Home-based work

Home-based work is a significant part of the economy, especially in industries where production can be broken down into small, manual tasks. It is a form of decentralised production where the worker operates from their own home rather than a factory.

The products made through home-based work include lace, zari (gold or silver thread embroidery), brocade, carpets, bidis (hand-rolled cigarettes), and agarbattis (incense sticks). A key feature of this system is the role of an agent or contractor. This person supplies the raw materials to the home-based worker and later collects the finished product. Workers are paid on a piece-rate basis — their earnings depend entirely on the number of pieces they produce, not on the time they spend.

Home-based work is done mainly by women and children. This is because it allows them to earn income while staying at home, often due to social norms, lack of other employment options, or the need to combine work with domestic responsibilities.

The bidi industry as an example

The process of making bidis illustrates the entire chain of home-based work.

• It begins in forested villages, where villagers pluck tendu leaves. On average, a person can collect 100 bundles of leaves per day, with each bundle containing 50 leaves.
• The villagers sell these leaves either to the forest department or to a private contractor, who then sells them to the forest department.
• The government auctions the leaves to bidi factory owners.
• These factory owners give the leaves to contractors, who in turn supply both tobacco and leaves to home-based workers.
• The workers — mostly women — roll the bidis at home. The process involves dampening the leaves, cutting them, filling them evenly with tobacco, and tying them with thread.
• The contractor picks up the finished bidis and sells them to the manufacturer.
• The manufacturer roasts the bidis, puts on his own brand label, and sells them to a distributor.
• The distributor sends the packed bidis to wholesalers, who finally sell them to neighbourhood pan shops.

This chain shows how home-based workers are at the very bottom of a long production network. They have no direct contact with the final market, no control over pricing, and are entirely dependent on the contractor for raw materials and payment. The piece-rate system keeps their earnings low and irregular. …