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Alternative employment opportunities for women beedi workers: A study in

Dakshina Kannada district of Karnataka

Article · October 2002

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J 0 URN AL OF
RURAL DEVELOPMENT
Vol. 21 October -December No.4

CONTENTS
1. Alternative Employment Opportunities for 449
Women Beedi Workers: A Study in Dakshina
Kannada District of Karnataka
-D. Rajasekhar and G. Sreedhar

2. Assessment and Identification of Rural Poor in India: 483

A Study Based on NSS Household Data
-B. Sambi Reddy

3. Empowering Women Through Self-Help Groups and 511

Micro-Credit: The Case ofN1RD Action ResearchProjects
-G. Narayana Reddy

~
\
4. Development in Distress: A Critique of Poverty 537
r Eradication Programmes in Kalahandi District of Orissa
-S.C. Kumar; Nilanjan Das andB.B. Malik

5. Poor Participation and Low Sustenance: The Problem 553

with the Rural Development Programmes in Nigeria
-0.0. lkelegbe and A.O. lkelegbe

Case Study

6. Impact of Agricultural Development on Female 579

Work Participation -A Case Study'\,fa Foothill
Village in Himachal Pradesh
-Swarnalata Arya and Nirmal Sarhadi
 BOOK REVIEWS

1. Perspectives of the Silent Majority: Air Pollution, 591

Livelihood and Food Security, by Amitava Mukherjee
-N. Madhuri

2. Land Reform and Peasant Livelihoods, 592

by Krishna B. Ghimire (ed.)
-K. Hanumantha Rao

3. Socio-economic Profile of Rural India, 596

Dr. V.K. Agnihotri, IAS (ed.)
-Shankar Chatterjee

4. Women and Food Security-Role ofPanchayats, 598

Edited by PradeepChaturvedi
-K. Jayalakshmi

? Institutionalising Common Pool Resources, (Ed.) 602

by Dinesh K. Marothia
-S. Venkatadri

6. The Gram Sabha and Gram Sevak in Rajasthan 604

by Rajini Goyal
-M Sarumathy

7. Methodological Issues in Village-based Decentralised 605

District Planning by Sankar Majundar
-Jacob George

8. lnstitutionalising Panchayat: Raj in India, .606

by V. Venkateshan
-S. K. Singh

9. Planning for Forest Resources and Bio-divprsity 609

Management Principles, Organisation and
Methodologies by Kailash Chandra Bebarta
-P.K. Das

r
 Journal of Rural DevelopmentVol. 21 (4), pp. 449 -481 (2002)
NIRD, Hyderabad,

ALTERNATIVE EMPLOYMENT OPPORTUNITIES FOR

WOMEN DEED! WORKERS: A STUDY IN DAKSHINA
KANNADA DISTRICT OF KARNATAKA

D. Rajasekharand G. Sreedhar*

ABSTRACT

Beedi manufacturing provides employment to a

significant proportion of the workforce. especially
women,in India. In the context of a perceived decline
in beedi manufacturing in several parts. the questions
on whether beedi manufacturing is actually declining
and 'what alternativesdo womenhave' becomecrucial?
Thesequestions are addressedin thi,s' article with the
help of data collectedfrom women beedi workers and
di,s'cus.\'ionswith different ,s'takeholdersin Dakshina
Kannada district in Karnataka. which accountsfor half
of beedi manufacturing in the State and J 7 per cent in
the country. Although the beedi industry does not seem
to be declining at the micro-level. the availability of
beedi work per worker has marginally declined. Such a
decline ha.\' not adverselyaffected incomf}s of nl0st of
I the beedi workers as they adopt Copil1gnlec/lanisnls
such a,s'finding supplell1entary employment and
strategie,s'to nlaxinlise it by taking \iJork from both
regi.s-teredand non-registered companies, The /lealth
* Project Director, Roles of Rural Local Organisations Project, Institute for Social
and Economic Change, Bangalore and Professor, Department of Rural

..
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,,;.,
,;
;
Development, S,K. University, Anantapur, respectively.
I 450Rajasekhar
andSreedhar
,
concerns associated with beedi work and exploitative
production relations underline the need to think of
alternatives. Considering the resources available,
potential economic activities in the district and the
situation of beedi workers, the paper identifie.\'
alternative employment activities and discussesthree
types (short, medium and long run) of strategies to
promote them. The wo~en beedi workers can access
these opportunities only when they are organised into
self-helpgroups and establish linkages with banks. line
departments.panchayati raj and civil societyinstitutions.
This requires a multi-pronged strategy wherein both
governmentand non-governmentinstitutionsare required
to playa vibrant and re.\ponsiverole.

* * *
lntrod uction

Beedi manufacturing is one of the traditional, agro-forest based

industries in India. It is highly labour intensive and, over the last three to
four decades, it has turned into home-based industry, employing women
on a predominant scale. The official estimates indicate that over 4.4 million
workers are engaged in beedi manufacturing, out of which about two-
thirds are women and one per cent children (GOI, 2000). But the trade
unions estimate that the figure would be close to 7 million and the
percentage of women and children employed would be much higher than
the official estimate. If those involved in the collection of tendu leaves,
production of beedi tobacco and sale of beedis were also included, the
number of workers engaged in this industry would be considerably high.
In terms of employment, it occupies an important place in the country
next only to agriculture, hand loom and construction sectors. Over 90 per
i cent of beedi manufacturing takes place in the unorganised sector through
sub-contracting system.

~
 Alternative EmploymentOpportunitiesfor WomenBeedi Workers451

Beedi workers are exposed to several kinds of health disorders'.

Even the sitting posture of workers while rolling beedis for long hours is
said to cause certain gynaecological disorders in women. Since most of
the beedi manufacturing takes place in the homes of beedi workers,
inhaling the tobacco smell is likely to affect the health of their family
members as well. Even though children are not supposed to be formally
employed in the beedi industry as per the existing legislation on child
labour, their involvement, p~rticularly that of girls, is commonly found in
many activities such as rolling, packing and labelling of beedis. Since a
majority of the beedi workers belong to the below poverty line (BPL)
category, the prevailing practice of piece-rate work through sub-contracting
system inadvertently encourages the use of child labour in beedi making.
Naturally, this would increase the health conccrns surrounding the beedi
industry.

At the global and national levels, awareness on the dangers of

smoking is growing and campaigns are underway to ban the advertisement
of tobacco products and smoking in public places. These are likely to
have an adverse effect on the consumption of tobacco products including
beedis.Besides, the beedi industry is reported to be facing stiff competition
from other tobacco products. The Union Budget for 1994-95 modified the
Central Excise duty for cigarettes, reducing the tariff for small size (mini)
cigarettes measuring less than 60 mm in length. As a consequence, many
manufacturers introduced mini cigarettes in the market, thereby attracting
beedi smokers. Further, the tobacco multi-nationals have also entered the
market offering stiff competition to the local industries including beedi
manufacturers. In addition, beedi industry is facing competition from Gutka
due to certain reasons2.

The beedi industry is also facing tough competition from within.

Becauseof the exemption of central excise duty and cess on self-employed
and unregistered beedi manufacturers producing less than 20 lakh beedis
per year and on which there is no insistence on payment of minimum
wages, bonus, provident fund and pension benefits, the beedi industry is
reported to be growing in the informal sector at the expense of the
~___~_I~
111 !
--

452 Rajasekhar and Sreedhar

registered companies. This has also led to a cut or under-declaration in

the production of beedis by the registered companies or branching out of
the same. Besides, there is competition from the black marketeers selling
unbranded and spurious beedis at a lower price. In addition, it is reported
that the beedi industry has a tendency to relocate itself, moving to states
where cheap labour is available and minimum wages are low or are not
rigorously implemented3.

But, there is no statistical evidence at the national level to indicate

that the beedi industry is declining4. There is also no evidence to the
decline in tobacco consumption5. But, the reports indicate that chewing
tobacco grew at a faster rate when compared to beedi tobacco on account
of changing consumer preferences, and this reflects the threat to the beedi
industry from Gutko and Panparag (Bhattacharya and Bhattacharya, 2000).
On the other hand, there seems to be some evidence at the micro-level
pointing to the decline of beedi Industry as indicated by the closure of
branches by some manufacturers, relocation and diversification plans of
some others6, and a decline in beedi production and employment (in terms
of days of beedi work per week) in certain beedi producing areas of
Madhya Pradesh, Gujarat, Andhra Pradesh and Kerala, but the trends are
not uniform in all places and there are variations in the extent of decline
and reasons thereof (Jhabwala et al., 2000).

Is there a need to think about alternative employment opportunities

to the women beedi workers? The health hazards associated with the
beedi industry appear to be the primary reason to think in this direction.
The fact that beedi industry is providing employment on a large scale to
women cannot be an argument to overlook the adverse impact on their
health, but it is certainly an important concern in any serious consideration
to move away from tobacco (Sudarshan a~d Mishra, 1999). Further, the
\. unorganised nature of beedi industry and exploitation of women workers
.\ by the contractors or their agents7 also underline the need to think in
i terms of alternatives. Another important concern is that in view of the
i shifting/relocation of the beedi industry, there tS no guarantee of
1 employment opportunities in this sector on a long-term basis. As such,
1
1
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 ..;cTP'" .

Alternative EmploymentOpportllnitiesfor WomenSeedi Workers453

there is a need to think of the alternatives to beedi work. But, finding

alternative employment opportunities to women engaged in beedi industry
is by no means a simple task because of the following reasons:

.I. Beedi work is relatively easy and can be done conveniently by

women at home. Finding an equally convenient alternative is
extremely difficult.

2. Beedi industry is a m'onolithic employer. It may not be possible

to employ all the displaced workers in one single industry after
diversification.

3. The educational and skill levels of women beedi workers are

very low and finding alternatives is difficult without improving
their skill levels.

4. The beedi industry is spread over vast geographical area

covering even the remotest villages and hence, it is difficult to
cover all of them at a time.

At the same time, it has to be recognised that the beedi industry is

not going to close overnight. As such, it is right time for an in-depth
examination of the problem in the light of the ground realities. In this
context, it becomes pertinent to address the following questions:

.Whether the beedi industry is declining at the micro-level, and if

so, to what extent and whether it has adversely affected the
livelihoods of the beedi workers? How are the beedi workers coping
with the situation arising out of such decline?

.Is there any scope for promoting alternative employment

opportunities based on the resource base of the beedi workers and
the resource endowment of the places where they live?

.What are the alternatives for the women beedi workers? and What
strategies need to be adopted to promote the alternatives for them? L

'_1
 ~-~

454 Rajasekhar and Sreedhar

The present paper attempts to examine these questions in the specific

context of Dakshina Kannada district in Karnataka. The district is
specifically chosen since it occupies an important place in beedi industry,
accounting for nearly half of the beedi manufacturing in Karnataka and
17 per cent in the country as a whole.

Methodology

In view of the nature of the study, it was thought important to take

into consideration the views of different agencies/persons directly or
indirectly associated with the beedi industry such as its representatives,
trade union leaders and the functionaries of relevant state government
departments, Panchayati Raj Institutions (PRls) and the Non-Government
Organisations (NGOs) as well as the bankers. Hence, the methodology
adopted in conducting the study included detailed discussions witl1 all these
actors. As the beedi workers are unorganised and spread over the entire
district and their limited coverage by the trade unions, it was decided to
approach them through other agencies working for them. It was learnt
that some NGOs and the local cooperative bank had forn1ed self-help
groups (SHGs) for the women beedi workers. Therefore, it was decided
to select five such NGOs and one of the branches of the local cooperative
bank on random sampling basis for the purpose of this study. At the next
stage, six SHGs, one each promoted by these agencies and representing
different regions in the district (rural, urban, interior and coastal) were
randomly selected. The field study involved focus group discussions with
1 these self-help groups, followed by individual household interviews with
i those selected on the basis of random sampling method. There were about
20 members in each selected SHG and the focus group discussions enabled
us to interact with about 120 women beedi workers and capture the
common problems encountered by them. After detailed discussions witl1
these groups, 5-6 women beedi workers from each SHG were randomly
chosen for an in-depth study. The sample was thus confined to 32 women
heedi worker households.
 .c! ,

~
Alternative EmploymentOpportunities/or WomenBeedi Workers455

After assessing the ground situation relating to the beedi industry

and the income opportunities available to the women beedi workers,
discussions were held with the different actors in order to obtain
information on the ongoing programmes and the possibility of linking the
women beedi workers with these programmes. At the same time, a small
opinion / market survey was conducted to examine the potential for
promoting certain income generating activities (IGAs) which emerged from
the discussions with women work~rs and those identified by the different
actors involved. The field study was conducted during 2001.

Beedi Industry in Dakshina Kannada District

The present Oakshina Kannada, a coastal district in Karnataka, was

formed in 1997. The district is small in terms of geographical area, but
densely populated and predominantly rural in nature. With an average
annual rainfall of 4,030 mm, the district has never experienced drought
(Syndicate Bank, 2000). It is the second most industrialised district in
the State. Beedi industry has strong roots in this district with 36 beedi
companies and over 2,500 beedi contractors. The importance of beedi
rolling is reflected in the fact that about 100 types of beedis manufactured
under 12 major brands provide employment to about 6 lakh persons, mostly
women and, about 270 million beedi sticks are manufactured every day
in the district.

Beedi industry is reported to be undergoing a transformation in the

district during tile last three decades or so. Beedi industry representatives
are of the opinion that the production in the informal sector has picked
up at the cost of the registered companies. But, there is no statistical
evidence at the district level to indicate the extent to which the production
has shifted from the organised to the unorganised sector. However, there
is some evidence available regarding the diversification strategies and
relocation plans of some beedi manufacturers in the organised sector. The
trade union representatives are of the view that the beedi industry has
been facing competition from the manufacturers of mini cigarettes and
unbrandedbeedis and there has also been a decline in the availability of
456 Rajasekharand Sreedhar

beedi work. Some of the officials also note that because of decline in
beedi work availability, the availability of labourers for agricultural work
has gone up, and that the agricultural wages have come down. One of
the bank employees says that the maidservants are now easily available
than was the case earlier. The focus group discussions with women beedi
workers, however, reveal that the availability of agricultural wage work
has not, in fact, declined, and that the agricultural wages have remained
stagnant because of the decline in the prices of agricultural produces;

On the other hand, a few officials such as Vice-President of the zilla

panchayat did not believe that the beedi work availability had declined.
What do the ground realities indicate? The field visits to rural (Vlaibetta,
Kalliga and Tokur), semi-urban (Panemangalore), coastal (Vllal) and interior
(Puthige) places in the district with different geographical and economic
features and located at a distance of 15 to 40 Km from the district
headquarters reveal that people continued to rely on beedi work for their
livelihood. Out of 199 members in the sample households, 62 persons
comprising 58 females and four males were engaged in beedi work. On an
average, two members per household were involved in beedi activity.

The interactions with the selected SHGs indicate that there were only
two or three registered beedi companies operating through their branches
in the villages a decade earlier. But, now more than ten beedi manufacturers,
most of them in the unorganised sector, are operating in the villages. Even
the number of branches and the agents/contractors in each village has
increased over a period of time. In one of the villages, the women traced
the following developments in the last 10 years, which, they claimed did
not give much support to the view that the beedi industry was declining.

.Branches in the villages have increased from one to three.

.Number of beedi workers have incrcased by about three times.
.Children's involvement in beedi rolling has increased.
.The number of companies in the unorganised sector has
increased.
.The number of contractors has also increased.
 Alternative EmploymentOpportunitie~'for WomenSeedi Workers457

One woman said: "We have enough beedi work to do, we sit for
long hours to roll beedi and we are affected by back pain".

What does the primary data show? It was stated by the respondents
that beedi work will slow down during the rainy season due to shortage
of raw material. Besides, there seems to be some decline in the per
capita availability of work. About 60 per cent of the women workers
stated that they had experienced .,adecline in beedi work availability in
the last couple of years, and for most of them the extent of decline was
of the order of 200-300 beedis per day. On the other hand, 40 per cent
of the workers did not think that there was any decline.

Beedi work has a crucial role in the household income. The

proportion of beedi income to total is inversely related to the size class
of income. The share of beedi income to total is 31.5 per cent in respect
of all the sample households, while it is as much as 44.5 per cent in the
case of those living below the poverty line, i.e., Rs.22,000 in the case of
Swarnajayanthi Gram Swarojgar Yojana (SGSY)9 -one of the major
rural development programmes. According to this criterion, about 38 per
cent of the sample households fell under the BPL category. Beedi work
seemsto be critical for the survival of these t'oouseholds.

Whether the decline in the availability of beedi work had any adverse
impact on incomes of workers? The answer to this question was 'no'
from nearly 80 per cent of the workers. Only one-fifth of the workers
stated that the decline in beedi activity adversely affected their household
income. This incongruous phenomenon can be explained in terms of the
following: Firstly, the decline is not uniform across all the villages. The
women workers reported that the registered companies supplied raw
material required for only 3-4 days as against 6-7 days in the past. In
fact, it was reported in one of the villages that the per capita rolling had
come down from 1,000 to 600 beedis per day. The combination of
registeredand unregistered companies provided work sufficient for the week
in places like Panemangalore and Tokur. Secondly, only about 37.5 per
cent of the respondents stated that the quality of raw material supplied
I
Alternative EmploymentOpportunitiesfor WomenSeedi Workers457

One woman said: "We have enough beedi work to do, we sit for
long hours to roll beedi and we are affected by back pain".

What does the primary data show? It was stated by the respondents
that beedi work will slow down during the rainy season due to shortage
of raw material. Besides, there seems to be some decline in the per
capita availability of work. About 60 per cent of the women workers
stated that they had experienceQ a decline in beedi work availability in
the last couple of years, and for most of them the extent of decline was
of the order of 200-300 beedis per day. On the other hand, 40 per cent
of the workers did not think that there was any decline.

Beedi work has a crucial role in the household income. The

proportion of beedi income to total is inversely related to the size class
of income. The share of beedi income to total is 31.5 per cent in respect
of all the sample households, while it is as much as 44.5 per cent in the
case of those living below the poverty line, i.e., Rs.22,000 in the case of
Swamajayanthi Gram Swarojgar Yojana (SGSY)9 -one of the major
rural development programmes. According to this criterion, about 38 per
cent of the sample households fell under the BPL category. Beedi work
seemsto be critical for the survival of these "-ouseholds.

Whether the decline in the availability of beedi work had any adverse
.). impact on incomes of workers? The answer to this question was 'no'
il from nearly 80 per cent of the workers. Only one-fifth of the workers
;;7,' stated that the decline in beedi activity adversely affected their household
i, income. This incongruous phenomenon can be explained in terms of the
following: Firstly, the decline is not uniform across all the villages. The
women workers reported that the registered companies supplied raw
material required for only 3-4 days as against 6-7 days in the past. In
fact, it was reported in one of the villages that the per capita rolling had
come down from 1,000 to 600 beedis per day. The combination of
registeredand unregistered companies provided work sufficient for the week
in places like Panemangalore and Tokur. Secondly, only about 37.5 per
cent of the respondents stated that the quality of raw material supplied
1118!: , 1.1 ~I~II "~ "'I

-=.c- ~ J'

458 Rajasekhar and Sreedhar

was substandard. Thirdly, only about 28 per cent of the respondents stated
that they suffered loss on account of rejection and the extent of loss was
Rs. 25 to Rs. 100 per month.

If the beedi work availability is declining, how are the workers

coping with it? The following seems to be the coping mechanisms: First,
in each household, there are women beedi workers associated with different
companies; in some cases, the same person works for more than one
company, registered or unregistered, whereas in some other cases different
persons in the same household work for different companies. It was also
noted that some women in the sample villages adopted a deliberate strategy
to go unorganised in order to maximise the benefits from beedi work'o.
Second, if there is an acute shortage in raw material, people in Kalliga
village see wage employment as the coping mechanism. In fact, taking
up other activities seems to be already emerging as a coping mechanism.
I About 28 per cent of the respondents stated that they were involved in
!
11 other economic activities such as occasionally hiring out as agricultural
labourers, undertaking non-agricultural wage work and tailoring. These
j seem to be effective and timely mechanisms because beedi rolling is
considerably affected during the rainy season due to dampness of beedi
leaves. At the same time, the demand for agricultural labourers would
,\ reach a peak during this season with daily wage rates soaring up beyond
Rs. 65 per day for women, and thus attracting women workers into
agricultural wage employment.

It appears that beedi industry has not declined as widely perceived,

even though there has been some decline in the per capita availability.
Obviously, the growth in the beedi sector is not matching with the growth
in the work force. Further, the decline in the per capita availability of
beedi work has not adversely affected the livelihoods in the case of a
vast majority of the beedi workers due to deliberate strategies and coping
mechanisms adopted. Nevertheless, there is a need to think of alternatives
to~beedi work because of other reasons mentioned earlier. However, this
calls for a closer look at the resource endowment of the district, in general,
and the resource base of the beedi workers, in particular.
 Alternative Em,'ioymentOpportunitiesfor WomenSeedi Workers459

Resource Endowment of the District and the Beedi Workers

The land available for cultivation is very much limited in Dakshina

Kannada district, and the average size of landholding is lesser than the
State average. With tiny landholdings and unable to derive sustenance,
the households depend on animal husbandry (dairying, poultry, etc.),
fisheries, industries and non-agricultural activities. Therefore, the
occupational structure is much diversified; of the total main workers, about
34 per cent is dependent on agriculture and other primary sector activities,
while 40 per cent is engaged in the industry sector and the rest in trade
and service sector. The Human Development Report indicates that the
district ranks first in the State in many aspects of human development,
viz.. life expectancy at birth, health index, people below the poverty line,
etc. It ranks fourth in the State in respect of per capita income and was
declared to have achieved total literacy in 1992, with higher female work
participation rates compared to the state averages. Banking network is well
developed,and the credit flow to non-farm and farm activities is significant.
NGOs and banks in the district had formed 4,305 SHGs, which are at
various stages in so far as linkages with bank branches are concerned
(NABARD, 2000).

The visits to six places in the district revealed that in addition to

beediwork, people primarily depended on plantation work, cultivation of
vegetablesand agricultural wage work in the interior villages, on fishing,
pickle making, coir making and wage employment in port in the coastal
areasand on wage employment in the urban informal sector in places nearer
to the urban areas. In the sample households, the overall literacy rate was
84.4 per cent, being slightly higher in respect of males when compared to
females.But, their educational levels were still low. The percentage of skilled
workers has substantially higher among the females when compared with
males,the average being 43.2 per cent. But, the predominance of skills
amongthe females is essentially due to beedi rolling. Out of 65.4 per cent
skilled personsamong females, 59.4 per cent knew only beedi rolling. Thus,
the skill levels of the members of sample households were quite low, if we
did not take beedi rolling into consideration.
 460 Rajasekhar and Sreedhar

Thus, the resource endowment of the district appears to be favourable

for introducing alternative policy initiatives to meet the situation in the
event of the decline of the beedi industry. As such, the International Labour
Organisation (ILO) has already initiated efforts to implement a pilot project
in this district to find alternative employment opportunities for women
beedi workers in collaboration with some NGOs, the National Bank for
Agriculture and Rural Development (NABARD) and the government
i agencies. But, the !,oor resource base of the beedi workers appears to be
the major cause of concern in any such initiatives. Nonetheless, it is
important to examine what the relevant actors and the beedi workers
themselves are thinking in this regard.

What could be the Alternatives to the Beedi Work?

Finding an alternative to beedi rolling is a challenging task primarily

because it is perceived as a very easy, convenient and home based activity.
Further, beedi work accounts for a massive number of women workers
j whose education levels are not spectacularly high and skills are essentially
I
! confined to beedi rolling. Some people were very much reluctant to the
very idea of alternative to beedi work. The trade union leaders looked
grim about the idea. While a senior representative of the All India Trade
Union Congress viewed that it is too premature to think of alternatives,
the District Secretary of the CITU opined that large-scale promotion of
cottage industries alone could be an alternative to beedi work. The trade
unions have been contemplating to pursue a two-fold strategy to protect
the interests of beedi workers: first, to protect the beedi industry from the
onslaught of multi-national companies manufacturing the mini cigarettes;
and second, to fight for the strict implementation of existing legislation
for the beedi workers. They argued that both registered and unregistered
companies should pay minimum wages and extend all benefits to the beedi
workers. For them, this constitutes a viable strategy for beedi workers
rather than finding the alternatives. If alternatives are to be found, Beedi
Workers' Welfare Fund should be utilised for the purpose. The affected
beedi workers could also form their own co-operative to manufacture beedis
as has been done in Ketala.

.IIIIII.~,
?,\ . -
 Alternative EmploymentOpportunitiesfor WomenBeedi Workers461

At the household level, beedi rolling provides significant employment

to women workers, and pushes the work participation rates to very high
level. For those households where the dependency ratio is high, where
women have been rolling beedis for over 15 years and where the beedi
income forms a significant proportion of the total income, the alternatives
seemto be bleak. This is especially so in the case of older women who
now think that they cannot switch over to any other occupation as they
have become risk averse, and old and sickly due to beedi rolling. Even
the posing of the question on alternatives to beedi work made some of
the women feel very insecure. When asked whether they had alternatives
to beedi rolling, a women from Tokur village sharply reacted: 'Why are
you asking such questions? We are shocked to hear such a possibility.
We do not have any idea on how to cope with, if such a thing happens'.

Nevertheless, the opinions of the respondents were obtained with

regard to the possible potential opportunities. According to 25 per cent of
the respondents,the most important economic activity that could be taken
up was agricultural labour (Table 1). The other alternatives suggested by
women were tailoring, poultry, dairying, file making, cashewnut processing
and hiring themselves as maidservants. About 22 per cent (mostly older
women who have become sick after rolling beedis for over 15 years) could
not think of any alternatives to beedi rolling.

Thus, the alternatives suggested by women beedi workers themselves

are largely agriculture-based and fall under the category of traditional
activities. This is only to be understood because the overwhelming opinion
is that beedi activity is not declining and that there is no alternative of
equal nature and magnitude in sight. Secondly, those who perceive that
beedi activity is declining and face intermittent problems relating to
availability of beedi work have, as noted earlier, developed coping
mechanismsthat are essentially the same as alternatives expressed by them
(Table 1). Thirdly, the women beedi workers are only recently organised
and hence, in the absence of training on alternatives, cannot think of non-
traditional activities.
~ --

462 Rajasekhar and Sreedhar

If the women beedi workers are to take up these alternatives, what

kind of support do they require? A large proportion of women beedi
workers indicated their requirement for both financial and technical support
to undertake alternative economic activities (Table 2). Banks, line
departments and NODs can provide such support. For sustainability reasons,
it is important that women beedi workers are linked to banks and line
departments with facilitating role played by NODs. Hence, it is necessary
to examine the views of bankers and officials on what alternatives exist
and what support they can provide.

Type of Activity

Table 1: Economic activities that could be taken up

Frequency Percentage
Dairying 3 9.4
Tailoring 5 15.6
Poultry 4 12.5
Agricultural labour 8 25.0
Maidservant 1 3.1
File-making 2 6.3
Cashewnut-processing 2 6.3
No idea 7 21.9

Total 32 100.0

The bankers and officials also view that dairying, poultry farming,
tailoring! embroidery/ readymade garments are important alternatives that
women beedi workers can undertake since these have local demand.
Further, the line departments and banks have designed programmes to
provide both technical and financial support for these activities.

In this context, a question that arises is whether to explore the

feasibility of traditional activities preferred by the women beedi workers
or to identify non-traditional activities, which have potential and demand
in the local market. This question is addressed by exploring the feasibility
of IOAs preferred by women beedi workers and to crosscheck the ~me
!,

Alternative
Employment
Opportunities
for Women
BeediWorkers
463

~ Type of support
Table 2: Support required to undertake other economic activities

Frequency Percentage
Financial support 9 28.1
Technical support 8 25.0
No need of support 6 18.8
Both financial and technical 2 6.3
Not applicable 7 21.9

Total 32 100.0

with the district level development actors. We, therefore, examined the
feasibility of the activities that have been considered as potential
alternatives both by the beedi workers and the officials of the line
departments and banks in the ensuing paragraphs because short-term
sustainabilityof alternatives was very much dependent on a match between
the perceptions and needs of women beedi workers, on the one hand, and
developmentactors at the district level, on the other. In addition, we have
also examined the feasibility of a few other activities suggested by the
functionaries of the line departments and the NGOs.

Dairying

Dairying is undertaken as supplementary activity by most of the

householdsin the district. The Karnataka Milk Federation (KMF) operates
a dairy plant in Mangalore, which produces and processes about 3.5 lakh
litres per day from 166 milk producers' cooperative societies. The district
fodder development centre was established at Koila to promote fodder
production through demonstration methods.

It has been found that at the time of the survey about one-third of
the sample households were pursuing dairying, though on a limited scale,
and that 10 per cent of them preferred this as an alternative to beedi
rolling. This activity has internal and external favourable factors (Chart
I). This activity is home-based and female-oriented. Further, it does not
1\

464 Rajasekhar and Sreedhar !

require much skill and most of the women are familiar with this activity
even though they might not have practised it. The space required for
dairying, i.e., for constructing cattle shed, is available in the case of many
households in rural areas. Since many of them had their own houses,
they can take up this activity in their house premises.

The concerned district level officials noted that the market existed
for milk. There was. a short supply of milk and milk products in the
district, both in urban and rural areas justifying the need for promoting
dairying. The Karnataka Milk Federation officials noted that there was
considerable demand for milk and milk products, and the production within
the district was not able to meet the demand. An officer from the Women
and Child Development Office noted that in every district level meeting
reyiewing the progress of the development works, the issue of short supply
of milk came up. The Lead District Manager (LDM) stated that banks
would be willing to finance this activity. He also pointed out that if the
households in a village could supply a minimum of 100 litres of milk per
day, then the KMF would be willing to establish a milk route to that
village, providing assured market. Further, there was scope for promoting
this activity for the BPL households under SGSY.

However, this activity may face constraints such as limited

availability of fodder and managerial inadequacies in running the activity.
In this context, the Assistant General Manager of NABARD felt that the
dairy farming needed to be promoted as a group enterprise. This would
address issues such as obtaining milk routes, veterinary services, collective
procurement of feed, etc. The Potential Link Credit Plan has identified
.the non-availability of green and dry fodder as the major constraint for
dairying. The extensive tree cover and vegetation and the availability of
large extent of uncultivated land offer good scope for the development of
common pastures and green fodder, which, in turn, would facilitate the
growth of dairy enterprise. This calls for proper management of common
.lands at the village level. Thus, dairying can be promoted in the short-run
to build confidence among women beedi workers and facilitate 'the
transformation from the status of 'employed' to 'self-employed'.
 Alternative EmploymentOpportunitiesfor WomenReedi Workers465

Chart 1: The feasibility of dairying activity by women beedi workers

Particulars The evidence

Internal It is a female-oriented, home-based and familiar activity.

favourable Most of the sample households have space for taking up factors dairying.

External Considerable demand exists due to short-supply of milk

favourable and milk products in the district.
factors Willingness of banks to finance dairying.
Willingness of officials t? provide milk routes and technical support.
Large extent of uncultivated land in the district otTers scope for fodder
cultivation.

Constraints Limited land base of the sample households.

Managerial inadequacies for taking up dairying on a viable basis.
Shortage of green and dry fodder in the district.
A minimum number of milk producers and a prescribed quantum of
milk roduction are required to establish milk collection centre.

Support Organising the members interested in taking up dairying.

needed Enabling access to credit through micro finance programmes.
Capacity building to demand veterinary care system from the
government.
Development of local animal health workers.
Capacity building to demand milk routes and linkages with Karnataka
Milk Federation.
Facilitating adequate supply of fodder and cattle feed.
Facilitating insurance of milch animals.

Possible Linkages with Stree-sakthi through DWCW and SGSY

linkages through Panchayati Raj Institutions and I,anks.
Linkages with banks either directly or through NABARD
under SHG-bank linkage programme.
Linkages with KMF and government for establishing
milk routes and for providing veterinary support.
Linkages with Gram panchayats (GPs) for converting
Common Property Resources into fodder plots.
Linkages with GPs to obtain infrastructure facilities and other
development programmes. .
Facilitating linkages with insurance companies for the
insurance of milch animals.

Overall Existence of local demand, preference by the local communities and

feasibility possible support from the development agencies, notwithstanding a few
constraints, point to the feasibility of dairying at least in the short-run.
 ,~
-=- ~-
,
i

466 Rajasekhar and Sreedhar

;

,.
,
(,;
.., ~
Poultry Farming
:1,
, The South Canara District Poultry Producers' Marketing Society,
Mangalore, is engaged in the development of poultry farming in the district.
Nearly 4.06 lakh eggs are produced daily in the district. This activity is
undertaken by many households in the district as a supplementary one to
ensure some bit of food security in the household. About two-thirds of
the sample household~ had taken up poultry farming, though not on a
I
scale to be a viable subsidiary activity. But, the district level picture
,1 indicates that since there is good demand for poultry products, it can be
promoted as a viable subsidiary activity provided that the available training,
technical support and marketing facilities are utilised and interventions
are designed up to the desired levels. Chart 2 depicts the feasibility analysis
of poultry activity, which shows that it is a feasible economic activity in
the short-run.

Tailoring, Embroidery and Readymade Garments

Some women, particularly the younger ones, possess the tailoring

skills in the sample villages. They expressed interest in fine-tuning their
skills and start some business in a small way to meet the local needs.
Moreover, tailoring is one activity that is being encouraged by the
Department of Women and Child Welfare (DWCW) under Mane Belaku
alld Udyogini schemes. The officials of the department observed that
they would organise training programmes to NGOs to enable the target
group women to undertake readymade garments. The activity of
manufacturing of garments can be an important activity as there are a
number of colleges in Mangalore and other towns, where a large number
of young boys and girls study. Since a number of students come from
affluent households from north India, they have good purchasing power.
Their tastes and preferences change constantly; there will be good demand
for garments.

The Chief Executive Officer of Zilla Panchayat (ZP) had a different

opinion. He observed that it was a costly business and that labour was

:1
"" ! .'

r.,
!iLiI
Alternative
Employment
Opportunitiesfor
Women
BeediWorkers
467
'I
Chart 2: The feasibility of poultry activity by women beedi workers

Particulars The evidence

Internal About two-thirds of the respondents have undertaken poultry,

fa'"ourable thus implying that the experience exists.
factors 80 per cent of the households have own house. This enables
them to undertake poultry as home-based activity.

External A predominantly non-v~getarian population and growing

favourable urbanisation in the district offers considerable demand for
factors poultry products.
At present, considerable gap between demand and supply exists.

External Considerable infrastructure such as District Regional Poultry

favourable Farm. three poultry training centres, six hatchery units, five
factors poultry extension centres exist in the district.
The Department of Animal Husbandry provides high quality
chicks to farmers and has provision to provide training facilities.

Constraints Managerial inadequacies to undertake poultry on a viable scale.

Unrestricted arrivals from neighbouring districts constrain the
marketing possibilities for local farnlers.
The existing training facilities are reported to be inadequate.

SUppOl1 Organisation of interested producers and capacity building.

needed Identification of high productive income yielding birds.
Financial support to start home-based poultry units.
Capacity building to demand veterinary care system from the govern-
ment or training women on vaccination and disease management.

Possible Linkages with District Poultry Farmers' Cooperative for removing

linkages marketing impediments.
Linkages with Zilla Panchayat. for setting up retailed outlets.
Linkages with Animal Husbandry department for technical support.
Linkages with the universities, hatcheries and promotional agencies
for quality and high yielding birds.
Linkages with Stree-sakthi through DWCW, SGSY through PRIs
and banks for financial support.

Overall The poultry activity will be feasible if this is promoted among

feasibility a smaller number of women beedi workers and effective linkages
are facilitated through need-based capacity building inputs.

i
 \

I:
111 i

468 Rajasekhar and Sreedhar

! costly in the district. Similarly, the LDM noted that 25 units of readymade
garments were financed @ Rs. 2.5 lakhs per unit during the last one and
half years and all of them were finding it difficult to market their
products. We visited some readymade garments showrooms in Mangalore
city to assessthe market potential for this activity. One garments showroom
owner said that he was purchasing from Mumbai because the readymade
garments manufactured in Mumbai were: of good quality, had good finish,
available in latest fashions and styles in keeping with the changing times
and available at a competitive price. In another readymade garments shop,
the shop owner said two of his friends started readymade garment units
and both of them had to close their units becauseof: I) heavy competition,
2) small-scale production, and 3) high cost of labour. This shop owner
was also buying garments form Mumbai with a profit margin of 30-40
per cent. He was of the view that people of Mangalore wanted to buy
branded and well-known goods even if the prices were more.

Thus, the situation seems to be unfavourable for promoting

readymade garments on a large scale. Nevertheless, the feasibility analysis
of this activity (Chart 3) indicates that initially it can be promoted on
smaller scale warranted by the local markets in villages and semi-urban
areas. Readymade garments, particularly school uniforms, can be
encouraged at some places provided the market linkage is established with
the tecognised schools.

Promotion of Lower end Information Technology (IT) Activities

Combined with Provision of Telephone Services
,: The activities such as setting-up of STD booths and Cyber cafes
could be promoted in the long run in certain semi-urban and urban centres
in the district. These activities have some potential for development among
the younger and risk taking women beedi workers with relatively better
education. Chart 4 shows that in the light of the favourable external factors,
especially the choice of the district for computer education programme by
the Government of India, lower level IT activities are feasible in the
medium to long run. This would become feasible only when the
 '~P""

AlternativeEmploymentOpportunitiesfor WomenBeedi Workers469

Chart 3 : The feasibility of tailoring! embroidery!readymade

garments activity by women beedi workers

Particulars The evidence

Internal Possession of skills among younger women.

favourable Can be undertaken as home based activity.
factors

External A large number of college-going youth requiring

favourable fashionable clothing and their fast changing tastes
factors provide local demand for garments.
Scope to stitch uniforms for school going children.

Constraints Competition from registered and large producers.

Cheaper products arriving from Mumbai and other large
metropolis.
Only large companies can satisfy fast changing tastes of
youth.
Support Training to upgrade the skills.
needed Finance and marketing.
Possible Linkages with Government and other recognised schools
linkages for supply of uniforms.
Linkages with private companies for supply of bags and
other items.
Linkages with local garment shops.
Overall This activity seems feasible only under the conditions of
feasibility effective marketing linkages and willingness of the
entrepreneurs to keep pace with the changing tastes of
urban youth.

I
 .

470 Rajasekhar and Sreedhar

intervention strategies aim at building the capacity of educated youth

(especially girls) in the short-run.

Preparation of Paper! Cloth Bags as a Replacement for Recycled

Platsic Covers/Bags

The preparation of paper/cloth bags/covers is being encouraged by

some organisations in the context of the 'plastic ando/ana movement'
(agitation against use of plastics) in Mangalore city. The main aim of this
movement is to prevent the use of recycled plastic covers and discourage
the use of new plastic covers of less than 20-micron thickness and any
other plastic products made out of recycled plastics. Recycled plastic covers
are not eco-friendly and they are harmful in the long run. It is generally
assumed that this movement would create demand for paper covers and (
cloth bags, and hence, the manufacture of tIlese products might have some
,,
potential. We conducted a market survey in Mangalore by visiting five ~
categories of busineSS--e.$tablishments. The data suggest the following: s
FIrst, the business establishments claimed the non-use of recycled plastic s
covers and that the customers preferred plastic bags, as they were both tl
cheap and convenient to carry, even during monsoons. When asked whether v
there was any decline in their turnover in view of the movement, the ~
owner of a wholesale plastic covers distribution shop replied in the tl
negative. He said cost was the deciding factor. Another person running a ti.
supermarket and promoting brown colour paper bags with rope handle h.
and cloth bags at cost price said that the response was not encouraging
because the cost of plastic bags was cheaper by 50 per cent when PI
compared to paper and cloth bags. From utility point of view also, plastic
bags could be reused for longer time than paper bags. The remedy to this
problem lay in the general public and customers to come forward to change prl
their habit in favour of eco-friendly products. Thus, the prospects for an
encouraging this activity are currently dim. But, there might be some be'
market potential if the producers are linked to big chain of manufacturers CO
(such as Bata, Shoppers Shoppe, etc) and NGOs operating in cities like the
Bangalore. (S~

~
 AlternativeEmploymentOpportunitiesfor WomenReediWorkers471

Manufacture of Note Books, Files and Envelopes from Waste Paper

Recycling

This activity seems to have some scope to be encouraged as a home-

basedcottage industry, provided market linkage is created and sustained.
People in some sample villages expressed their willingness to undertake
this activity if they were given adequate training and marketing support.
SomeNGOs were also promoting .this activity, but they had to ensure a
marketing tie-up with the local banks, schools, government offices and
private business establishments so as to succeed in this venture.

Growing and Selling of Vegetables

The growth of vegetables seems to be another important activity that

can be encouragedin the villages located nearby the towns and cities. But,
againthe important constraint is the short supply of lanQ in the district, in
generaland that many of the beedi workers do not possess any land. But in
someplaceswhere housing schemes are taken up by the government, some
spaceis available for kitchen gardening. Such households can be encouraged
to undertakethis activity. It was found that some households in the sample
villageshave taken up the cultivation of vegetables by leasing-in land. They
weregrowing and selling vegetables with the help of their husbands. Since
tile pricesof vegetables are relatively stable and steadily rise from time to
time, this could be encouraged as an alternative to those households who'
haveaptitude and a little bit of experience.

Preparation of Food Products

Many women in the sample households visualised that the

! preparationof food products like sambhar powder, pickles, papad, bakery
and sugar products, fish curing and locally consumed eatables and
beveragescan be undertaken by them. This was essentially because they
could learn these activities with little training, but they were not sure of
the marketfor these products. The Deputy Director, Small Scale Industries
(SSI)unit, District Industries Centre opined that there was the District
,
!
 -

i
472 Rajasekhar and Sreedhar

Supply and Marketing Society which could help the entrepreneurs in the
procurement of raw material and sale of products, including food items.

With regard to the supply of nutritious food to the Anganwadi

centres, the officials of the Department of Women and Child Welfare
observed that the SHGs might not be able to undertake this task for the
following reasons:

1. A centralised production unit is to be set up for which

considerable capital to acquire machinery is needed, and
transportation is essential to reach the food to different centres
in the district. They wondered from where SHG women would
get such capital.

2. The decentralised production units do not work if the production

centres consist of Muslim and SC women. The rural population
would not allow the children to have the food as the cleanliness
and hygiene is important for the parents.

3. The government fixes rates at which the food is to be supplied,

and upward revision of these rates is often difficult. With
frequent increase in prices of raw materials, the individual
producers find it difficult to manage. As of now, a well-
established manufacturing unit supplies the food, and their
monthly turnover is around Rs.15-20 lakh. Because of the , a
staying power, the unit is able to withstand the fluctuations in ; F
.! the input prices and is able to bargain for upward revision of " b
.1 the prices. They wondered whether the same would be possible fi
for the individual producers, and even a cooperative of al
producers. dl
II
4. If some of the women associations are awarded with the
contract to supply the food, this might lead to politicisation. ,
The elected representatives to zilla panchayat often ask for the na
change in the suppliers, and hence, this may not be sustainable. on

==~" I
 Alternative EmploymentOpportunities/or WomenReedi Workers473

Processingof Agricultural Produce

There seems to be some scope for encouraging small industries to

processthe agricultural produce such as cashewnut and arecanut and other
products. In one of the sample villages some people were working as
wage earners in a cashew processing unit. The LDM opined that scope
for starting cashew-processing units was bright in view of the export
opportunities. He, however, noted that -the prices of agricultural produce
including plantation crops were crumbling and a recession '/Vasalso noticed
in the SSI sector. The focus group discussions in the sample villages
also confirmed the fall in the prices of cashew, areca and coconut. As
such, the credit absorption was becoming a major problem within
agriculture.Similarly, the District Secretary of the CITU expressed serious
concernabout the lifting of import restrictions under the World Trade
Organisation.According to him, as such, the market is flooded with foreign
goods,even food items such as milk, edible oils, agricultural products
like coconut, etc, which might lead to crumbling of all the domestic
industries.These cast a shadow on the processing of agricultural produce
asan option.

What should be the Strategy and Operational Framework?

In light of the above, there cannot be a single strategy to bring

aboutan improvement in the living conditions of the women beedi workers.
Further,the line department of the government cannot undertake this task
by themselves.As such, a multi-pronged strategy and a coordinated effort
fromthe governmentagencies including banks, the NGOs, the trade unions
andthe employers is required to tackle the situation that is likely to arise
dueto a further decline in the beedi work. In this context, the efforts of
ILO are particularly significant and welcome.

l 11 The strategy should be short-term, medium-term and long-term in

nature.This is justified given the risk-averse nature of older women having
only skills of beedi rolling and their long association with the beedi work.

-,
474 Rajasekhar and Sreedhar

Further, the poor households depend somewhat heavily on the beedi rolling
for income generation and employment. Hence, short-term strategy is
important for them. The long-term strategy is important for risk taking
and younger women beedi workers. These have to be specific to particular
target group, locations and situations.

The short-tenn strategy includes the organisation of women beedi

workers at the micro-level and preparing them to face the situation arising
due to a decline in beedi work. SHGs can be an effective instrument for
organising the women beedi workers. The target group should be the poor
women beedi workers and their children who can take risks relating to
non-traditional IGAs. Through these groups it is possible to encourage
them to undertake thrift and internal lending activities to meet their day-
to-day consumption and short-term production credit needs. The women
can be encouraged to undertake land-based and traditional activities as an '
i

alternative and supplementary activity with a built-in provision to slowly

shift them away from beedi rolling. The important activities that car. be
promoted include dairying, vegetable cultivation, preparation of food items,
tailoring and so on either on an individual or collective basis.

The socio-economic features of the district indicate that there exists

a favourable environment for empowerment of women, in general. Thi~ is
evident by the higher female literacy rate, higher female work participation
rate, higher mean age at marriage and lower percentage of married women
in the age group of 15-19 years in the district when compared to the
State as a whole. As such, there is greater scope for organising women
beedi workers into SHGs. This should be an ongoing process in this overall
strategy.

An analysis of the government agencies and NGGs currently involved

in self-help promotion among women in the district reveals the following. I
In the field of micro-finance, 4,305 SHGs were promoted by March 2000, ~
of which 2,214 had been promoted by NGGs, 523 by 'banks and 1,568 by t
government departments and taluk panchayats. Most of the commercial t

-
 Alternative EmploymentOpportunitiesfor WomenBeedi Workers475

banksand Regional Rural Bank branches were playing the role of 'credit
purveyor'. The Districts Central Cooperative Banks (SCDCCB) had taken
up the role of promoting SHGs through Primary Agricultural Cooperative
Society(PACS). The State Level Review Committee on Credit Delivery
Innovations has reiterated the strategies and action plans towards
intensifying the promotion and linkage of SHGs to banks. During the year
'I 2000-2001 about 800 SHGs were linked to banks with appropriate
economic activities. It was then prop.osed that each bank branch should
adopt five SHGs during the year to establish the linkage. The projection
for 2001-2002 is to promote 2,800 SHGs and cover 2,500 SHGs under
this programme.

The SCDCCB is playing the role of Self-Help Promoting Institutions,

; impartingtraining to the personnel of PACS in organising/facilitating SHGs
as well as in linkage banking. A few NGOs are also organising SHGs
and linking them to the commercial banks under the credit linkage
programme of the NABARD. The state government is also promoting
SHGs among women under programmes like SGSY, Stree-sakti, etc.
However, it needs to be noted that these SHGs being promoted by different
agenciesare not organised exclusively for women beedi workers but for
all women belonging to the BPL households. Nevertheless, the majority
of membersof these groups are women beedi workers.

Another important component of the strategy is to bridge the gap

in training needs in self-help promotion, particularly for the NGOs. Many
NGOs in the district are involved in this process only during the recent
pastand as such are not fully equipped in terms of adequate number of
trainedstaff to undertake the task of forming and consolidating the SHGs.
This is true when we take into account the magnitude of the problem in
the context of vast number of women beedi workers involved even in the
remotestvillages. The NGO functionaries need to be provided training on
strengtheningof perspective on self-help and self-help promotion and how
to operationaliseself-help promotion through SHGs and eventually address
f the main problem of women beedi workers.

l
 ..
476 Rajasekhar and Sreedhar

The next important component of this strategy is building a network (

of NGOs with shared vision, common objectives and activities. Forging
linkages with government agencies, banks, development institutions and
market functionaries become important for the network. Policy change P
through lobbying and advocacy is an important part of medium and long- T
term strategy. Process-oriented advisory services may become essential to th
achieve this. dl
.as
Another task in the present context is to create proper awareness th
among the women beedi workers, about the existing legislation for beedi th
workers and the benefits they can derive from their employers. Even for D,
this --purpose the SHGs can be used effectively by different agencies, tn,
particularly the NGOs. It should be ensured that all the women beedi thc
workers are given passbooks, identity cards and adequate work per week
so as to entitle them for various benefits under the existing legislation.
fol
The medium-term strategy involves the linking of these SHGs with of
the ongoing development programmes of the government. The capacities to
of the women beedi workers would be strengthened and they could come shc
together at the cluster level (village as a whole) so that they can pursue ve~
any alternative economic activities. At this stage, the grassroots level hel
workers should be given training as to how to conduct feasibility and Thl
viability studies for alt~rnative activities with the active involvement of frol
women beedi workers. end
cov
The long-term strategy involves further strengthening of the SHGs con
by helping them to federate at block level and effectively enable them to WO
go for a shift from beedi work to other alternative economic pursuits prol
especially for the risk taking and women of next generation. These could for
include preparing them to take up jobs in the IT sector including STD line
I booths, Cyber Cafes, Beauty Parlour, household services, repairs, etc. But, with
j the preparations for this must start now. Policy change in favour of beedi by t
.workers through lobbying and advocacy along with other actors also form worl
part of this strategy. as a

~..
 AlternativeEmploymentOpportunities/or WomenReediWorkers477

Conclusion

The beedi industry is not declining at the micro-level as widely

perceived,but the per capita availability of work has reduced to some extent.
This decline has not adversely affected the income and the livelihoods of
the majority of the beedi workers due to various coping mechanisms and
deliberate strategies adopted by them. However, the health concerns
associatedwith the beedi industry, exploitative relations of production and
the absenceof secured employment in the long run underline the need to
think of potential alternatives. Even though the resource endowment of
OakshinaKannada district provides a favourable environment for launching
initiatives to promote alternatives to beedi work, the poor resource base of
the beedi workers is a major constraint in this task.

Considering the resources available and the market demand/potential

for the economic activities that are perceived as dynamic in the opinion
of the beedi workers and the relevant actors in the district, the alternatives
to beedi work can be divided into three categories; those relevant in the
short, medium and long run. The activities such as dairying, poultry and
vegetablecultivation can be encouraged in the short-run as these would
help women to graduate from the status of 'employed' to 'self-employed'.
The current skills, experience, market opportunities and support possibilities
from the government point that these activities would be feasible. Lower
end of IT activities, STD booths, recycling of paper and plastic to prepare
covers, files and bags can be encouraged as long-term activities by
conducting detailed feasibility studies and building the capacity of the
women beedi workers. A multi-pronged strategy is thus required for
promotingthe alternative economic activities to beedi work and this calls
for an operational framework to facilitate the coordinated efforts of the
, line departments,banks, NGOs and other development institutions along
with the trade unions and the employers of the beedi workers. The initiative
~ by the ILO to launch a pilot project for promoting alternatives to beedi
work by coordinating the efforts of the relevant actors could be considered
n
as a step in the right direction.
 r
i

478 Rajasekhar and Sreedhar ~

Chart 4 : The feasibility of lower level of Information TeChnOlOgy'

activities by women beedi workers
I.
Particulars The evidence
Internal Presenceof educatedunemployedyoung girls in beedi
favourable worker households.
factors The social capital conducive for such activities.
Concern orolder women beedl workers is that at least I

next generationshould find decentwork.

External High literacy rates in the district and migration of 2.
favourable people from the district to foreign countries is providing
factors opportunities for establishing lower level IT activities.
With the district selected for computer education
programme by the governmentof India, the IT sector is
likely to receive a major boost in the near future.
Constraints Market constraints in interior rural areas.
Managerial inadequaciesin this type of technologically
advancedactivities. 3.

Support Training and confidence building measures.

needed
Possible Linkages with NABARD to obtain assistanceunder 1
linkages Assistanceto Rural Women for Non-farm Development
programme.
Overall IT is the emerging dynamic sector intendedto solve 4.
feasibility information-relatedproblems even in rural areas.Hence,
this activity is feasible if promoted in the select towns
and among risk taking young and educatedwomen beedi .
workers. I

5.~

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 18 Alternative Employment Opportunities/or WomenBeedi Workers 479

Notes
i
I: ~ I. The nature of beedi work is such that it causes severe strain to the eyes of
1 the beedi workers resulting in loss or impairment of eyesight, as they grow
older (Avachat, 1978). According to a trade union leader from Maharashtra,
more than 50 per cent of the beedi workers eventually die of TB or asthma
(EPW, 1974). A study conducted in Kerala reveals that about 36 per cent
of the beedi workers suffered. from one or more diseases and 95 per cent
of these is attributed to tobacco fumes (Mohandas 1980).

2. The main reasons are: firstly, Gutka producers have to pay only sales tax,
while the beedi makers have to pay central excise duty as well; secondly,
the advertising on television of pan masala has given positive image to
chewing Gutka; thirdly, beedi cannot be smoked in public places at all
times whereas Gutka can be chewed anywhere anytime; lastly, it is found
that women prefer Gutka. as it is less obvious than smoking beedis
(Jhabwala et al 2000).

The decision of the Kerala government to implement the Beedi and Cigar
Workers (Conditions of Employment) Act, 1966 led to the abrupt closure
of business by the leading beedi manufacturers and shifting to the
neighbouring district of Mangalore in Karnataka (Mohandas and Praveen
Kumar 1992). The beedi indust~ has also shifted from Gujarat to Andhra
Pradesh and presently, from Madhya Pradesh to Bihar, Bengal and
Bangladesh(Jhabwala et al 2000).

The figures on employment in beedi industry during 1993-94 to 1996-97

revealthat it is stagnant,hovering around 4.4 million. Further, the production
of beedi tobacco increased from 138.5 million kgs in 1987-88 to cross
200 million kgs from 1994-95 to 1996-97, but declined slightly to 190.7
million kgs during 1997-98 (Bhattacharya and Bhattacharya 2000).

The latest estimates of the Central Statistical Organisation shows that the
shareof household expenditure on tobacco and tobacco products increased
from 1.5 per cent in 1995-96 to 2.9 per cent in 1998-99 (Rambabu 2000).
480 Rajasekhar and Sreedhar

This may be partly due to an increase in the consumption of Gutka as

indicated by a significant rise in the production of chewing tobacco from
88.4 million kgs in 1987-88 to 188.8 million kgs in 1997-98.

6. For instance, in South Canara district of Karnataka, a major manufacturer

like Mangalore Ganesh Beedi has started production in the eastern state of
Orissa where the costs are lower. Another beedi manufacturer -Sadhu
Beedis -has closed down production, diversified into making biscuits under
the brand name Sadhu Biscuits and plans to start making sandal wood
products. In another major beedi manufacturing house -Bharat Beedis -
the generational change is likely to lead to selling out or phasing out of
the beedi business or diversification into new businesses (ILO 2001).

7. It was reported in a study conducted in a South Indian village that even

though the beedi work provided a guaranteed wage, secured employment
and some degree of economic independence to rural women, it exposed
them to economic and sexual exploitation (Dharmalingam 1993).

8. The discussions with representatives of trade unions and Lead Bank in the
district, functionaries of zilla panchayat and relevant government depart~ents
reveal that the agricultural wages were low during the last two years due
to falling prices for agricultural products such as coconut, coffee and paddy.

9. As per the discussions with the Assistant General Manager of NABARD

In the district.

10. For instance, a 50-year old Ms. Seetha, who is deserted by her husband, 10.
retired after rolling beedis for Prakash Company for 20 years to get
retirement benefits (i.e., Rs. 17,000) for meeting her daughter's marriage
expenses. She now gets a pension of Rs. 250 per month. She started II.

beedi rolling at the age of 9 and got passbook at the age of 19. At
present, she is rolling for Bharat Beedi: After her retirement she got a 12.
card from Bharat Beedi in the name of her daughter and continues to roll.

13
I
 '
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Alternative Employment Opportunities for WomenReedi Workers 481

References
Avachat, A. (1978), Beedi Workers of Nipani, Economic and Political

, 0 Weekly.XIII (30): 1203-5.

Bhattacharya,Shampa and Manas Bhattachrya (2000), A Study on the Beedi
Industry in India: Employment Diversification for the New Millenium. New

Delhi: lLO.
Dharnlalingam,A. (1993), Female Beedi Workers in a South Indian Village,
Economic and Political Weekly. XVIII (22): 1461-8.

Economic and Political Weekly (1974), Beedi Workers of Sinnar, IX (24):

945-6.
l Government of India .(GO~): Ministry of Labour (2000), Annual Report
l 1999-2000.New DeIhl, MinIstry of Labour.
{,~ lLO -Department of Labour (2001), The Reedi Industry in India: An
i

~ Overview. New Delhi, ILO.

r
0!; Jhabwala,Renana et al (2000), Losing Work: A Study of Reedi Workers in

India. New Delhi, ILO.

Mohandas, M. (1980), Beedi Workers in Kerala: Conditions of Life and
Work, Economic and Political Weekly. XV (36): 1517-23.

Mohandas,M. and P.V. Praveen Kumar (1992), Impact of Cooperativisation

on Working Conditions: Study of Beedi Industry in Kerala, Economic and

! Political Weekly.XXVII (25): 1333-8.

NABARD (2000), Potential Linked Credit Plan: 2001-2002 -Dakshina
Kannada, Karnataka. Bangalore, NABARD Regional Office.

11. Rambabu, G. (2000), Households Spending Less on Food, The Hindu,

BusinessLine, February 4.
Sudarshan, Ratna and Nita Mishra (1999), Gender and Tobacco
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Syndicate Bank (2000), District Credit Plan for Dakshina Kannada District
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