XVII Annual International Seminar Proceedings; January, 2016 ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 69 SMALL SCALE INDUSTRIES AND SUSTAINABLE DEVELOPMENT: A CASE STUDY OF KALIMPONG Bhawana Khati Ph.D. scholar CSRD(Centre for Study of Regional Development) Jawaharlal Nehru University New Delhi. Abstract The hilly regions are devoid of many development possibilities as compared to the plain region. Geographical remoteness, non-availability of well-connected road network, lack of resources and skills are some of the obstacles in the industrial development of the hill areas. The geographical fragility is one of the major hindrances for the establishment of heavy industries. This study is an attempt to highlight the potential of cottage industries in Kalimpong sub-division which lies in the Darjeeling district of West Bengal. The study done is empirical in nature, primarily based on field survey. This region is fragile not only in ecological but as also in economic and political perspective. This study tries to explore the potentiality of local small scale industries in addressing uncertainty and sustainable development issues. It also aims to identify the role of the government in this region, in implementing appropriate development policies. Other aspects relating to the workers and challenges of the units are also included in the study. Keywords: small-scale and cottage industries, hills, environment, sustainable development, unemployment Paper Type: This is a descriptive paper. 1. INTRODUCTION India was an industrially advanced country with textile, calicous and metal wares but with the coming of the British these industries were on the verge of extinction. Though the government took active part in development of the small-scale industries during the 2nd world War these industries got importance only after the conference on Industrial
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XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 69
SMALL SCALE INDUSTRIES AND SUSTAINABLE DEVELOPMENT:
A CASE STUDY OF KALIMPONG
Bhawana Khati
Ph.D. scholar
CSRD(Centre for Study of Regional Development)
Jawaharlal Nehru University
New Delhi.
Abstract
The hilly regions are devoid of many development possibilities as compared to the plain
region. Geographical remoteness, non-availability of well-connected road network, lack of
resources and skills are some of the obstacles in the industrial development of the hill areas.
The geographical fragility is one of the major hindrances for the establishment of heavy
industries. This study is an attempt to highlight the potential of cottage industries in
Kalimpong sub-division which lies in the Darjeeling district of West Bengal. The study done
is empirical in nature, primarily based on field survey. This region is fragile not only in
ecological but as also in economic and political perspective. This study tries to explore the
potentiality of local small scale industries in addressing uncertainty and sustainable
development issues. It also aims to identify the role of the government in this region, in
implementing appropriate development policies. Other aspects relating to the workers and
challenges of the units are also included in the study.
Keywords: small-scale and cottage industries, hills, environment, sustainable development,
unemployment
Paper Type: This is a descriptive paper.
1. INTRODUCTION
India was an industrially advanced country with textile, calicous and metal wares but with the
coming of the British these industries were on the verge of extinction. Though the
government took active part in development of the small-scale industries during the 2nd
world War these industries got importance only after the conference on Industrial
XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 70
Development held in Delhi in 1947.A cottage industries board was set up in 1947 itself. It
was split into three boards All India Handloom Board, All India Handicraft Board and All
India Khadi and Hand Village Industries Board. In addition to this there were three other
boards, Coir Board and Central Silk Board. The industrial policy resolution of 1948 stated
that cottage and small-scale industries have a very important role in the national economy
offering opportunities for individual, village or co-operative enterprise and means of
rehabilitation for displaced persons (Vijayarani 2011).
But this role of small-scale industry does not refer to all regions of the country. Though there
has been a growth in this sector but the pace of growth is not the same in all regions of the
country.It is also within a particular state some regions are more developed than the other.
There may be many factors for this. Some of these may be the variations in the climate, soil,
rainfall, altitudes, availability of water, high road densityetc.The states like Maharashtra,
Tamil Nadu, Karnataka, Goa, and Delhi are industrially developed. There is the existence of
large industries and services in these states. The states like Punjab and Haryana are also
developed due to flourishing agriculture whereas the state like Orissa, Bihar, Madhya
Pradesh, Rajasthan, Jharkhand, Chhattisgarh, Uttar Pradesh, West Bengal and the North
Eastern states are industrially and economically backward and has not performed
well(Thakur 2011).
In the North-Eastern States including Sikkim and Darjeeling due to its varied geographical
limitation, large industries are few in this region.This region has a very good capacity of
generating small-scale industries. So in order to fill this gap small-scale industries in the
regions where large industries are not possible, should be enhanced.
The small scale industries have been given an important place in India’s economic planning
for ideological and economic reasons.Our late Prime Minister Mrs. Indira Gandhi once
remarked. “Small scale industries offer many opportunities, besides adding to production,
they broaden the industrial base. They enable the process of modernization as well as
entrepreneurship to spread to more regions and layers of society” (Shinde 2015).
The significance of small-scaleindustryis also because, it provides
employmentopportunities,capital requirement is low, short gestation period,
promotesbalanced regional development, the entrepreneurial base is widely dispersed and
there is utilization of local resources with minimum harm to the environment. It can touch
upon the lives of the remotest and the most marginalized people in the region.
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2. DEFINITIONS
To define small-scale industries is difficult as it varies from one country to country and
changes from time to time. There has been lot many changes in the definition of small scale
industries since its inception.The Fiscal Commission in 1950 for the first time defined small-
scale industry as an industry which is operated mainly with hired labour, usually 10 to 50.
At present the industries is defined according to the investment ceiling.The small scale
industry ispresently defined “as an industrial undertaking in which the investment in fixed
assets in plant and machinery whether held on ownership or on lease or by hire-purchase does
not exceed rupees one crore” (Hussain 2003).
Whereas the tiny units is definedas “a unit where the investment on plant or machinery does
not exceed Rs 25 lakhs, irrespective of location of the units”(Hussain 2003).
According the MSME Act 2006, the cottage industryis defined as “a unit where the family
members are involved in the managing of the unit and no labour is hired. There is negligible
capital investment and there is only hand production using theirown tools and
material”.However, the cottage industry is a part of the small scale industries. The diagram
below will make it clear the difference between small-scale and cottage industries.
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Figure 1: Classification of small-scale industries
Source: Sharma, 2012.
The SSIs in India are broadly classified into two types, the Traditional industries and Modern
industries.Both the types of SSIs are prevalent in India. Traditional industry is one which is
craft based and passed on from one generation to another. These types of industry are
scattered, unorganized and run with a very little hired labour. The industries like Khadi,
Handlooms, Handicrafts, Coir, Silk and Wool are some of the traditional small-scale
industries. Modern small scale industry is neither traditional cottage industry nor large scale
industry but lies in between these two. This category of industry can produce on a scale larger
than that of a traditional small-scale industry due to the use of power driven technology. But
Power loom Small-scale
With
power
Without
power
Small Scale Industries
Traditional Modern
Khaadi
Village Industries
Handlooms
Coir industry
Sericulture
Cottage
Artisans
Export oriented
Ancillaries
Tiny enterprises
Small Scale Services
and business
enterprises
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in terms of organizational feature such as having few self- employed persons it is closer to
cottage and village industries(Bhavani, 2009).
The definition of cottage and small scale industries are done according to certain criteria but
in practicality it is difficult to categorize the small scale and cottage industries. The industries
in Kalimpong are traditional industries expect few but though their size is small they are not
appropriate to be called cottage industries as they are run not only by family members but
also includes hired labourers. Anotherpoint is that the investment is not so big to separate it
from cottage industries. So the researcher has chosen the term small scale in this study as the
small scale industries include both traditional and modern industries as explained in the
above paragraph.
3. ADVANTAGES OF SMALL SCALE INDUSTRIES IN THE HILLY REGION
Small scale and cottage industries keeping in view the basic needs of the hill people and due
to its environment friendly nature will help in leading towards sustainable development in the
hills. Sustainable development simply implies the use of ecological system in a manner that
satisfies current needs without compromising the needs or options of future generations (The
World Commission 1987). These strategies should incorporate traditional knowledge and
established production systems after they have been carefully evaluated. The aim of
sustainable development should be to maximize human well-being or quality of life without
jeopardizing the life-support environment. The aim of sustainable development should be to
maximize human well-being or quality of life without jeopardizing the life-support
environment (Singh2006).
Firstly, looking at the geographical aspects of the region the growth of large industries is not
suitable for the hilly regions.Therefore small industries are best suited for this region. The
establishment of small scale or household industries can make an excellent substitute for the
heavy industries. This is the most environment friendly industry compared to all other
industries (Maithini 1992).
A study done by Hamid in the state of Jammu and Kashmir, states that in the region which is
not ideally suited for developing large scale industries, the only remedy would be the
establishment of small scale and cottage industries. It is most suited to the socio-economic
condition of the state.He identified the causes of industrial backwardness in Jammu and
Kashmir which included peculiar geographical location, limited resources, shortage of raw
materials, inadequate power supply, insufficient, poor technical know-how, absence of
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entrepreneurial spirit among the local people, no role of potential investors and entrepreneurs
from outside the state and rare financial support. All these characteristics were also prevalent
in states like Mizoram and other hilly regions of India (Hamid1989).
Moreover the development of small scale industries can also curb employment problems in
the hilly region. A World Bank Study (1978) has shown that all important requirements of
more jobs and higher incomes are met by rural non-farm activities.The rural areas in hilly
regions of India are mostly agricultural regions. More than three-fourths of Uttarakhand’s
total population depends on agriculture for their livelihood and the economy.However, the
land holdings are small and fragmented, and irrigation facilities are also limited. The problem
of soil and water conservation is another issue. For physical, geographical and environmental
reasons, the scope for agricultural policies based on modern technologies is severely
constrained in the hill regions. As a result, the majority of the rural population in the hills
either survive on subsistence agriculture or migrate to other parts of the country for
employment.Infact the small-scale industries set up in these regions can uplift the rural
masses to a great extent through local employment and income generation(Mittal2008).
In India the Micro Small Enterprise Sector has the second largest share of employment after
agriculture including the small scale cottage industrial sector. Agro-food processing,
sericulture and other village enterprises have the potential of checking rural-urban
migration.The MSE can provide significant opportunities in North-East and hill states from
where out-migration to metropolitan cities is a common phenomenon(Bhatnagar 2008). In the
hills as men mostly migrate out for work, women are left behind. So it is important to
develop the entrepreneurial skills of women. In Uttarakhand HESCO is involved in many
activities involving village women to make them self-sustained and add to the family income.
They are financed by the project as well as by the WISE group (Women Initiation for Self
Employment that has been proposed by NABARD.They involve women in these activities
irrespective of their qualifications. Various activities that are undertaken to create livelihood
opportunities are fruit preservation, rural bakery, handicrafts, candle-making, bio-crafts,
hand-made paper, greeting cards, making dolls, cards, wall-hanging. etc. They are also
involved in making sweets from local crops, which are often sold at temples and other
religious places as Prasad (Mittal 2008). So the small scale industries can play an important
role in checking out-migration by creating employment opportunities up to the most
marginalised sections of the hill population.
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The small scale sector can also be a medium to conserve the rich tradition and culture of the
region. It is the only sector through which the culture and tradition of a particular community
may be preserved.The traditional small scale industries produce traditional goods like, Khadi
and Handloom items, hats, boots, paintings, curioes,local food items.etc.This leads to the
preservation of the culture of a community.The handicraft items and the local food items are
very famous in Kalimpong. The traditional Naga shawls of Nagaland also symbolize the rich
heritage of the Naga people.These industries are the only medium to continue the production
of local goods.Though this sector is declining but the products of this sector is incomparable
to any foreign item. Therefore we must not let this sector die which not only helps in
enhancing the economy but also preserves our rich heritage and culture.
Therefore the small scale industries are very much needed in the economic and social
development of a region or a country as a whole especially in hilly regions where heavy
industries cannot be sustained and where there is heavy rate of unemployment. Mukherjee
1997, argues as this sector does not require heavy skill and knowledge, small scale sector can
be easily developed in economically backward district like Darjeeling. SSI helps in
maintaining ecology and environment by consuming less power and resources, thereby helps
in achieving sustainable economic growth.
Lying on the Northern part of the state of West Bengal, Darjeeling hills is prominent for tea,
timber and tourism. Even then, it gripped by its own socio-political and economic problems
which makes it the least economically developed districts in India. Unemployment is another
major issue of concern in Darjeeling hills.This region is excluded from the industrial map of
the country. Surely, the economic viability and environmental feasibility does not welcome
large industries. However, the small scale industries have great potentialities in the region
which have not been promoted as required (Khawas2002).
3. OBJECTIVE
Is to identify the existing small-scale industry and their potentiality and to understand their
problems and challenges in reference to environment and sustainable development. It also
attempts to put some suggestions for the growth of small scale industry in the hills.
4.DATABASE AND METHODOLOGY
The study done was empirical in nature, primarily based onfield survey.Data from10 different
small scale industries wascollected through interview method using closed
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endedquestionnaire to analyse the number and characteristics of the industries. For financial
and marketing aspects,the shopkeepers in Kalimpong selling the products were interviewed.
All the existing industries were visited during the field work. The field work was done in the
year 2012 in the month of April.
The datahas been represented through simple frequency tables for the number of units, total
workers, male-female proportion and average. The total monthly expenditure and income of
the each unit had been calculated. The production and marketing information has also been
shown through simple tables.The Census Data of the year 1991 and 2001 has also been
referred to get information about the number of household workers in Kalimpong.
5. STUDY AREA
This study area focused is Darjeeling district in West Bengal with Kalimpong municipal area
as a case study. Kalimpong is one of the largest in area amongst the three sub-divisions in the
district. The average elevation of Kalimpong is 4100 sqft above sea-level. There are five
seasons are spring, autumn, winter and monsoon. The temperature in summer reaches a
maximum of 300 c and in winter it is about 15
0 c (Malley 2001).The total population of the
municipal area is 42998 according to census 2001.The percentage literate is 79% to the total
population. The total number of workers according to census 2001 is 13,382 that is 31% of
the total population. Within the workers the total cultivators are 69, total agro-labour are 129,
total household workers are 233 and others are 12,951 (Census abstract 2001).
6.OVERVIEW OF SMALL SCALE UNITS IN KALIMPONG FROM THE FIELD
The hilly area of the Darjeeling district, namely Kalimpong, Kurseong and Darjeeling is an
industrially backward area. Barring the tea industry, no other large industry worth mentioning
has come up in this region due to various factors like lack of infrastructure facilities and
inputs. The cottage industries in Kalimponginclude local paper making, lollipop1 making,
1 A local sweet made of milk and sugar in a shape of lollipop
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noodle-making(Thukpas)2,fing
3 making, local incense sticks(bhotaydhoop)
4,khada
5making,
wood-carving,handlooms,handicrafts,paintings, wall-panels, Bhutia paintings, etc. Beautiful
curios6are made of copper plates studded with red and blue stones with engravings of replicas
of deities, wonderful thankas7 with paintings depicting the life of Lord Buddha are also
available. These industries thrived sustainably due to local initiative but of late, these
industries are declining and are on the verge of extinction due to many problems. Some raw
material based industries have been established in the region such as milk products, fruit
processing, hand-made paper, handicraftsetc. The hill area of Darjeeling provides a pollution
free and congenial atmosphere for the growth of small-scale industries.
The small-scale cottage industries in Kalimponghave a historical origin. These industries
mainly evolved during the time of the Britishers. But it has been predominantly influenced by
the Tibetan culture. This can be traced back to history when once Kalimpong was a trade-
outpost to Tibet. It served as an important trade route to Tibet via Jelep la Pass. After the
Anglo-Bhutan war Bhutan had to cede the territory east of river teesta to the East India
Company.Kalimpong was then a tiny hamlet.Subsequently after the war this region was
assigned to the sub-division of Western Doars.The next year it was merged with the
Darjeeling district.Kalimpong's proximity to the Nathu La and Jelep La passes offshoots of
the ancient Silk Road, was an added advantage and it soon became an important trading
outpost in the trade of furs, wools and food grains between India and Tibet (O’Malley 2001).
The increase in commerce attracted large numbers of migrants from Nepal, leading to an
increase in population and economic prosperity.In 1962, the permanent closure of the Jelepla
Pass after the Sino-Indian War disrupted trade between Tibet and India, and led to a
slowdown in Kalimpong's .With China's annexation of Tibet in 1959, many Buddhist monks
fled Tibet and established monasteries in Kalimpong. The large number of in-migration of
Tibetan in Kalimpong brought about the diffusion of culture amongst the people of
Kalimpong. One can observe the influence of Tibetan food habits like momos and
Thukpas.Infact most of the manufacturing industries existing in Kalimpong was established
2 A local noodle
3 A type of food item
4 A particular type of incense sticks made of pine tree leaves used specially by the Tibetan community.
5 A piece of cloth which symbolises honour and respect to the one you present. It is used in festivals and
important occasions. 6 Sea shells
7 religious poems
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by the Tibetan people.So Tibetans had an important role to play in the evolution of these
cottage-industries (Ghatraj 2015)
The table below will give an account of the existing small scale industries in the town area of
Kalimpong since the beginning.
Table 1:The origin, type and number of small scale units in Kalimpong
Small Scale industries Origin Type Number of
units
1.Noodles Tibetan community Private 30
2.Dhoop/incense sticks Tibetan community Private 15
3.Fing Tibetan community Private 12
4.Khada Tibetan community Private 6
5.Lollipop Scottish Missionary Private 4
6.Bakery Muslim migrants Private 2
7.Wood-carving Chinese Private 2
8.Hand-made paper Nepal Private 2
9.Handicrafts Tibetan community Private 1
10.Handlooms KalimpongLoomless
Blanket Weaver’s
Society(1985-86)
State owned-District
Industries Centre
1
Source: Field work, Kalimpong, 2012
The Table 1, above gives an account of the data from the field of the number of units and the
workers. From the table above it can be noted that the noodle units are the highest as
compared to all other units. The reason for this may be that noodles serves as a prominent
food item in the region. It is followed by the local incense sticks which is also called the
bhotaydhoop. This is followed by fing which is also a food product made of “moong
da”8.Then is the khada,which is used in occasions like marriage, death ceremonies, and
religious ceremonies.etc. It mainly symbolises respect and dearness to the one presented to.
All the above four items were earlier used only by the Buddhist community. But nowadays
these items are also preferred by the other communities, leading to the rise in its demand and
production. Lollipop is another popular product of Kalimpong.
8A type of pulses.
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The history of lollipop making in Kalimpong goes to Swiss father Andre Butty in 1950’s. He
opened the Swiss diary in 7th mile, Kalimpong. He has a very important role in uplifting the
local people of the village by giving them work in his diary. Many local people of the village
were employed in his farm. Not only lollipos but also other products like cheese were made.
But as time passed the diary could not run properly. Some say the reason for this as the
disloyalty of the workers. Fed up of the situation father Andre sold all the belongings of the
diary along with the cattles and returned back to his homeland. After father returned to
Switzerland some villagers carried on with the work of making lollipop by opening up their
own units (Pradhan 2004).
Amongst the all aboveunitsinKalimpongthe least number of units are of hand-made paper,
wood-carving, handicrafts and handloom. As Kalimpong comprises mostly of the Buddhist
people, it is influenced by the Buddhist culture.
6.1.THE COMPOSITION OF WORKERS AND THEIR WAGE STRUCTURE IN
THE SSI IN KALIMONG
Most of the workers in the small scale units in Kalimpong were the local people of the town
or those from the nearby villages. Both male and females were involved in this sector but the
proportion varied from one industry to another. The Table 2 below will give an idea about the
number of workers engaged in household industries in Kalimpong.
Table 2: Number of workers in Household industry in Kalimpong in different years
Household workers Year
1991 2001 2012
Total persons 298 233 413
Male 261 176 277
Female 37 57 136
Source: *The source for the census 1991 and 2001 is from the census Abstract and for the
year 2012 is from the field ** The above data includes only the municipal area of Kalimpong.
The table 2 above gives an account of the number of persons engaged in household industries
in Kalimpong in the three respective years. The total number of persons in the year 2001 has
declined but has again shown an increase in the year 2012.The household workers in the male
category is also showing the same pattern whereas in the number of female household
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workers there is a consistent increase in the number since 1991 to 2012 and the increase from
2001 to 2012 is very high.
Table 3: Composition of workers in the SSI in Kalimpong in the year 2012
Name of the
product
Total
SSI
Total
number
of
workers
Average
workers
per unit
Male(%) Female(%) Average
monthly
income of
each
workerin Rs.
1.Noodle 30 115 4 93 7 2000
2.Local incense
sticks
15 48 3 90 10 3000
3.Fing 12 148 12 97 3 4000
4.Khada 6 45 8 0 100 1500
5.Lollipop 4 13 3 85 15 3000
6.Bakery 2 10 5 100 0 5000
7.Wood carving 2 4 2 100 0 1500
8.Hand Made
Paper
2 20 10 10 90 2500
9.Handicrafts 1 2 2 50 50 2000
10.Handloom 1 10 10 0 100 4000
Source: Field work, 2012
The Table 3,above gives in detail the total number of workers,average workers per unit and
the male-female composition in each unit in Kalimpong.
It can be noted that the number of units for noodles is the highest(30 unit) but the average
number of workers per unit is very low(4 workers),whereas the highest average workers per
unit is the highest forfing(12workers). The reason for this may also be the higher wage rate
offered in this industry as compared to noodles, despite the production process and the labour
work is similar in case of noodles and fing.
In case of handloom only one unit exists but the number of workers ishigh (10 workers).The
reason for this may be it is run as co-operative society by the state-government. In hand-made
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paper unit also there is only two units but the average workers per unit is similar to the
handloom unit.
Regarding the male-female composition it can be noted that there is 100 per cent females in
handloom and Khada followed by hand-made paper unit. According to the respondents, the
reason for this may be because in these industries the production process is not so strenuous
and is easier for females to work as compared to other industry which requires hard labour.
Women can be encouraged more in this three sectors.
The shortage of labour is a major problem in almost all the industries, even though the
average number of workers in some units are preferential. The industries like noodle making,
fing, bakery requires a lot of labourers.
6.2. PRODUTION PROCESS OF EACH SSI
The process of production in each small scale industry in Kalimpong is very environment
friendly. The Table 4 below will give an idea of the production process in detail.
Table 4: Production process of the SSI in Kalimpong
SSI Raw materials Device/Apparatus required Process of Production
1.Noodle Flour,
egg(sometimes),
colour, water
A small machine for
doughing and then cutting the
noodles in long small bands.
Bamboo sticks for drying the
noodles
First the flour is made into a dough
then it is cut into very fine long hair
like shape. Then it is put into the
bamboo shafts and let dry in the
sun.
2.Local
incense
sticks
Pine leaves and
sunpati9leaves
A apparatus to grind the
leaves into paste and an
apparatus to bring the paste in
shape of sticks. A wooden
board to dry the leaves.
First the dry leaves are made into a
paste and made as a dough and then
is put to shape through a wooden
apparatus. Then it is put into
wooden boards and let to dry.
3.Fing Moong dal, water Big vessels, machine for
grinding the dal, and some
kitchen utensils.
The thick layer of dal water is made
and an the shape of the product is
given by some utensils having
9 A nepali term for a type of leaves
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holes in it and then it is dried in the
sun putting it in bamboo shafts.
4.Khada Cloth, colour A printing board having
mantras and designs
imprinted.
The cloth is put into the wooden
board and pressed and then it is let
to dry in the sun
5.Lollipop Sugar, milk, fire-
wood
No machinery used. Big
vessels for mixture. It is
hand-made.
The mixture of milk and sugar is
boiled for almost 24 hours and
when the mixture gets thick it is
brought to shape by hand. And then
after drying it is ready for packing.
6.Bakery Flour, sugar, water, An owen and some
equipment to cut the bread
into shape.
All the work is done by hand from
douching to preparing breads.
7.Wood
carving
Wood, colour A machine having a blade
like thing to carve the wood.
It runs with electricity.
Wood is carved using a machine
and colours are added to the carved
wood having some designs.
8.Hand
Made
Paper
Daphney plant10
Vat, crusher, boards for
drying in the sun.
First the bark of the plant is cleaned
and boiled in a big vat, after boiling
it is bitten in the chopper and then it
is crushed and put in the board and
let to dry in the sun.
9.Handicra
fts
Cloth, fabric
paintings, threads,
needles
Sewing machine, Painting done on cloth, bags are
made by machine. etc.
10.Handlo
om
Wool, threads Loom It is done through three process,
shedding, picking and battening.
Source: Field work, 2012
From the Table 4, it can be noted that the units using machinery are noodles, fing, local
incense sticks, wood-carving and handloom. According to the response from the owner of the
units, the power consumption is very low in these units. The frequent power cut poses lots of
10
A botanical name for a non-tree shrub found in the altitude between 2000 and 3000mts.The local name is
Argaylee.
XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 83
problems for these industries even though the power consumption is significantly low. The
units not using power are bakery, lollipop and Khada.
Almost all the products except bakery require drying.Drying of the products is done through
sunlight. No artificial mode of drying is used.As there is the problem of water in Kalimpong,
water is recycled and used in industry like hand-made paper which requires a lot of water.
In the production process of lollipop making firewood is used for cooking the mixture as it
requires almost 24 hours to be cooked. Therefore gas cylinders are not affordable.But even
though firewood is used it does not add to environmental pollution as it is done in small-
scale. The producers even have to buy firewood by which the production costs goes up. So if
this be replaced through some new technologies this problem of firewood can be solved.
Regarding the waste products, there is no waste product from any unit which will have any
effect on the environment.All other units except Khada, Hand-made paper, Handicrafts and
Handloom all require less hard labour. Use of big utensils and handling them is required.
Therefore women should be encouraged in other units in management and packaging sectors.
6.3.INCOME AND EXPENITURE OF THE SSI IN KALIMPONG
All the small-scale units selected are facing problem regarding finance, which is main cause
for the dwindling of these industries. These entrepreneurs are unaware of the financial
schemes of the government. They financially depend upon themselves for carrying out the
business. They have not applied for any loan in the bank due to high interest rate
implemented by the bank or else the time taken by the bank to get the loan sanctioned is very
long. So the entrepreneurs depend upon themselves for finance.
From Table 5 it can be seen that highest investment per month is on fing as the price of
moong dal is very high, which is the main ingredient for making fing and the lowest
investment is on bakery as the size of the unit is small. Investment is incomplete without
production, therefore a glance on the production side of these units is a must.
Table 5: Average monthly income and expenditure of each unit
Name of the product Average monthly Average monthly
XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 84
expenditure income
1. Noodles 40,000 50,000
2. Dhoop 15000 20,000
3. Fing 60000 65000
4. Khada 30000 40000
5. Lollipop 20000 25000
6. Bakery 8000 10000
7. Wood-carving 10000 12000
8. Hand-made paper 6000 8000
9. Handicrafts 10000 12000
10. Handloom 10000 15000
Source: field work, 2012
From Table 6, we cannot actually distinguish the highest producing unit as the products are
heterogeneous but we can have a vague idea of the average scale of production of each unit in
a month.
Table 6: Production per month in each unit in Kalimpong
Name of the product Average Production (per month)
1. Noodles 3500 kg
2. Dhoop 2500 packets
3. Fing 9000 packets
4. Khada 13000 mts
5. Lollipop 1200 packets
6. Bakery 2000 packets
7. Wood-carving 20 pieces
8. Handmade paper 500 items
9. Handicrafts 4300 pieces
10. Handloom 15 items
Source: field survey (2012)
XVII Annual International Seminar Proceedings; January, 2016
ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 85
9. LOCAL, NATIONAL AND INTERNATIONAL MARKET
The small scale industrial products are sold in the local market,supplied to various states in
the country and some products are also exported.
Table 7 shows that local handmade paper is supplied to Delhi and Bombay by the middlemen
and then it is supplied to the European countries.Due to the fact that this paper is eco-friendly
the demand from these countries is high.The local demand of this paper is only limited to
monasteries and temples.
Table 7: Local, National and International Market
SSI In Kalimpong Local National International
1. Noodles Kalimpong, Sikkim -
2.Inscense sticks Kalimpong, Sothern India, Ladakh,