MANGALORE: The beedi industry in the nation is facing a formidable phase that the productivity has been reduced by 40 per cent as compared to previous statistics, Deputy Labour Commissioner Vasanth Kumar N Hittanagi has said.Hittanagi was presiding over the South Kanara-Udupi District Beedi Contractors Union’s conference at the Town Hall in Mangalore on Sunday. He said that the distress was caused to the industry due to external threats from chewable tobacco products and cigarettes in the market. “Beedi industry is one of the giant industries which contribute huge amount to the national capital,” he said adding that around 50 lakh people were dependent on around 60 beedi companies for their livelihood.The industry has shown tremendous progress in Undivided Dakshina Kannada (UDK) district eventhough the raw materials like tendu leaves and tobacco were not available locally. It was because of the expertise of around four lakh workers and contractors in the region, the industry had grown, Hittanagi opined adding it was fatal that the industry was in distress.Hittanagi pointed out that the beedi workers who produce 20 crore beedis per day were earning a wage upto Rs 1.20 crore taking the total wage earned per year to around Rs 375 crore. The industry’s contribution to the workers as well as to the government was noteworthy, he added.While the central government would earn Rs 2.5 crore per annum as beedi cess from UDK, the central excise duty paid by the industry in the region was Rs 28.7 crore, Hittanagi said and added that the region also contributed Rs 6.25 crore per year to the National Calamity Fund in addition to Rs 2 crore as education cess.Hittanagi tried his best to deny workers’ allegation that they were exploited by the contractors. He said that neither labour organisations nor any workers had approached with complaint against contractors when he was working as the Assistant Labour Commissioner in Mangalore during 1991 -95. “It is not fare to blame contractors alone for the crisis,” he said adding that the role of contractors in maintaining the industry was significant.Speaking after inaugurating the conference, Lokayukta Justice N Santhosh Hegde said that an organisation would give strength to democracy. “It will be beneficial to any industry if its workers, contractors and owners unite under one banner,” he added.The nation had two types of governments which include political and executive, he said and called upon the people to introspect how well those machineries work for the development of the nation. Talking about Lokayukta’s efforts in eradicating corruption, Hegde said that it was not possible to wipe out corruption completely. “I would do my best to see that corruption will be lessened in future,” he assured.