy rate according to 2011 census in all India, the rate is
82.14% in Assam is 78.81% and in Nagaon district it is recorded as 78.19%. But
from the survey it is found that among the brick kiln workers the rate is only 37.9 %.
Again in case of female literacy rate ,the results shows a very discriminating situation
where the female literacy rate is in India level it recorded as 65.46% in Assam
67.3% and in Nagaon district it is 69.21% But among the female kiln workers it is
found as 31.7%.
Table:4.21 Literacy Rate of Kiln workers, Nagaon district, Assam and all India
Kiln workers Nagaon Assam India
Literacy
rate

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 Total 36.1% 73.78% 73.18% 74.04%

Male 37.9% 78.19% 78.81% 82.14%

Female 31.7% 69.21% 67.27% 65.46%
Source: Census Report, 2011.
From the analysis of above data, it is observed that the literacy rate among kiln
workers is pathetic. Their literacy rate is far behind than the district, state and all India
level. Poor economic condition, ignorance and migratory nature are most responsible
factors for such situation.
4.4.2. iii.ii Education level
On the basis of the Table:4.22, it is found that among 148 literate workers
44(29.7%) study up to primary level, 62 (41.9%) are educated up to class VI,
39(26.4%) are educated up to class 10th, and only 03 (2%) are educated above HSLC.
Again, among male workers, 30(27.3%) study up to primary level, 44(40%) had
attended school upto class VI, and 33(30%) had educated up to X th standard only
03(workers study above HSLC. But in case of female workers, this scenario is very
pathetic. Among female workers only 38(37.1%) are literate. In that 14(36.8%) women
labourers had primary education. about 18(47.4%) women workers had high school
education up to class VI level. Only 6(15.8%) were studied up to class X th standard .It is
noticed that the illiterate number of female workers belong to the Muslim community is
very high. Again, the younger age groups were better educated and most of them are
belonging to tea-tribe community and work in brick kilns as a temporary in nature.
Table:4.22 Education Level of workers.
Sex Total

Male Female
Level of
education Count % Count % Count %
Primary 30 27.3 14 36.8 44 29.7
Upto VI 44 40 18 47.4 62 41.9
Upto X 33 30 6 15.8 39 26.4
Above
3 2.7 -- --- 3 2.0
HSLC

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 Total 110 100 38 100 148 100.0

From the above analysis, it is observed that majority of the workers are illiterate.
Among the literate group, majority of workers had middle school level education,
followed by primary education and high school level. A very small portion of the
workers (male only) had passed HSLC. These results indicate the fact that the literacy
rate of workers is confined only to the lower level of education, ie primary to high
school levels.
4.4 .2 . iv. Caste wise division of workers
Caste is another important factor which prevails in a country like India. It is
observed that landless workers of lower caste compose the major portion of workforce.
Generally, poverty, non-availability of work in their native place, irregular work, and
indebtedness compels the workers to work in brick fields.
The caste wise distribution shows that majority of workers is belonged to the
general caste. Out of 410 workers, 184 (44.9%) are general caste, 100 (24.4%) are SC,
48 (11.7%) are belonged to ST category. Another group of workers 57(13.9%) are come
from the Tea-tribe groups and 21(5.1%) are belonged to backward class. Analysis
reveals that among the general caste, majority of workers belong to the Muslim
community.(Table:4.23)
Table:4.23 Distribution of workers according to their Caste
Sex Total

Male Female

Count % Count % Count %

SC 67 23.1 33 27.5 100 24.4
ST 37 12.8 11 9.2 48 11.7
Tea
35 12.1 22 18.3 57 13.9
Tribe
OBC 13 4.5 8 6.7 21 5.1
General 138 47.6 46 38.3 184 44.9

Total 290 100 120 100 410 100.0

125
4.4 .2. v. Religion
From the Table 4.25, it is found that among the sample workers, different
religious people are working in different brick fields. .Out of 410 sample workers
(including all categories of labourers), majority of workers are Hindu 219 (53.4%),
followed by Muslims 148(36.1%) and only 43(10.5%) are Christian.

Table: 4. 24 Workers Religion

Sex Total

Male Female

Count % Count % Count %

Hindu 156 53.8 63 52.5 219 53.4

Muslim 108 37.2 40 33.3 148 36.1
Christia
n 26 8.9 17 14.2 43 10.5

Total 290 100 120 100 410 100.0

4.4 .3. Workers distribution by origin

Two types of kiln workers are found in the brick fields - migrated workers and
the local workers. Those workers brought from other district or states and
accommodated at the kiln site for the whole season have been termed as “migrated
workers” while those who come to work site and go back to their respective villages
daily have been termed as “local labour”(Kumbhar,2009). The sample workers are also
categorized according to their origin. It is observed that the majority of kiln workers are
local; they come from nearby areas and villages. It is found that brick kilns are
previously occupied by migrant workers, but now the rate of migrating labours are
become less. The following table explains the structure of workers according to their
origin.
Table 4.24 reveal that out of 410 workers, 205 (50%) workers are local worker,
they are come from nearby villages, and from some distance place within the district.
The workers who come from nearby areas are generally come by tractor or truck

126
provided by the owner .The kiln owners pay the transportation charges. Some workers
walk to the kiln.
The next group is interstate migrant workers 126(30.7%).They are come from
Bihar, Ranchi, Jharkhand, and Chhattisgarh. They migrate to the brick kiln sites during
the production season and live in the site in a temporary house. 79(19.9%) workers are
originated from other district like Dhubri, Kokrajhar, and from Tejpur, Dhekiajuli,
Bishanath Chariali etc. The labour resides at the brick field, live in isolation from the
local population with their own culture, traditions and customs. Isolation from the local
population gives rise to crimes such as theft and gambling which are common.
From the analysis of the data, it is found that, out of 290 male workers
150(51.7%) workers are local and majority of them are belonged to the Muslim
community, and 85 (29.3%) are interstate migrant workers and 55 (18.9%) are inter
district migrant workers. Among the female workers, 55 (45.8%) are local workers
come from nearby areas, and 41(34.2%) are migrant workers from other state and
another 24(20 %) workers come from nearby district (Figure 4.14).

Table: 4.24 Distribution of workers by their origin

Origin Male % Female % Total %
Local worker 150 51.7 50
55 45.8 205

Inter State Migrant 85 29.3 41 34.2 126 30.7

Inter District 55 18.9 24 20 79 19.3
Migrant
Total 290 100 120 100 410 100.0

127
 Figure:4.14 Distribution of workers by their origin

4.4 .4.i Methods of recruitment of labour

Like other unorganized sectors, the Brick kiln owners do not follow any government
rule and regulation to recruit their labourers. Almost all the employers depend upon
intermediaries in order to establish contact with labourers in the villages and to bring
them to the work site. Generally, the middle man is the Sarder, who plays the vital role
to capture the marginal laborers from different places on the basis of some commission.
The brick kiln owner gives some advance money (Dadan) to the Sarder and accordingly
he gathers the workers of both sexes.Generally, the owner employ physically strong and
energetic workers and prefer both husband and wife with their children.
From the survey, it is found that majority of labourers 276(67.3%) are recruited
by Sarder on commission basis. Such labouers are generally migrated labour from
Bihar, Jharkhand, and some district of Assam also. Another 128(31.2%) are recruited
by the owner directly and such labouers are come from nearby areas.4 (1.0%) recruited
by Head mistry and 2(.5%) are recruited by the manager.
Among, 290 male workers 187(64.5%) are recruited by the sarder, 97(33.4%)
are recruited by the owner, and 4(1.4%) are recruited by head mistry and only 2(0.7%)
are recruited by the manager. Out of 120 female workers, 89(74.2%) are recruited by
Sarder and 31(25.8%) are recruited by owner directly. Generally the local labourers are
directly recruited by the owner in production season without commission. (Table: 4.25)

128
 Table: 4.25 Method of Recruitment
Sex Total

Male Female

Count % Count % Count %

By Owner 97 33.4 31 25.8 128 31.2
By Manager 2 0.7 0 0 2 .5
By Sardar 187 64.5 89 74.2 276 67.3
By Head
4 1.4 0 0 4 1.0
Mistry
Total 290 100 120 100 410 100.0

4.4.4.ii Working hours of the workers

Normally the working day of a labour would be of eight hours. But it is not
applicable in brick kiln industries. The working schedule is different for each category
of labourers. During survey, it is found that all workers are appointed on the piece rate
system (office staff and mistry are monthly basis), so they always try to make more
quantity by working long duration.
55(13.4%) workers have worked from dawn to Sunset, with some break.
Generally, Patheras are fall in this category and they have lived in brick field.
211(51.5%) workers work from 6 to 11 a m and 1 -4/5 pm. (Rejja and Bakider are fall
in this category.)Another group of workers, 121(29.5%) work from 8 am to 4.30/5.30
pm and they come from nearby areas, transported by the owner (Truck or Tractor).They
are local labour. Mistry and office staff 23(5.6%) has no any fixed time, whenever they
are required, they have provided their services.
It is really distressing to note that in the Brick field, no work schedules are
followed by the owner. Though almost all of workers or owners claim that the working
hours from 8 a.m. to 5 p.m. but the collected information reveals that the working hours
vary according to the types of workers or the work pressure.
4.4.4. iii.i. Mode of payment
The methods of wage payments are of great significance to the workers, because
it has an important bearing on the size of their earnings. In brick industry, both time and
piece rate system prevailed. Wages (rate) are fixed directly by the Sarder and indirectly
129
by the owner on the basis of their work requirements. Under piece rate system, workers
are paid according to the work they have done. Out of 410 workers, 356 (86.6%)
workers are appointed on piece rate system and the 54(13.2%) are appointed by the
owner/head mistry/sarder on fixed rate in time basis. Patheras, Bakider and Rejja are
working on piece rate system, only mistry and office staffs are engaged on monthly
basis.
Among the male workers, 54(18.6%) workers work on monthly fixed rate
system and they are mainly Mistry and office staff. Another 236(81.4%) workers are
work on piece rate system. Again, all female workers (100%) are work on the piece rate
system.
In case of bonus, only the migrant labourers are benefitted. After completion of
the manufacturing process and at the time of leave the work site, the male workers are
given some bonus like Dhoti. Kurta, Shirt, Blanket, Mobile phone etc. Female workers
(migrant only) get Sari, Surider, blanket, utensil etc. But the local labour reported that
they have not got any type of bonus.
4.4.4. iii.ii Maintenance of account
In brick industry, all counting is done in thousand (000) which is very important
in such industry. The owner appoint a person (known as Ticket master) to supply token
on every trip of loading and unloading. Final account is done in the evening when the
work is over, the person noting it down in his register and the payment is made on
weekly basis on the weekend day. All the women workers are observed working on
contact basis under the method of piece- rate .The rate of wages differs from place to
place and the workers have no hand in the fixation of wages. But still uniformity is
maintained by the owners in Nagaon district.
In the absence of any organized pressure of either trade unions or any social
group, the legislation such as the Minimum Wages Act seems to have also lost its
significance in the case of brick kiln workers. From the survey, it is observed that the
workers cannot be expected to bargain with their owner on their own initiatives due to
their illiteracy and rural background and other inhibiting socioeconomic factors. Hence,
the owners have the sole authority to determine the wage rate. Besides it, the usual
deduction for debt servicing is Rs 40 to Rs 50 per thousand bricks (in case of Patheras).
Sometimes for workers with particularly large debts, the deduction is closer to Rs
130
100,but the gross family income is also much higher. At the end of each month, labour
is verbally informed of the size of outstanding debt.
4.4. 5. i. Indebtedness among workers
Indebtedness is very common among the labourers in the brick kiln industry.
The system of advance payment and the verbal commitment to work and to return the
advance have created many problems of debt bondage among labourers. An attempt has
been made to find out various aspects of loans and advance of the workers. It is to be
noted here that the nature of indebtedness is different from the usual indebtedness. Most
of the workers are given advances, called Dadan at their place through the sarder at one
time. The general practice seems to be that advance is given on personal guarantee and
without interest to the head of the family for entire members. Deductions in connection
with loans and advances are also made at the same time. On the day of weekly payment,
deduction is done in some per cent through the Sarder. Fresh loans are also offered
during the course of work and cycle continues till the workers are completely trapped. It
is very difficult to the families to get rid of the debt and they have to continue their
work for long period under same Sarder or kiln owner.
4.4 .5. ii .Sources and terms of indebtedness
Labourers accept loan or advance (dadan) to fulfil their different requirements
under some compulsion. In brick industry, loan is accepted by the labourers as a system
also. Traditionally, the kiln owners are bound to invest such money without interest due
to the expertise of the labourers and for regular supply of labourers.
Table: 4.26 Sources and terms of indebtedness
Sources of debt No of Written/ With Guarantee
respondent verbal interest/without (Land/Labour)
interest
Labour 302(96.8%) Verbal Without interest Labour.
sarder(Advance
payment)
Relatives 6 (1.9%) verbal With interest nil
Friends 4(1.3%) verbal With interest nil
Bank & other - _ _ _
institutions
Total 312(100)
(Figures in the parenthesis indicate % of the total)
131
 Table 4.26 shows about the indebtedness among the brick kiln workers .During
survey it is found that 302(96.8%) of the sample workers are indebted to directly to the
labour sarder and indirectly to the owner as they have recruited through “Dadan”. Since
the labourers are very poor and asset less, most of them relapse into bondage. They
accepted loan in a verbal contract without any written document. The kiln owners also
bound to invest such money without interest due to the expertise of the
labourers .Labour is the only ‘guarantee’ or collateral of such type of contract or
advance payment. Only 6(1.9%) respondents received loan from their relatives and
4(1.3%) took from friends without any guarantee but with interest. One of the most
significant observations is that Banks and other institution are yet out of their reach.
4.4. 5.iii.Reasons of loans
In brick kiln industry, advance payment (dadan) plays a very significant role in
both case of workers and owners of the kilns. Loans are the fundamental issues between
the employer and the labourers. So it is very important to know the reasons why the
loans are taken. Generally, the kiln workers are very poor. Their family size is large and
the dependency ratio is very high. The low earnings are not enough to meet the
requirements of large families. The families are caught in the vicious cycle of poverty.
The migrated labourers are bound to contract with employer due to their poor economic
conditions and as a prevailing traditional system of labour recruitment in Brick
industry.
It is observed that majority of workers, 240 (76.9%) accepted advances due to
their poverty. They hardly got any job to subsist their family in their native place.
Another 35 (11.2%) respondents accepted due to slackness of agricultural production,
and 17 (5.4%) used the money for the treatment for their illness. For 12 (3.8%) workers,
it is a major help to perform the social function like marriage of children and 10(9.3%)
respondents use the advance money to buy some property like utensils, ornaments and
mobile phone.(Figure 4.15)
The “Dadan” or advance payment is an old and widely practiced system in brick
kiln industries. Through the sarder, the owner lures the workers at the off season in their
native place. Majority of workers adopt advances (Dadan) as a system though they are
also compelled by their poor economic circumstances. The brick making is of seasonal
nature. It continues for nearly five to six months only. Generally the workers remain
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idle and this idleness compels them to take more loans from the owner. For this
advance payment system, all labouers are bonded to the owner and the repayment is
done only through the physical labour. During survey, an attempt has taken to assess the
psychological reaction about the dadan. But it is found that the workers do not feel
bonded and accept such advance payment voluntarily as a traditional system. Illiteracy,
poverty and unorganized nature are the basic causes for such incidence.
Figure: 4.15 Reasons for debt (advances)

4.4.6. Assets posses by the workers

The kiln workers are very poor people, though they have earned a significant
amount of income. In order to ascertain their economic conditions, an attempt is taken
what type of assets they have possessed. (Figure 4.16)
From the survey, it is observed that 50(12.2%) sample workers out of 410, have
wrist watch, The percentage of workers who have radio is 06(2.92%),12(2.92%) have
T.V. Again, 08(1.95%) have Fan, but this per cent is very low. The workers who have
bicycle is 129(31.46%), and 101(24.63%) workers use mobile phone with sim card.
Some of the respondents inform that they have purchased the phone and majority of
phone is supplied by the owners as Bonus. 36 (8.78%) of workers use mobile phone
only to listen music at the time of work (given by owner as bonus).The number of
workers, who have their own house to live is 244(59.51%),and 71(17.3%) workers
reported that they have possessed some less amount of own landed property. But out of
410 sample workers, 57(13.17%) reported that they do not have any above mentioned
assets. This group comprised by widow, unmarried and some young people.
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 Figure:4.16 Assets posses by the workers

4.4.7. Family Size of the workers

Most of the brick kiln workers have large families. In addition to their wife and
children, sometimes their old parents, unmarried sisters and brothers also reside with
them. Children, both sons and daughters generally leave their parents after marriage,
but in many cases married sons along with their wives and children are found staying
with their parents. But such incidence is not very common.
Out of 410 workers, 362 workers are reported as married and they have all total
1963 children or an average of 5.42 child .Out of 1963 children, some are reported to be
working and helping their parents in brick making, many of them are reported to be
married and most of them are residing separately with their spouses, and some of them
are reported to be not working, which included sick and invalid and school going
children.
Analyzing the data, it is found that the most of the workers are either illiterate or
educated at lower level. Their economic and social background is very pathetic. The
figure-4.17 shows that most of the workers 83(23%) have 7 no of children, and
followed by 72 (20%), which have 6 number of children and 69 (19%) have 5 children.
These classifications of workers indicate their low level of social status. Small family
norms and Government family planning various schemes are still far away from such
illiterate, poor workers.

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 Figure: 4.17 Number of Children

4.4.8. Living conditions of the brick kiln workers

Living condition is one of the basic indicators of social status in a society. Brick
industries are seasonal and operate only for 5-6 months in every year during the month
of August-September to March –April.
In every year, both migrant and local labours are employed by the Sarder
or owner without any written document on temporary basis. As the piece rate system is
followed, so the workers always try to give long time to brick production.
From the survey, it is found that many workers come from distance places
with their family and live in the work site for whole production season. Generally,
houses are provided by the kiln owner. So an attempt has done to know the workers
living conditions like - the housing conditions, sources of drinking water, availability of
electricity facility in quarter, sanitary facility and any other types of facilities, which are
required to live a minimum standard of life.
4.4.8.i. Types of accommodation
Analyze the collected data; it is found that the migrant workers are living at the
site of the kiln for the whole season. The local workers come from nearby areas and
they return to their native place by the free transport supplied by the owner. Table: 4.27
represent that out of 410 sample workers, 291 (71%) live at worksite with their family
(provided by the owner as free) whereas 119(29. %) are resided at their own house in
their villages.

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Table.4.27 Living conditions of workers
Sl Categories Frequency %
No
1 Accommodation Own 119 29
Provided by owner 291 71
2 House type Temporary small hut 254 62
small brick house(permanent) 156 38
3 Sanitation Pucca 17 4.1
Kuccha 379 92.4
No 14 3.4
4 Availability of Yes 84 20.5
electricity No 326 79.5
5 Source of drinking Tube well 354 86.3
water. Well 35 8.5
Other source. 21 5.12

From the Table: 4.27, it is found that the migrant workers are living at the site of
the kiln for the whole season. The local workers come from nearby areas and they
return to their native place by the free transport supplied by the owner. Out of 410
sample workers, 291 (71%) live at worksite with their family (provided by the owner as
free) whereas 119(29. %) are resided at their own house in their villages.
The kiln owner makes some temporary huts at the brick field. The living
condition reveals that they live in sub-human conditions without any facility of proper
ventilation, sanitation, cooking place, bathing, drinking water, electricity and so on.
Most of the family is provided a small hut of 3 ’ x 6’ size close to work site .It is
generally made up of mud or broken bricks and thatched roof without any proper
lighting, ventilation, drainage, lighting and drinking water. The roofs of the huts are at
such a height that it is very difficult to stand in these huts. The door is very small and
in very temporary type. Sometimes, these huts collapse and the eatable goods and other
household articles are lost. Common types of houses in brick kiln are made of Bamboo
stick walled house, Brick wall houses (roughly arranged bricks, with a thatched roof or
a plastic sheet), Tin walled house, Plastic walled house (plastic walls and plastic roof,
without any door or window).

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4.4.8. ii Sanitation facility
For healthy living condition, sanitation facility is very essential. But in the case
of brick kiln workers, it is very pitiable. In work site, all arrangements are temporary.
Besides it, the economic conditions of the labourers are very measurable, so they have
no capacity to make Pucca arrangement. In Table 4.27, it is observed that out of 410
workers, 17(4.1%) use Pucca, 397(92.4%) use Kutcha and 14(3.4%) do not have any
arrangement and they use some open common areas.
For the women workers, there is no any privacy for bathing and other needs.
4.4.8.iii. Availability of electricity
Use of electricity is not very common among the brick kiln workers. From Table
4.27, it is found that only 84 (20.5%) workers use electricity for household activities.
Most of them are local labours, who live at their own place, Mistry and office staff of
the kiln are in this group. Another group of workers 326(79.5%) do not use electricity,
as they live at workplace in a very temporary type of house provided by the owner.
4.4.8 .iv. Sources of drinking water
From the Table: 4.27, it is found that the source of drinking water is Tube well
in many cases of both migrant and local workers. Out of 410 labourers, 354 (86.3%)
workers get drinking water from tube well provided by the owner for brick processing.
The local workers also collect their water from private or Government supplied Tube
well.35 (8.5%) workers collect water from well and 21(5.12%) workers reported that
they get water from some other sources like ponds, nearby river etc
4.4.9 Basic facilities availed by the workers at work place
4.4.9.i Crèche home for Children
From the Table 4.28, it is found that the provision of Creche Home for the
children is not found at any Brick kiln. The migrant workers (who live at the work site)
are accompanied by wife and children. Generally the younger children also work for
their family and they have to look after their siblings. The local female workers faced
this problem very high. The children play in dirty and unhealthy environment.
4.4.9.ii Canteen Facility
The importance of Canteen facility for any industrial establishment is very high
as it provides many benefits from the point of view of health, efficiency and well being
of the workers .But during survey it is found that both workers and the employers have
no any idea about the canteen facility. In some of the brick fields in Kaliabor
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subdivision, some private small tea stalls provide some facility in the evening .It is
observed that the local workers prefer to bring their own food with them for their
midday meal. They sit in the shadow of the nearby trees as there is no provision of
canteen Table: 4.28 Basic facilities of workers

Basic facilities of workers at work place.

Crèche home Canteen School facility for Voting power at Trade Union
for children Facility children work place or
labour
organization

Yes No Yes No Yes No Yes No Yes No

00 410 00 410 179 231 187 221 00 410

(100%) (100%) (43.7%) (56.34%) (45.6%) (53.9%) (100%)

4.4.9.iii. School facility for children

Provision of educational facilities for the workers and their family play a
significant role for the overall development of the workers section. Most of the migrant
labourers come to the kiln with their family, and reside in the shelters provided by kiln
owner. During survey, it is observed that no school provision has provided to the
workers. There are many schools in all nearby areas of the brick fields situated in three
sub-divisions. But, the workers live in kiln in isolation from local people with their own
life style and they have lived hardly for 5 to 6 months in both brick fields and at their
native places. Due to the low income and temporary nature of living, the migrant
workers cannot afford even elementary education for the children.
Out of 410 workers, 231(56.34%) workers do not have any school for their
children, inspite of Government so many running policies in education sector. Only one
kiln owner of Kaliabor sub division reported that they have provided a school in their
campus for the labour child. Another 179(43.7%) workers reported that they have
availed the school facility for their children. This group comprises all local labourers
who live at nearby places. But the migrants workers (who migrant only for six months)
are unable to give school education to their children. Indeed, instead of school, the
workers prefer their children to work in brick fields as a unit to make an addition to
their family income. Poverty, in general, and non availability of schooling facilities at
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or near the brick kilns, in particular, is the major reason for low literacy rate amongst
the children of brick kiln workers.
4.4.9. iv Voting power at work place
Voting is the basic right of all citizens. In brick kiln industry; most of the labour is
migrant labour. They come from other states, districts or places. So, in general election,
187 (45.6%) can poll the vote, (they are local labour) but another 221(53.9%) do not
avail their voting right. It is found that the migrant kiln workers do not stay
continuously for longer period in their village or work site, so they are unable to cast
their vote in both places.

4.4 .9. v. Trade unions or labour organization

Trade union or labour organization is formed to promote and protect the labours
by collective action. They play a very significant role for their members in connection
with security of services, better wages and proper working conditions etc. Therefore,
during survey, an attempt is made to know the unionism among the workers of the brick
kilns. But from Table: 4.28, it is observed that in all manufacturing units, neither any
one is a member of any labour organization, nor any labour organization is formed
among workers for the development and protection of the community.
4.4.10. Workers leave and holidays
In brick industry, there is no provision for any holidays with pay for the
workers. “No work no pay” rule is strictly followed in brick industry. That is why; it is
found that workers are not allowed or interested to observe any holiday or festival
during production periods.
The question of maternity leave does not arise due to many reasons. Firstly, the
workers are always appointed as temporary basis without following any rule and
regulation. Secondly, all workers work in the industry as seasonal workers, hardly they
get works for 4-5 months.
Besides it, the poor, illiterate women workers are not aware about this provision. As per
Acts and Rules, every worker is entitled to a weekly day of rest. This is usually taken as
Sunday. But in brick industry, the local market day is the weekly holiday. The workers
are not paid for the day as they do not work .About, 350(85.4%) workers avail the

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weekly holidays, but 60(14.6%) workers do not have such holidays. Among these
group, Mistry, office staff and Watch men are included.
4.4.11. Occupational and living condition health hazards
Workers engaged in brick making, brick loading and unloading in kiln, coal
pulverizing, and fuel charging etc. are under various thermal and physiological stresses
due to extremely unhygienic conditions in the kilns. Dust concentration is usually very
high in the time of loading and unloading of bricks. Wind-blown dust also covers over
the entire area for long time. Such dust is injurious to health. It may cause irritation of
skin and eyes etc. Brick making involves manual handling of heavy weights of mud and
green bricks, long working hours with awkward posture, monotonous and repetitive
work and other risk factors which involve extensive use of hands, shoulders, back
muscles and joints. Tropical climate, poor diet, poor health and insanitary and
unhygienic living conditions to which they live compel the workers to suffer many
diseases.
Here an attempt has been made to know the workers health condition and
diseases which due to the work they have done or the living place condition. The Table
4.29, reveals that the most of the migrant workers103 (41.2%) and 08 local workers
suffer indigestions (Dysentery),as they are living at work place without basic amenities
of life such as pure drinking water, sanitation etc. 75(30%) migrant workers and
48(19.2%) local workers reported about knee pain (Patheras) and chest, back pain etc.
44(17.6%) workers also reported that they suffer chronic fever and cough .But in case
of local labour, it was zero.70 (28%) migrant workers and 32(12.8%) local workers
have been suffering from skin disease like scabies, or had cuts and bruise.20 (8%)
migrant workers and 12(2.3%) local workers have respiratory problems and Malaria
affected 11(4.4%) migrant workers and 03(1.2%) local labours.
Table: 4.29 Occupational Health hazards
Workers All Total

Name of diseases Migrant Local No of % N

workers

Pain 75(36.9%) 48(23.4%) 133 32.43 410

Dysentery 103(50.2%) 08(3.9%) 111 27.07 410

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Chronic fever and 44(17.6%) --- 44 10.73 410
cough

Skin diseases 70 (28%) 32(15.6%) 102 24.87 410

Respiratory 20(9.8%) 12(5.9%) 32 7.8 410
problems

Malaria 11(5.4%) 03(1.5%) 13 3.17 410

None of the above. 80(39.0%) 50(24.5%) 130 31.70 410
Source; personal interview with workers at worksite
(N=410)(Migrant=205,Local=205).
The manufacturing process of bricks requires strong and energetic workers. So it
is observed that young age group is much higher than other groups. Being young and
newly have joined workers, 80(32%) migrant workers and 52(20%) local workers
replies that they had no any above mentioned diseases.
It is observed that no precautionary measures are taken by the industry in order
to protect the workers from the ill-effects of particulate and gaseous pollutants. The
workers are generally provided Jaggery (GUR) to eat daily. It is believed that it will
absorb all the dust and gaseous pollutants which go into the human system. But, this is
partially true.

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