Socio-Economic Exploration of Micro Enterprises: A Case Study of A Puffed Rice Mill (Vol. 1, Issue 1)

 Socio-Economic Exploration of Micro Enterprises: A Case Study of A Puffed Rice Mill

Introduction  

Micro, Small, and Medium Enterprises (MSMEs) are considered as economic building blocks for inclusive and sustainable economic growth, particularly in developing nations. The World Bank and the International Finance Corporation (IFC) have consistently pointed on the instrumental role of MSMEs in livelihood creation, income generation, innovation, and industrial decentralization. In India, MSMEs contribute to nearly 30% of the gross domestic product (GDP), over 48% of the country’s exports, and provide employment to over 110 million individuals across rural and urban regions. (Shekhar & Rai, 2025) 

According to data from the Ministry of Micro, Small & Medium Enterprises (MSME, 2024), the number of MSMEs registered on the Udyam portal, including those on the Udyam Assist Platform, reached a total of 40,042,875 by March 2024. Among these, micro-enterprises accounted for approximately 97.7 percent, with a total of 39,318,355 registrations (Fi. Small enterprises constituted 608,935 of the total, representing about 1.5 percent, while the total number of medium-sized enterprises is 55,488, comprising roughly 0.8 percent of the registered entities (MSME, 2024). The industries in this sector produce various products, which include wood and wooden products, machinery and equipment, clothes, food and beverages, repair and maintenance units, etc. 

This demographic and sectoral distribution can be determined by the pie chart given below-

According to a data by Press Information Bureau of Govt. of India Exports from MSMEs increased from Rs 3.95 lakh crore in 2020-21 to Rs 12.39 lakh crore in 2024-25. The number of exporting MSMEs surged from 52,849 in 2020-21 to 1,73,350 in 2024-25. The contribution of MSMEs to India's overall exports has steadily risen. MSMEs accounted for 43.59% of total exports in 2022-23, 45.73% in 2023-24, and 45.79% in 2024-25 (up to May 2024).A data of state wise distribution of MSMEs by India Data Maps (2026) positioned West Bengal at 4^th place with 18,00,000 MSMEs which hold 8.51% share in total MSMEs.  

Source: Press Information Bureau

According to recent data by the Central Ministry of MSME and West Bengal MSME Department, West Bengal is one of the top performers in this sector with the involvement of 1.35 crore people and 50 active clusters covering handloom, khadi and other MSMEs. 

According to Udyog Aadhaar registration data, there are approximately 14,488 Micro, Small, and Medium Enterprises (MSMEs) in Birbhum. Out of these, 14,214 are micro enterprises. These micro-enterprises are the economic backbone of rural and semi-urban areas, which generate livelihood opportunities for the people of those areas. This case study of a small agro-processing unit based at Bolpur, Birbhum aims to understand the challenges, labour conditions, and community impact of micro enterprises through primary field research, 

Case Study Analysis 

After systematically integrating and interpreting the primary data collected from the findings of semi-structured interviews with the owner and 3 workers, observation checklists, field notes and secondary data collected from various articles, journals, websites, and the ministry’s annual report, a comprehensive understanding of the economic sustainability of the enterprise, socio-economic challenges of the workers, and the scope of welfare is provided. 

The findings of the case study analysis are mentioned below.

 

Profile of the Unit (Names have been changed to protect confidentiality)-

• Name of the Unit- Maa Kali Muri Mill 

• Type of Unit- Agro-Processing Unit 

• Type of Enterprise- Micro Enterprise. 

• Alignment with the Classification Criteria of  Ministry of MSME-

On 1^st July 2020, the Ministry of MSME revised the classification criteria of micro, small and medium enterprises as part of the Aatma Nirbhar Bharat package. According to that classification, Micro Enterprises are those enterprises “where the investment in plant and machinery or equipment does not exceed one crore rupees, and turnover does not exceed five crore rupees”. 

 

• Investment and Annual Turnover of the Unit 

Components	Investment	Inflation Adjusted Value (2026)	Annual Turnover
Roaster Machine-	10,000 rupees (In 1980s)	~259,171 rupees	Greater than or equal to 36 lakhs
Startup Costs-	~3000 rupees (In the 1980s)	~77,751 rupees
Bank Loan ( for growing the  business)	~22,400 rupees (In 2006)	~80,904 rupees
Total-	41,300 rupees	417,826 rupees

From the above-mentioned investment-turnover ratio, it is proved that the business unit falls under the category of micro enterprises. 

• Name of the Owner- Narendra Prashad Das (Name has been changed to protect confidentiality)                                     
• Age-70 years 
• Historical Background- At first, Mr Narendra Prashad owned a sugar mill, but it was closed due to less profitability. In 1986, he purchased a roaster machine and brought it to Bolpur from Madhya Pradesh and started the first flattened rice (Chira) mill at Bolpur. Later in 1991 he started to produce puffed rice because of its growing demand. He has been in this business for 40 years. 

• Products sold by the Unit-Puffed rice, flattened rice, roasted peanuts, roasted chickpeas, sattu (Roasted Chickpea Flowers), savoury snacks, etc. 

• Raw Materials- The primary raw material for producing puffed rice is rice, which is procured from various rice mills such as Shanti Mill, Radhakrishna Mill, Bardhhaman Mill, Jatadhari Mill, etc. Rice husk, sawdust, and timber is used as fuel in the fireplace of the roaster. Only two types of rice are used for producing puffed rice Lalat and Swarna. 

• Number of Workers-

Male-5 (Permanent) Female-0 

Though there are no full-time female workers but the female members of Mr. Rajendra’s family often help him in managing day-to-day operational tasks of his business. 

• Government Registration- 

Mr Narendra has completed his Udyam registration (Digital Registration for MSME) at the District Industries Centre, located at Suri, Birbhum. 

• Economic Sustainability- The unit plays a vibrant role in maintaining the economic sustainability of the local area. 

The mill provides employment opportunities to the local population, including youth and unskilled workers. By creating jobs within the community, it reduces outward migration to urban centres, ensuring that the local labour force contributes to the growth of their own neighbourhood. 

One of the most critical roles of this business unit as a micro-enterprise is keeping money within the locality. When residents spend money at a local micro-business, that capital is often reinvested locally— to pay employees, buy supplies from nearby vendors, or pay for local services. This creates a Local  Multiplier Effect, where a single rupee circulates multiple times within the community before "leaking" out to external corporations. 

This business unit is dependent on local raw materials which are procured from the neighbouring places of Bolpur like Alam Ganj, Bardhhaman, Ahmedpur Labpur etc, It is a small-scale food processing unit which use local crops like rice, wheat to make marketable products. This promotes sustainable resource management and reduces the carbon footprint associated with long-distance supply chains. 

Operational Challenges of the Business Unit-

Based on interaction with the owner and personal observation, several operational challenges of the business were identified-

Prices of paddy fluctuate significantly between harvest seasons. Mills often face a "working capital trap"  where they must buy in bulk during harvest to lock in lower prices, requiring large storage spaces and high upfront cash.  

Large FMCG brands are now entering the "healthy snack" segment with premium, vacuum-sealed, and flavoured puffed rice. They compete on hygiene and "shelf appeal" rather than just price. 

It was observed that there was no dedicated storage facility to store puffed rice with air and moisture control. Puffed rice is highly hygroscopic (it absorbs moisture from the air quickly). In humid regions like  West Bengal, "demand" is often limited by how fast the product can be moved before it loses its crispness.   

Roasting and sifting machines require consistent, high-voltage power. Frequent power cuts in rural and semi-urban areas hinder the production of puffed rice. According to Mr Rajendra, in 2006 he faced problems with frequent electricity cuts which hampered production.

Traditional methods rely on "master roasters" who judge heat by sight. When these skilled workers leave,  quality fluctuates. Modern machines remove this dependency but require a higher technical skill set to maintain. 

Socio-Economic Exploration of the Workers of Rajendra Chira Mill 

Demographics 

The student social worker interviewed 3 workers out 5 workers because 2 workers were unavailable at the time  of visit to the unit. The demographic information are given below. 

(The names have been changed to maintain confidentiality)

Particulars	Worker-1	Worker-2	Worker-3
Name-	Mananb Ghosh	Kishore Bagdi	Raja Das
Age-	50 Years	35 Yeras	39 Years
Gender-	Male	Male	Male
Educational Background-	Matriculate	5th Pass	Matriculate
Years of Experience-	5 Years	16 Years	14 Years

Particulars	Worker-1	Worker-2	Worker-3
Monthly Salary-	9000rs/month	8700rs/month	10,000rs./month
Role in the Unit-	Inventory Management, Soaking and Drying of rice	Inventory Management	Furnace Operator
Any debt or loan-	No	No	Loan from Bandhan bank for a health emergency of his wife
Monthly Savings-	No	Yes	Yes
Other source of Income-	Agrarian Activities	Agrarian Activities	Agrarian Activities
Festival Bonuses-	Cash Bonus and Clothes	Cash Bonus and Clothes	Cash Bonus and Clothes

Economic Status - 

Identified Challenges- After analysing the interview findings, several economic challenges of the workers were discovered. Those are the following 

1. Salary Insufficiency 

According to the Labour Commissionerate and SGCMS, the revised monthly rates are: ₹9,760 for Unskilled workers of Zone and ₹10,733 for semi-skilled workers of Zone B. From this data it can be  clearly understood that the workers are underpaid. 

Most of the income is spent for fulfilling the basic needs like food, education of the children, medicines  etc. So there is less scope of savings. Apart from that, agricultural activities are considered a secondary source of income which require high input costs like seeds, fertilisers, pesticides, machinery and  labour. The agricultural output in India is subject to climate conditions. Nowadays monsoon has become increasingly unpredictable, which severely affects farmers’ income. 

2. Debt Traps 

Many workers rely on loans from banks, co-operatives or local moneylenders to cover urgent out of  the pocket expenses like health emergency, agricultural expenses etc. This often leads to a form of  debt bondage, where they are forced to work at lower rates to pay off high-interest loans. 

Working Condition & Safety Measures for the Worker- 

Particulars	Worker-1	Worker-2	Worker-3
Working Hours	8:00am-8:00pm	9:00am-9:00pm	9:30am-7:00pm
Work related Health Issues-	No	No	Reddish Eyes (Personal observation)
Sense of Community	Yes	Yes	Yes
Meal Break	Yes	Yes	Yes
Food-	Provided by the owner	Only breakfast is provided by the owner	Provided by the owner

Availability of Basic Necessities for Workers’ Safety 

Natural Lighting and Ventilation	Clean water & Sanitation	Medical Aid	Health Insurance	Safety Gear (Gloves & Masks)	Fire Extinguisher	Formal Leave Structure	Ergonomics (Chair and bencjhes)
✔	✔	❌	❌	❌	❌	❌	✔

Identified Challenges- The student social worker identified several Challenges related to workers’ safety and  social security which are 

            1. Occupational Hazards 

Workers, especially those near the furnaces (Bhatti), are exposed to extreme radiant heat, smoke and the sound of the machine for 8–10 hours daily, which can lead to burn injuries, respiratory issues, redness in the eyes, hearing loss, etc. 

2. Informal Leave Structure 

In the unorganised puffed rice sector, the leave structure is typically informal. If a worker does not show up, they are not paid for the day. There is no provision for  Earned Leave (EL) or Sick Leave (SL). On the other hand, although the West Bengal Factories Act or Minimum Wages Act mandates a weekly day of rest, the unit operates 7 days a week. The workers take breaks only when feeling exhausted or during festivals. 

3. Lack of Safety Gear and Fire Extinguisher 

No safety gear like masks, gloves and safety goggles are provided to the workers while operating the roaster machine and furnace, which can cause various health risks. There was a lack of a proper smoke extraction system or Electrostatic precipitator to reduce air contamination, which create uncongenial environment for the workers inside the production unit. Apart of that, there was no arrangement of fire extinguisher near the furnace area, which made the place susceptible to fire hazards. 

4. Limited Social Security-

The workers are not enrolled in the Employees' Provident Fund (EPF) or Employees' State Insurance  (ESI), which denies them of retirement benefits or medical coverage for work-related injuries. Though the workers have some social security entitlements like ration card, Swasthya Sathi Card etc., they have no insurance coverage for emergencies, which can lead to potential debt bondage. 

Linking Social work theory and Policies for MSME with the Case Study 

Linkage with Empowerment Theory 

Empowerment Theory in social work focuses on helping individuals and communities gain power over their lives by addressing structural inequalities and building internal capacities. 

Individual Level 

Current State: Workers are working as semi-skilled Furnace Operators, yet they face "salary insufficiency"  and a lack of formal recognition. 

Theory Link: Empowerment involves shifting the workers' perception from being "underpaid labour" to  "skilled professionals". Facilitating their enrolment in government schemes like PM Viswakarma Scheme, Entrepreneurship-cum Skill Development Programme (E-SDP), Pradhan Mantri Jiban Jyoti Bima Yojana (PM-JJBY), etc., can increase their sense of self-efficacy and security. 

Organizational Level 

Current State: The unit operates informally with no formal leave structure or safety protocols. 

Theory Link: Transformational leadership from the owner, Mr. Rajendra, is needed to transition the unit from an informal setup to a "safe workplace". This includes providing safety gears (masks, gloves, Safety  goggles), Fire safety equipment to mitigate occupational hazards like radiant heat and smoke. He should also  develop a formal leave structure to prevent his workers from burn out and workload stress. 

Community/Societal Level 

Current State: The mill acts as a "local multiplier," retaining wealth within Bolpur and reducing outward  migration. 

Theory Link: By utilizing local resources and providing neighbourhood employment, the enterprise empowers the rural economy of Birbhum. Social workers can further link this unit to local clusters and TEAM  Initiative ( Trade Enablement and Marketing), which can give this unit exposure to the Open network for Digital  commerce to boost e-commerce and combat "branded players". 

Linkage with Policies for MSME- 

PM Vishwakarma: Since the unit involves traditional food processing, it may align with the PM Vishwakarma scheme,  providing the workers with "Skill Development" and better "Market Access".

ZED Certification (Zero Defect Zero Effect): The air pollution generated by puffed rice (muri) mills, particularly in traditional roasters, is a significant environmental and occupational health concern. Because these units often operate in semi-rural or residential clusters, the localized "pollution rate" can be quite high due to inefficient combustion and lack of filtration. To compete with "Branded Players", the mill can adopt ZED standard certification, which  has3 certification criteria- 

• Bronze: Focusing on basic quality and hygiene (5 parameters). 

• Silver: Moving toward process control and energy efficiency (14 parameters). 

• Gold: Excellence in manufacturing, technology, and global standards (20 parameters). This certification system would encourage the installation of “power-efficient and Less Polutating  Roasters”, "smoke extraction systems" and improve "shelf-life" through better packaging, addressing the hygroscopic nature of puffed rice. 

Conclusion 

The socio-economic exploration of Maa Kali Muri Mill reveals that this micro-enterprise serves as a critical economic building block for Bolpur, fostering inclusive growth through local livelihood generation. While the unit demonstrates remarkable resilience by surviving for 40 years amidst competition from branded FMCG  players, at the same time it highlights the striking vulnerabilities of the unorganised sector. The findings reflect a significant disparity between regulatory mandates and ground reality; workers are currently underpaid as compared to the revised government rates and operate without essential social security benefits such as Employees’ Provident Fund (EPF), Employees’ State Insurance (ESI), or formal leave structures. Furthermore, the lack of safety gear and fire extinguishers near high-heat furnaces exposes labourers to occupational hazards like respiratory issues and burn risks etc. 

In conclusion, it can be said that the case study provided a profound lesson about the human cost of rural industrialisation. The unit's dependency on "master roasters" and traditional skill sets exemplifies its inclination to local craftsmanship, yet it also gives a signal of an uncertain future due to quality control issues and lack of standardised safety protocols. Ultimately, this experience provided a ground-level view of the socio-economic realities of the workers of the unorganised sector and gave an idea about how local agro-processing can promote sustainable resource management. But there is an urgent need for social work interventions to bridge the gap between workers’ harsh realities and existing policies.

Anirban Pati

Department of Social Work

Palli Samgathana Vibhaga, Visva-Bharati