Centre plans new scheme to bail out beedi workers

In a significant relief to the beedi industry, which has been hit hard by the 28 per cent GST, the Centre has decided to introduce a new scheme to provide alternative employment and skill development training for the workers.

Dr N Uthaman, a Gudiyattam-based medical-cum-welfare officer of the Union Labour Ministry, said that the union government’s new initiative is aimed at bailing out the workers from the hazardous job of beedi production. He told DTNext that a meeting has been scheduled in Tirunelveli on Friday in this regard and to discuss various other issues related to the beedi industry. The beedi production, which was once a flourishing industry that provided huge job opportunity to unorganised workers has suffered a serious blow after the introduction of the GST. 

A bundle of beedis, which will have 42,000 sticks, earlier attracted Rs 1,000 as the excise duty. After the GST of 28 per cent, the levy has gone up to Rs 6,000, a six-time increase in the tax rate, said a beedi company owner on condition of anonymity. About 3 lakh workers in the district are dependent on this industry for their livelihood in Vellore. 

A Vellore-based beedi company, which is in the trade for 50 years, has 6000 workers and supplies to other states like Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, Maharashtra and Uttaranchal, from where Tendu leaves are sourced. 

“More than 50 per cent of these beedi workers are prone to lung-related diseases, including TB, cervical spondylosis (as they sit continuously for several hours), arthritis and crippled fingers,” added N Uthaman. 

These beedi workers were treated in the Guidyattam dispensary, besides six mobile units visiting the doorsteps of workers in nearby towns. “Though child labour and bonded labour in the industry are non-existent in Vellore district, working parents are being sensitised about the importance of education for their children,” he claimed.